CUSTOMER RELATIONSHIP MANAGEMENT ( CRM)

Presentation by Sanjay Setia

Situation: There is a sudden departure of important customer facing key account executives
Result: 1. It leads to loss of key customers OR 2. It does not affect the Company

CONSUMER BEHAVIOUR
Changed dramatically last decade the abundance of choice availability of information entitlement ( customers asking what have you done for me lately) commoditization of goods & services insecurity (consumer financial problems reduce loyalty) time scarcity

ConsumerPersonal & Organizational

Marketing Concept- STP- 4 Ps Customer Value, Satisfaction & Retention Loyalty Loyalists, Apostles, Defectors, Terrorists, Mercenaries, Hostages Consumer Decision Making View Economic, Passive, Cognitive, Emotional Relationship (Loyalty) Programmes

Relationship Marketing
AIM: fostering ongoing communications furnishing loyalty by building in extras like upgrades stimulating sense of belonging by providing an exclusive club membership Relationships between organizations evolve at three different levels: economic, social & structural

Individuals grow bigger than the organization

Initial Phase- Harmless Secondary Phase- Mutually serving, ego satisfaction Final Phase- Crisis of confidence & severe loss to both Departure of key account executives impacts existing customer relationships What are alternatives available to Cos.?

Strategies to retain key customers

Rotating employees Let teams handle key accounts & not individuals Organize informal get-togethers with key customers Exchange of visits by vendors & customers Provide good assistants to customer contact executives Supervisors & Managers also to touch base with customers more frequently Maintain a database of customers Let the separation be a planned one Take customers into confidence Let the parting be a smooth affair

And by adopting intelligent customer relationship management

Benefits of CRM : Streamlined sales & marketing processes Higher sales productivity Added cross selling & up-selling opportunities Improved service, loyalty and retention Increased call centre efficiency Higher close rates Better profiling & targeting Reduced expenses Increased market share Higher overall profitability Marginal costing

Effective CRM
Define business problem Build marketing database- Data Mining Explore data Prepare data for modeling Build model Evaluate model Deploy model & results

Conclusion
Customer relationship management is essential to compete effectively in todays market place. The more effectively you can use the information about your customers to meet their needs the more profitable you will be. Companies should treat a customer relationship management solution as a product or service and its users as internal customers- by making it valuable, pricing appropriately, advertising and providing after-sales support. The route to a successful business requires that you understand your customers and their requirements and data mining is the essential guide.