CUSTOMER RELATIONSHIP MANAGEMENT

“CRM is an IT enabled business strategy, the outcome of which to optimize profitability, revenue and customer satisfaction by organising around customer segmentation, fostering customer satisfying behavior and implementing a customer-centric process” -Gartner Introduction

DIFFERENCE BETWEEN MM AND CRM MARKETING MANAGEMENT CRM Goal: Expand customer base, increase market share by mass marketing Goal: Establish a profitable, long-term, one-to-one relationship with customers; understanding their needs, preferences, expectations Product oriented viewCustomer oriented view Mass marketing / mass productionMass customization, one-to-one marketing Standardization of customer needsCustomer-supplier relationship Transactional relationshipRelational approach

OBJECTIVES Improve Customer Satisfaction Retain Existing Customer Provide Strategic Information Improve Customer lifetime Value

STRATEGIES Interaction Value of Customers Continuing Process Overview Model CRM Develpment

INTERACTION Touch Points To synchronize different access points in the firms to provide a unified message to customer at each interaction point. By knowing and working with all the interaction points the goal is to improve the customer experience with the firm.

THE VALUE OF CUSTOMER MARGIN NO. OF CUSTOMERS REVENUE 70% 20% 10% 15% 25% 60% 45% 35% 20%

Cont. Customer Life Time Value –Profit margin Annual profit minus cost to serve the customers –Retention rate Estimation of total amount of customer who make repeat purchases –Discount rate Current cost of capital –Time How long customer is expected to the company According to Wreden : customer value = (gross revenue) – (customer allowences) – (credits and rebates) – (product cost) - (channel cost) - (cost to serve) - (administrative cost)

CONT. According to Xu and Walton: High PROFITABILITY Low Low High COST VERY HIGH VERY LOW

THE CONTINUING PROCESS Successful companies build systems that enable corporation to use customers information wisely and deliver what customers wants at their own level. Increase in customer loyalty –Full information about customer profile and previous preferences instantly available to sales and service representatives when a customer calls. Superior service –Customer representatives can provide personalized service, offer new product and services based on customer purchasing history. Superior information gathering and knowledge sharing –The system is updated each time when a customer contacts the organization, whether the contact is by the person or phone or via web sales. Marketing service and technical support have access to the shares database.

OVERVIEW MODELS Customer Life Cycle Customer Management Activities Targeting conversion Getting to know Delivering the basics Retention activity Value developme nt Managing dissatisfacti on Win back

CONT. Acquisition Targeting –Identifying channels to reach customers, finding influencers and prospcts for future sales Conversion –Capturing enquiries through all possible channels –Distributing sales leads to sales department, leads which can come from alll parts of departments Getting to know –Identifying new customers, learning about them Penetration Delivering –Key account management –Data collection Retention activity –Analyze the probability of keeping the customers –Build and understand the customers –Encourage customers to be involved

CONT. –Appoint responsibility of individual customers –Reward customer loyalty Value development –Analyze who the customer is and how the relationship and product can be developed to provide further value to customer and firm. Retention Problem management –Create a complaint process –Define the problems –Find the root cause Win back –Last minute lost prevention –Solving the identified problems and tell them about it –Deal with defecting customers

CRM DEVELOMENT Planning Research System Analysis Design Construction Implementation Maintenance and Documentation Adaptation

CRM CHALLEGES Defining Clear Objectives Appointing a Core CRM Team Defining the Processes Finding the Right Partner

THANK YOU TEAM MEMBERS : FATIMA KHALID SAJID WAQAR ZAIDI KASHIF JAMAL ADIL CHAUDHARY IMRAN PASHA ZAHEEN ANSARI