CRM

Customer Relationship Management is the

practice of identifying attracting and retaining
the most valuable customers to sustain
profitable growth
***
“The true business of every company is to make
and keep customers”

Peter Drucker, 1954

 CRM
“Customer Relationship Management
is the process of making and keeping
customers and maximizing their
profitability, behaviors and
satisfaction”.
 CUSTOMER
“A Customer is the most important visitor on our
premises. He is not dependent on us. We are
dependent on him. He is not an interruption in our
work. He is the purpose of it. He is not an outsider on
our premises. He is part of it. We are not doing a
favour by serving him. He is doing us a favour by
giving an opportunity to do so. A customer is not a
person to argue with. No one ever won an argument
with a customer.”

Somebody said it in early 40s – Can you guess ?

 THE CUSTOMER

There is only one boss: the

customer…. He can fire
everybody in the company,
from the Chairman on down,
simply by spending his money
somewhere else.”
Sam Walton
Founder, Wal Mart
TODAY’S CUSTOMER – AN EXTREME
VIEW
Customer is not King
Customer is a Dictator
Customer is an Extremist
 Maintaining Relationship : The key

Enquiries

Prospects First-time Repeat Advocates

Clients
customers customers

Partners

Inactive or
Source: Marketing Management ex-customer
Philip Kotler
 Other Reasons for the birth of CRM

• It costs ten times more to sell to a new customer

than to sell to an existing one.
• A typical dissatisfied customer will tell 8 to 10
people about his or her bad experience.
• The odds of selling to a new customer are 15
percent, whereas the odds of selling to an existing
customer are 50 percent.
• Eighty percent of complaining customers will do
business with the company again if it quickly takes
care of the problem.
CUSTOMER HAS THE KEY

45%
45% ofof customers
customers switching
switching
suppliers
suppliers cite
cite customer
customer service
service
issues
issues as
as the
the reason
reason for
for the
the
switch.
switch.

Study by Travellers Insurance

 CRM Mantras
• Make it easy for customers to do
business with you

• Customer relationship count

 Relationship
•Which products of yours does this customer have ?
•What is the total value of this customer relationship ?
•If he calls up at the call center, would the agent know the
entire relationship ?
•Can he talk about all your different products in the same
call ?
•Do you know that it is in his best interest to buy product
X from you now, without his telling you ?
•Can you gather intelligence from each one of his
transactions ?
Need to understand entire relationship !
 Is this a different way of business ?
•Old way
•Sell products
•Conduct product research : What we sell ?
•Have product sales and profitability targets
•Have product specialist groups
•Introduce new offerings every few years / months
•Know the customer through personal contact
•Constantly search for new customer acquisition

Think products, think transactions !

(Contd….)
•Identify the Most valuable Customers
(MVCs)
•Mark them on to a special club (Club
Première in Jet Airways, The Inner
circle Taj)
•Train all customer contact employees
to take special care of them
Reward loyalty
•Frequent flyer program
•Discount coupons, gifts
•Measure service quality and
customer satisfaction
•Get individual feed-back from
customers
 Customer’s Experience Is
Your Brand
Keep
Customers

Know Win
Customers Customers

Customer = Product Process

+
Satisfaction Satisfaction Satisfaction
THANK YOU
Any question?