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Case Study about CRM Platform

 Customer Relationship Management (CRM)
 CRM is used to manage the relationship between customers.
 CRM is an approach to building and sustaining long term business with customers.
 Which is a system for managing all of your company's interactions with current and
potential customers.
 It uses data analysis about customer history with a company to improve business
relationships with customers, specifically focusing on customer retention and
ultimately driving sales growth.
 One important aspect of CRM approach is systems of CRM that compile data from a
range of different communication channels, including a company’s website, telephone,
email, live chat, marketing materials and more recently, social media. Through the
CRM approach and the system used to facilities it, business learn more about their
target audiences and how to best cater to their needs.

 Need and Importance for Customer Relationship Management

 Customer Relationship Management leads to satisfied customers and
eventually higher business every time.
 CRM goes a long way in retaining existing customers.

 Customer Life Cycle

 1. Customer Selection
 Who to target
 Value
 Life cycle
 Reach
2. Customer acquisition
 Right segment
 Minimize cost
 Service quality
3. Retain
 Customer retention refers to a company's ability to turn customers into repeat
buyers and prevent them from switching to a competitor.
4. Extend
 Customer expansion is a process of generating maximum value for current
customers and encouraging them to purchase more. It enables brands to retain
customers and save costs on customer acquisition.

 The key principles of relationship marketing

An emphasis on retention of profitable customers

Maximizing the lifetime value of a customer is a fundamental goal of relationship marketing.
In this context we define the lifetime value of a customer as the future flow of net profit,
discounted back to the present, that can be attributed to a specific customer. Adopting the
principle of maximizing customer lifetime value forces the organization to recognize that
not all customers are equally profitable and that it must devise strategies to enhance the
profitability of those customers it seeks to target.

An emphasis on multiple markets

Relationship marketing focuses marketing action on multiple stake- holder markets. The six
markets stakeholder model provides a useful A strategic framework for CRM framework for
reviewing the role of an extended set of stakeholders. The model identifies six key groups,
or market domains, that contribute to an organization’s effectiveness in the marketplace.
They are customer markets, influencer (including shareholder) markets, recruitment
markets, referral markets, internal markets, and supplier/alliance markets.

An emphasis on a cross-functional approach to marketing

For a long time marketing strategies have been developed within functionally based
marketing departments. As a result, the marketing strategies developed often do not take into
account their organization-wide implications. The problem is that they are functionally
 focused not market focused. They typically seek to optimize the use of inputs and hence are
budget driven, rather than seek to optimize around outputs and hence be market driven.
Rarely do they consider the interrelationship of different shareholders.

 Process of CRM

1. Generated Brand Awareness

Generating brand awareness is the first step in the CRM process.
Usually initiated and managed by the branding and marketing teams, it helps ensure
potential customers know about your brand and what you offer. This step is like
introducing yourself to someone for the first time.

2. Acquisition / Lead Generation

Customer acquisition refers to the process of bringing in new customers or clients

for your business. This is typically achieved when a customer purchases your
product for the first time, or subscribes to your service, and it is, in many ways, the
central goal of a company.
Lead acquisition, also called lead generation, is a marketing process in which you
attract site visitors who express their interest in your brand, company's product and
convert them into your customers.
Lead generation is the process of building interest in a product or service and then
turning that interest into a sale. Lead gen makes the sales cycle more efficient
 because it focuses on the strongest and most valuable prospects. The result is greater
success in new customer acquisition and conversion rates.

3. Conversion
A CRM system may assist small businesses in generating leads and turning those
prospects into lifelong clients. Maintaining the customer's data, not only makes the
work of the sales staff easier but also fosters relationships with the customers.

Conversion rate is the percentage of user actions taken after total clicks and is
calculated as clicks/actions. A higher conversion rate means a more successful
online marketing campaign and lower marketing costs per customer. A good
conversion rate varies widely by industry, with an average range of 2%-5%.

Customer Conversion is the number of people who make a purchase divided by the
number of people who enter the store. If 100 people visit a store, and 5 of them buy
something, the Customer Conversion is 5%.

4. Provide superior customer services

How would you provide superior customer service?
1. Treat customers with respect.
2. Provide prompt assistance.
3. Find solutions that actually meet customer needs.
4. Communicate clearly and concisely.
 5. Be honest when things go wrong. ...
6. Focus on customer satisfaction and a sense of care.
7. Have a positive attitude.
8. Educate your team members about your business.

5. Drive upsells
Upsell opportunities are sales strategies used by companies to promote higher
versions of their products than what prospective customers originally intended to
buy. In addition to boosting revenue, upselling also gives the customer a chance to
use a product or service that has more capabilities and features.
Upselling is the practice of selling a customer a higher-end version of an item they're
interested in. For instance, an electronics retailer pointing out the benefits of a better
TV, a faster laptop or a more durable tablet would be an example of upselling.

 Types of CRM systems

1. Operational CRM systems
2. Analytical CRM systems
3. Collaborative CRM systems
4. Strategic CRM systems

1. Operational CRM systems

Operational CRM are designed to help execute sales, marketing, and customer service
functions. They help streamline and manage all the ways your company interacts with
customers.
 The main goal of this type of operational CRM is improving customer acquisition and retention:
they help generate new leads, nurture them, convert them into customers, and retain them
through ongoing marketing communications and high-quality customer service.
Businesses of all sizes use operational CRM systems and frequently enable time-saving CRM
automations, including:
 Marketing automations. Marketing automation can target specific customer segments with
emails, texts, and digital ads. These can be initiated by triggers, like a purchase or landing page
visit. For longer sales cycles, operational CRM can track touchpoints, automate follow-ups, and
indicate when a lead should progress to a sales lead.
 Sales automation. Like marketing automation, sales automation uses behavioral triggers to
help your sales team automatically provide customers with strategic communications at specific
points in the sales process. They also help you score and manage leads and can automatically
generate sales forecasting reports.
 Customer service automation. CRM customer service automations include self-service
features, live chat and AI-powered chatbots, and automated email responses, which can help
you efficiently handle customer requests.

2. Analytical CRM systems

Whereas an operational CRM system helps get leads into your sales funnel, an analytical CRM
system enables you to understand how your prospects are moving through your sales funnel.
Analytical CRM systems capture, store, and analyze customer data to provide insights into how
customers interact with your business, allowing you to assess the effectiveness of marketing, sales,
and customer service efforts and adjust your strategy accordingly. You might run a report on six
recent marketing campaigns, analyze the data to gauge their efficacy, and model future campaigns
on the winning example’s tactics.
Analytical CRM can also run performance reports, such as sales history and customer service
satisfaction scores, allowing you to leverage the strengths of high-performing team members and
identify areas for employee development.
Analytical CRM are used by businesses of all sizes and are particularly valuable for those focused
on improving their customer relationship management practices.
3. Collaborative CRM systems
In a large business, sales, marketing, and customer support teams frequently collaborate on client
accounts. The main goal of a collaborative CRM is to improve customer experience and streamline
business processes by facilitating communication between departments.
Collaborative CRM are particularly popular with large businesses—companies with large customer
bases in which multiple people service individual client accounts. Here’s an example of how
communication between departments might play out over a customer life cycle:
1. A sales team member gathers information on a new lead at an event and uploads it to the CRM
database.
2. A marketing team member inputs the new lead into an automated marketing campaign.
3. When your sales team member reaches out with a follow-up call, they can see the customer’s
entire history with your company, from the initial conversation at the event to their engagement
with marketing materials.
4. Your new customer makes a purchase, automatically prompting a customer service call to thank
them for their business.
5. The customer submits a customer request, which notifies a customer service representative via the
CRM. Because the customer service agent has access to the customer’s entire marketing, sales, and
customer service history, they can resolve the issue quickly.

4.Strategic CRM systems

Strategic CRM are sometimes lumped in with collaborative CRM and provide many of the
same features. The difference is that while collaborative CRM focuses on immediate
improvements, strategic CRM concentrates on long-term customer engagement. Their main
goal is to support customer retention and increase customer loyalty.

Strategic CRM collects information about customer needs and priorities to provide value to
your client base. For example, they might tell you which communications channels specific
customers prefer to use. They’re handy for businesses requiring long-term customer
relationship management, such as an IT company that provides clients with ongoing data
management services.