Customer Relationship

CUSTOMER RELATIONSHIP
MANAGEMENT
PRESENTED BY:-
DALIP RAI 500902009

JASMANINDER SINGH 500802505
CHANGING MARKET
ENVIRONMENT
• Market has changed its focus from product-
centric to customer-centric.
• Customers have assumed the most important
position in the business equation.
• Customers are demanding a different
relationship with suppliers than the traditional
sales model
Change in approach to
customer relationship
To: Finding product

that are right for
each customer
From: Finding a
customer that are
right for each
product.
CRM
Customer –
1. A person who buys on products or services from a shop on
business.
2. A person or thing of a specific kind that one has to deal with.
Relationship-
3. The way two or more people are connected or in a state of being
connected.
– The way in which two or more groups of people regard &
behave towards one another.
2. An emotional association between two people.
Management-
3. The process of managing
4. The people managing an organisation
What is Customer Relationship
Management
(CRM)?
CRM is a comprehensive
approach for creating,
maintaining and expanding
customer relationship.
CRM is basically providing

and getting feedback from
the customers for
improving the service
provided to them.
Why CRM?
• It costs six times more to sell to new customer than to sell to an
existing one.
• A typical dissatisfied customer will tell 8-10 people
• By increasing the customer retention rate by 5%, profits could

increase by 85%
• 70% of the complaining customers will remain loyal if problem is

solved
Remember: if you aren’t listening to your customers, your

competitors will
What it does...
• Identify a company’s customers

• Create a relationship between
company & customers
• Manage that relationship to the
benefit of both
CRM Works by…
• providing and maintaining quality service by
communicating and delivering products, services,
information and solutions to address problems, wants
and needs
• Can include:
– Call handling (the maintenance of outbound and
inbound calls from customers and service
representatives)
– Sales tracking (the tracking and recording of all
sales made)
– Transaction support (the technology and personnel
used for conducting business transactions)
GOALS OF CRM
• Provide better customer service
• Cross sell products more effectively
• Company can get continuous feedback

• Simplify marketing and sales processes
Components of CRM
• Satisfied customers pay off…
Examples of CRM: –
• DOMINO’S PIZZA:-
If any person orders a
pizza , then domino’s
will deliver that pizza
within 30 min. of time ,
else the pizza will be
free of cost.
• Many automobile
companies provide post
purchase services to their
customers , such as they
provide free 1st three services
to their customers .
• L.G Electronics:- If any
problem occurs in the LG
product, then they provide
service within 2 hr.
• Many retail stores such as PANTALOON,
WESTSIDE, LIFE-STYLE, etc provide post
purchase services to their customers , they
provide membership card to their customers.
When there is any sale in their stores they send
invitation to their customers.
Four Aspects of CRM
1. Active CRM
2. Operational CRM
3. Collaborative CRM
4. Analytical CRM
Active CRM
Centralized Data Store

Ordering Information Customer details, and
Business Prospects all stored in a single
system.
Single centralized data store helps to organize
data efficiently
Example:-
• There are many Township companies such as
ANSAL, OMAXE etc which build the houses for all
categories of people, they maintain common data
base of their customer, & according to their budgets
they provide them with the houses.
Advantages
Improved Customer Relationships
Automated Business Tasks and Processes.
Targeted Marketing Campaigns

Operational CRM
• Operational CRM generally refers to the

products, services and operational capabilities
that enable an organization to ‘take care of its
customers’
Example:-
• In the Telecommunication
sector there are many
companies, but AIRTEL is
the best of all these ,
because airtel provides full
customer satisfaction .
Benefits of Operational CRM
• Optimize waiting Time

• Reduce costs & Capacity planning
• Solve problems quicker

• Gain a 360-degree view of your customer
while you are interacting with them
Collaborative CRM
• Emphasis on direct Interaction with customers
– Internet
– Email
– Automated phone/ Interactive voice
response
Example:-
• DELL allows his customers to directly
communicate with them. By this they come in
close touch with their customer & they can
give full customer satisfaction to their
customers.
Objectives
Cost reduction by
using automated
systems.
Service
improvements
through efficient
consumer response.
Analytical CRM
Analytical CRM aids the preparation, support,

and optimization of customer oriented decision
processes
Goals of Analytical CRM:

Analysis of customer behavior to aid product
and service decision making (pricing, new
product development)
Example:-
• ROLLS ROYCE manufacture there cars according

to their customers requirements .If their customer like
the wooden interior then they customize the car &
wooden interior is added in their cars ,if their
customer needs any other special features these are
also added in the cars.
Analytical CRM Benefits
• Employees can easily share sales and order

information as well as support information and use it
to identify top customers .
CRM Strategies
Customer Acquisition
Gain the greatest number of new “Best”
customers as early in their “lifespan” as
possible.
Customer Retention
Retain and expand your business and
relationships with your customers through
servicing.
Customer Loyalty
Offer programs to ensure that your customers
Cost Reduction
Reduce costs related to marketing, sales,
customer service and support
Improve productivity
Ways to Ensure Optimal Benefits
Create a
Have a CRM- Build a
customer
friendly customer
focused
organizational information
business
structure environment
strategy
Benefits of CRM
• Improved customer retention & loyalty- customers
stay longer, buy more & more often.
• Higher customer profitability – lower cost in
retaining customers, no need for more
recruitment .
• It offers customers an insight into the Company.
• It builds a long-term relationship with customers
and maximises revenue.
Benefits of CRM
 Research has shown that companies that create

satisfied, loyal customers have more repeat
business, lower customer-acquisition costs and
stronger brand value.
 Which equals better financial performance.
 Check this out... → → →

References
http://crm-daily.newsfactor.com/
http://www.destinationcrm.com/
http://searchcrm.techtarget.com/
http://crm.ittoolbox.com/
http://www.crmguru.com/
Wikipedia website

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CUSTOMER RELATIONSHIP

DALIP RAI 500902009

To: Finding product

CRM is basically providing

• A typical dissatisfied customer will tell 8-10 people

• By increasing the customer retention rate by 5%, profits could

• 70% of the complaining customers will remain loyal if problem is

Remember: if you aren’t listening to your customers, your

• Identify a company’s customers

• Company can get continuous feedback

Centralized Data Store

Improved Customer Relationships

Automated Business Tasks and Processes.

Targeted Marketing Campaigns

• Operational CRM generally refers to the

• Optimize waiting Time

• Solve problems quicker

Analytical CRM aids the preparation, support,

Goals of Analytical CRM:

• ROLLS ROYCE manufacture there cars according

• Employees can easily share sales and order

 Research has shown that companies that create

 Which equals better financial performance.

 Check this out... → → →

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