Professional Documents
Culture Documents
W . Edwards Deming
CRM Stands For…
• Relationship marketing is a means for attracting,
developing and retaining customers to build strong
customer loyalty.
B2C Space
• CRM means keeping pace with a savvy and
increasingly impatient consumer base that is closer
than ever to finding your main competitor and more
willing than ever to share their bad experiences with
your prospects
Principles of RM
INTENTION
INTERACTION INTEGRATION
The 10 principles of CRM
1. Value segmentation:
Based on the customer needs, preferences, behaviors and economic
potential, which provides the basis for resource allocation decision in
marketing, sales and service.
2. Collaboration:
The customer is involved in the specification, design and/or delivery of a
descried result.
3. Institutional Memory:
When a customer interacts with your company, everyone is the enterprise is
aware of prior interactions, outstanding issues and pending opportunities.
4. Touch-point Alignment:
Customers are able to do business with you through multiple channels which
are aligned to customer need and value.
7 Customer scorecard:
Employee performance requirements and measures are designed drive
specific customer behavior.
8. Listening posts:
Forums to facilitate information sharing and learning about your customers
that helps you to do business with them learn from each other and provide
valuable customer input to your business.
Can create
Sustainable
Advantage
CRM Enhances/Promote
Positive WOM
Lowers Costs of
Reduces Failure Attracting New
Costs Customers
CRM HELPS TO…..
• Insulates Customers from Competitors
• Customer database
• Building a customer database
• Using the customer database
• Design the supply chain from the market backwards
• Build a employee wide customer orientation
• Integrating info' from all customer touch points
• Developing a loyalty scheme
• Personalized treatment of the most valuable customers
80-20 Rule
• Top 20% of the customers produce as much as 150% of the overall
profit while the bottom 20% of the customers drain about 50% of the
bottom line and the revenues from the rest just meeting the expenses
Customer Life Cycle
• Customer Acquisition
• Customer Development
• Leveraging Customer Equity
• Customer Retention
MVC (Most valued customer) through LTV
(Life time value)
Customer Attrition Vs Retention
• The more customers leave
– The greater loss of revenue
– loss of initial acquisition investment
– Loss of stable market base for selling new products
• Company stays profitable by:
– Cash flow from 3 sources
• Understand customers
• Can provide required products/services in a cost-effective fashion
• Can do better than others
Recovered Customers Vs No Complaint
Customers
• “thank heavens for complaints, the ones I worry about are the ones I
never hear from.”
• Reducing costs.
• Improving efficiency
Advantages of CRM
Increase customer revenues
• Reduction in costs
– Order processing
– Short-term acquisition costs
– Customer referrals
• 2-way communications
– Improves customer satisfaction
It should include
Protection of investments in existing software.
A flexible, tiered approach.
Total integration of information systems.
Leveraging the internet.