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Customer Relationship Management

This document defines customer relationship management (CRM) as an integrated information system used to plan, schedule, and control presales and postsales activities to improve long-term growth and profitability through a better understanding of customer behavior. It discusses the components of CRM including the customer, relationship, and management. It also covers the determinants of CRM, benefits of adopting CRM, reasons for adopting CRM like retaining existing customers being less costly than acquiring new ones, and the five stages of CRM implementation. The document concludes that CRM is a business philosophy based on trust and value with the role of salespeople being relationship builders and promoters.

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Shakir Malik
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32 views13 pages

Customer Relationship Management

This document defines customer relationship management (CRM) as an integrated information system used to plan, schedule, and control presales and postsales activities to improve long-term growth and profitability through a better understanding of customer behavior. It discusses the components of CRM including the customer, relationship, and management. It also covers the determinants of CRM, benefits of adopting CRM, reasons for adopting CRM like retaining existing customers being less costly than acquiring new ones, and the five stages of CRM implementation. The document concludes that CRM is a business philosophy based on trust and value with the role of salespeople being relationship builders and promoters.

Uploaded by

Shakir Malik
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Customer Relationship

Management

By –
VISHAL MARWAHA
RYTHUM JINDAL
SHIFALI AGGARWAL
GAGANDEEP SINGH
CONTENTS

Define CRM;
Components;
Determinants of CRM;
Model;
Benefits;
Reasons for adopting CRM;
Implementation;
Why decrease in CRM;
Conclusion.
WHAT IS CRM????

 An integrated information system that is used to plan,


schedule and control the presales and postsales
activities in an organization.

 The primary goal of CRM is to improve long-term


growth and profitability through a better
understanding of customer behavior.
COMPONENETS OF CRM
 CUSTOMER:::-----
The customer is the only source of companies
present profit and future growth. However, good
customers who provide more profit is always scarce
because customers are acknowledgeable and
competition is stiff.
RELATIONSHIP:::-----
The relation between a company and its customers
involves continuous bi-directional communication
and interaction. Even though the customers have a
positive attitude towards company
 MANAGEMENT:::-----
CRM is not an activity only within marketing
department rather it involves continuous corporate
changes in culture and processes. The customer
information collected is transformed into corporate
strategy to get market opportunities.CRM required a
comprehensive change in organization and its
people
DETERMINENTS OF CRM
Understand customer needs and problems;

Meet their commitments;

Provide superior after sales support;

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).
MODEL OF CRM

Relationship marketing inputs


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

(Evans and Luskin, 1994)


Reasons for adopting CRM
Competition for the customer is intense.
From economic view, it is less costly to
retain a customer than to find a new one.
The reasons are –
 It is assumed that 20% of a company’s
customers generated 80% of its profits.
 It is 5-10 times more expensive to acquire a
new customer than obtained from an existing
customer.
 A typical dissatisfied customer tells 8-10
people about his or her experience.
Implementation
The implementation of a customer relationship management (CRM) solution is best
treated as a five-stage process, moving from collecting information about your
customers and processing it to using that information to improve your marketing and
the customer experience.

• Stage 1 - Collecting information

• Stage 2 - Storing information

• Stage 3 - Accessing information

• Stage 4 - Analyzing customer behavior

• Stage 5 - Marketing more effectively


Why decrease in CRM?
 Poor planning

 Poor communication

 Weak leadership

 lack of commitment

 Poor integration
Conclusion

o CRM is a new business philosophy based on trust


and value;
o THE role of global salespeople in the process is that
of both relationship builders and relationship
promoters; and
o 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.
THANK YOU

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