INTRODUCTION

Customer relationship management (CRM) is a cross-functional enterprise

system for managing a companys interactions with current and future customer.

It often involves using technology to organize, automate and synchronize sales,

marketing , customer service, and technical support.

Customer- focused business is one of the top business strategies that can be

supported by information technology.

CRM helps to support many companies who are reorienting themselves into
customer- focused businesses as a top business strategy.

Detailed and accurate knowledge of customers and their preferences helps firms
increase the effectiveness of their marketing campaigns and provide higher quality
customer service and support.

CRM SYSTEM

CRM system consolidate and integrate customer information from multiple

communication channels- telephones, e-mail, wireless devices and retail outlets.

CRM system capture and integrate customer data from all over the organisation,
consolidates, analyses, and then distribute the result to various systems and
customer touch points across the enterprise.

CRM software provides the tools that enable a business and its employees to
provide fast, convenient, dependable and consistent service to its customers.

CRM systems support the collaboration of employees, business partners and the
customer themselves in enhancing profitable customer relationships.

Siebel systems, Oracle peoplesoft, SAP AG are some of the leading vendors of the
CRM software.

COMPONENTS OF CRM
The major application components of CRM
includes:

I.
I.

Contact and account management

II.
II.

Sales

III.
III.

Marketing and fulfillment.

IV.
IV.

Customer service and support.

V.
V.

Retention and loyalty programs.

.
.

All aimed at helping a company acquire,

enhance, and retain profitable relationships
with its customers as a primary business
goal.

I. Contact and Account Management

CRM software helps sales, marketing, and service professionals capture and track
relevant data about every past and planned contact with prospects and customers,
as well as other business and life cycle events of customers.

CRM system store the data in a common customer database that integrates all
customers account information and makes it available throughout the company via
internet, intranet or other network links for sales, marketing service and the other
CRM applications.

II. Sales

CRM system provides sales reps with the software tools which helps in tracking
customer contacts and other business and life cycle events of customer for crossselling and up- selling.

Examples include sales prospect and product information, product configuration and
sales quote generation capabilities.

III. Marketing and Fulfillment

CRM system can automate tasks such as qualifying leads, managing responses,
scheduling sales contacts, and providing information to prospects and customers.

CRM systems helps marketing professionals capture and manage prospect and
customer response data in the CRM database, analyse the customer and business
value of a companys direct marketing campaigns.

IV. Customer Service and Support

CRM helps customer service managers quickly create, assign, and manage service
requests.

Call center software routes calls to customer support agents based on their skills
and authority to handle specific kinds of service requests.

Help desk software assists customers service reps in helping customer who are
having problems with a product or service, by providing relevant service data and
suggestions for resolving problems.

V. Retention and Loyalty Programs

It costs six times more to sell to a new customer than to sell to an existing one.

A typical dissatisfied customer will tell eight to ten people about his or her
experience.

A company can boost its profits 85 percent by increasing its annual customer
retention by only 5 percent.

The odds of selling a product to a new customer are 15 percent, whereas the odds
of selling a product to an existing customer are 50 percent.

Seventy percent of complaining customers will do business with the company again
if it quickly take care of a service snafu.

More than 90 percent of existing companies dont have the necessary sales and
service integration to support e-commerce.

Retention and Loyalty Programs

Enhancing and optimizing customer retention and loyalty is a primary objective of

CRM

Identify, reward, and market to the most loyal

and profitable customers.

Evaluate targeted marketing and relationship programs.

THE THREE PHASES OF CRM

THE THREE PHASES OF CRM

The three phases of CRM are,

I.

Acquire

II.

Enhance

III.

Retain

I. Acquire

A business relies on CRM systems, which helps to acquire new customers by doing
a superior job of contract management, sales prospecting, selling, direct marketing,
and fulfillment.

The goal of these CRM function is to help customers perceive the value of a
superior product offered by an outstanding company.

II. Enhance

Web- enabled CRM account management and customer service and support tools
helps to keep customers happy by supporting superior service from a responsive
networked team of sales and service specialists and business partners.

CRM sales force automation and direct marketing fulfillment tools help companys
cross- sell and up- sell to their customers, thus increasing their profitability to the
business.

The value perceived by customers is the convenience of one- stop shopping at

attractive prices.

III. Retain

CRM analytical software and database help a company proactively identify and
reward its most loyal and profitable customers to retain and expend their business
via targeted marketing and relationship marketing programs.

The value perceived by customers is of rewarding personalized business

relationship with their company.

BUSINESS BENEFITS OFCRM

Identify and target the best customers.

Real-time customization and personalization of products and services.

Track when and how a customer contacts the company.

Provide a consistent customer experience.

Provide superior service and support across all customer contact points.

CRM FAILURES

Lack of understanding and preparation.

Not solving business process problems first.

No participation on part of business stakeholders involved.

TRENDS IN CRM

Four types or categories of CRM that are being implemented by many companies
today include:

I.

Operational CRM.

II.

Analytical CRM.

III.

Collaborative CRM.

IV.

Portal- based CRM.

I. Operational CRM

Supports customer interaction with greater convenience through a variety of

channels.

Synchronizes customer interactions consistently across all channels.

Makes the company easier to do business.

II. Analytical CRM

Extracts in- depth customer history, preferences, and profitability information from
data warehouse and other databases.

Allows analyzing, predicting, and deriving customer value and behavior and
forecasting demand.

Customers are given offers that are tailored to their needs.

III. Collaborative CRM

Enables easy collaboration with customers, suppliers, and partners.

Improves efficiency and integration throughout the supply chain.

Allows greater responsiveness to customer needs through sourcing of products and

services outside of your enterprise.

IV. Portal- based CRM

Provides all users with the tools and information that fit their individual roles and
preferences.

Empowers all employees to respond to customer demands more quickly and

become truly customer- focused.

Provides the capability to instantly access, link, and use all internal and external
customer information.

FOREIGN COMPANIES ADOPTING CRM

INDIAN COMPANIES ADOPTING CRM

CONCLUSION

CRM is an innovative approach undertaken by the marketers in the process of

developing lifetime customers and maximizing lifetime value of the customers.

Companies no longer regard marketing, service and sales as separate entities.

Instead they are more concerned with treating them with a holistic approach.

Technology has been used effectively to enhance the utility and application of CRM.
The need is to adapt ever changing technology to meet newer challenges before
CRM.
It is dynamic process and right mind-set of managers is key for the success.

Thank you