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Customer Relationship Management (CRM) : Submitted by Name: Ratul Bhattacharyya ROLL: 151 Section: C

CRM involves developing long-term relationships with customers to deliver superior value. It is a business philosophy and process that identifies and meets customer needs. The goal is to create mutually beneficial relationships that profit both the customer and the organization. Salespeople play a key role in building trust, understanding customer problems, and providing after-sales support to develop customer relationships over time.

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93 views

Customer Relationship Management (CRM) : Submitted by Name: Ratul Bhattacharyya ROLL: 151 Section: C

CRM involves developing long-term relationships with customers to deliver superior value. It is a business philosophy and process that identifies and meets customer needs. The goal is to create mutually beneficial relationships that profit both the customer and the organization. Salespeople play a key role in building trust, understanding customer problems, and providing after-sales support to develop customer relationships over time.

Uploaded by

rratulrockss
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

SUBMITTED BY
NAME: RATUL BHATTACHARYYA
ROLL: 151
SECTION: C
What is Customer Relationship Management (CRM)?

CRM is “the development and maintenance of mutually beneficial


long-term relationships with strategically significant customers”
(Buttle, 2000)

CRM is “an IT enhanced value process, which identifies, develops,


integrates and focuses the various competencies of the firm to the
‘voice’ of the customer in order to deliver long-term superior
customer value, at a profit to well identified existing and potential
customers”.
(Plakoyiannaki and Tzokas, 2001)
Understanding Customer Relationship Management (CRM)?

CRM is a business philosophy based on upon individual customers


and customised products and services supported by open lines
of communication and feedback from the participating firms that
mutually benefit both buying and selling organisations.

The buying and selling firms enter into a “learning relationship”,


with the customer being willing to collaborate with the seller and
grow as a loyal customer. In return,, the seller works to maximize
the value of the relationship for the customer’s benefit.

In short, CRM provides selling organisations with the platform


to obtain a competitive advantage by embracing customer needs
and building value-driven long-term relationships.
Determinants of CRM

Trust

The willingness to rely on the ability, integrity, and motivation of


one company to serve the needs of the other company as agreed
upon implicitly and explicitly.

Value

The ability of a selling organisation to satisfy the needs of the


customer at a comparatively lower cost or higher benefit than
that offered by competitors and measured in monetary,
temporal, functional and psychological terms.
Determinants of CRM

In addition to trust and value, salespeople must:

1.Understand customer needs and problems;

2.Meet their commitments;

3.Provide superior after sales support;

4.Make sure that the customer is always told the truth


(must be honest); and

Have a passionate interest in establishing and retaining a long-


term relationship (e.g., have long-term perspective).
Stages in the development of a Customer Relationship

The Pre-relationship Stage


The event that triggers a buyer to seek a new business partner.

The Early Stage


Experience is accumulated between the buyer and seller although a great
degree of uncertainty and distance exists.

The Development Stage


Increased levels of transactions lead to a higher degree of commitment and
the distance is reduced to a social exchange.

The Long-term Stage


Characterised by the companies’ mutual importance to each other.

The Final Stage


The interaction between the companies becomes institutionalized.
Functions of Customer Relationship Management

Direct functions (are the basic requirements of a company that are


necessary to survive in the competitive marketplace)
Profit;
Volume; and
Safeguard

Indirect functions (are the actions necessary to convince the


customer to participate in various marketing activities).
Innovation:
Market;
Scout: and
Access.
Functions of relationship management

Value Creation Process


Technology delivery process
•R&D
•Technology integration
Management •Efficiency, effectiveness
Decision learning
Process
Value-based
Customer Product delivery process Strategies
sensitivity •Concept to launch •Pricing
•Manufacturing process •Communication
•Diversity
•Information
•Differentiated Customer delivery process
offering •Supply chain
•Distribution
•Infomediation (distribution
of information)
The role of salespeople as relationship builders and promoters

Salespeople by:

identifying potential customers and their needs;


approaching key decision makers in the buying firm;
negotiating and advancing dialogue and mutual trust;
coordinating the cooperation between the customers and
their company;
encouraging the inter-organisational learning process;
contributing to constructive resolution of existing conflicts; and
leading the customer relationship development team are the
individuals in any organisation who act both as relationship
builders and as relationship promoters.
Models of Customer Relationship
Management
The Evans and Luskin (1994) model for effective
Relationship Marketing

Relationship marketing inputs


•Understanding customer
expectations
•Building service partnerships
•Empowering employees
•Total quality management
Relationship marketing outcomes
•Customer Satisfaction
•Customer loyalty
•Quality products
•Increased profitability

Assessment state
•Customer feedback
•Integration
(Evans and Luskin, 1994)
Managing Customer Relationships
The global salesperson must be involved in the following activities in order to initiate,
develop and enhance the process that is aimed at building trust and commitment
with the customer.

Initiating the relationship

Engage in strategic prospecting and qualifying;

Gather and study pre-call information;

Identify buying influences;

Plan the initial sales call;

Demonstrate an understanding of the customer’s needs;

Identify opportunities to build a relationship; and

Illustrate the value of a relationship with the customer


Managing customer relationship

Developing the relationship

Select an appropriate offering;

Customise the relationship;

Link the solutions with the customer’s needs;

Discuss customer concerns;

Summarize the solution to confirm benefits; and

Secure commitment.
Managing Customer Relationships

Enhancing the relationship

Assess customer satisfaction;

Take action to ensure satisfaction;

Maintain open, two-way communication; and

Work to add value and enhance mutual opportunities.


Relationship networks

The ultimate outcome of a successful CRM strategy is the creation


of a unique company asset known as a relationship network.

A relationship network consists of the company and its major


customers with whom the company has established long and
enduring business relationships.

The additional aspects of a global salesperson’s job are to:

• Manage customer value;


• Act as customer advocate; and
• Enhance customer loyalty and build a “health” and
profitable network of relationships.
Summary

• CRM is a new business philosophy based on trust and value;

• The core function of CRM is the value creation process;

• Customer relationships develop over time;

• The role of global salespeople in the process is that of both


relationship builders and relationship promoters; and

• The basic premise of CRM is to offer superior value to


customers in an effort to turn prospects into
customers, customers into loyal customers, and loyal
customers into partners.

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