1. CUSTOMER RELATIONSHIP MARKETING
WHERE IS THE NEED FOR CRM?

2. What is Marketing Management?
Marketing management is the
art and science of choosing target
markets and getting, keeping, and
growing customers through creating,
delivering, and communicating
superior customer value.

3. Factors Influencing Marketing Strategy

4. Marketing Mix and the Customer
Four P’s
Product
Price
Place
Promotion
Four C’s
Customer solution
Customer cost
Convenience
Communication

5. New Mix Areas: Relationship
Product policy:Value determined by Interactions - relationship specific offering
Pricing: Each relationship is an investment in the customer Lifetime Value
Communication: Learning from the communication with customers
Distribution: The moment of truth

6. CRM is a holistic approach that utilises customers’s insight

7. Types of CRM
Strategic: It is a core customer centric business strategy that aims at winning and keeping profitable customers.
Operational: automation of customer facing processes e.g. selling etc
Analytical : intelligent mining of customer related data for strategic or Tactical purposes
Collaborative: It applies technology across organizational boundaries with a view to optimizing company partner and customer value.

8. CRM Defined
It is the core business strategy that integrates processes and functions, and external networks, to create and deliver value to targeted customers at a profit.
It is grounded on high quality customer related data and enabled by information technology

9. MODELS of CRM IDIC Gartner Competency Model The CRM Value Chain
Paynes Five Process Model

10. Framework for CRM- Peppers and Rogers (IDIC)
Identify prospects and customers
Differentiate customers by needs
and value to company
Interact to improve knowledge
Customize for each customer

11. Gartner Competency Model

12. Gartner Competency Model

14. Features of a customer centric culture
Identifying which customers to serve
Understanding customers’ current and current and future requirements
Obtaining and sharing customer knowledge across the company
Measuring customer results: satisfaction, retention, future buying intention, referral behaviours (word-of-mouth), share of wallet
Designing products and services which meet customers’ requirements better than competitors
Acquiring and deploying resources (information, materials, people, technology) that create the products and services that satisfy customers
Developing the strategies, processes and structure that enable the company to meet customer requirements

15. Model of a customer centric culture
Customer-centric organisational culture
leadership
formal systems
employee
experience
employee
behaviour
customer
experience
Internal
relationships

16. The role of data in CRM Data are needed for 2 applications
Business operations
Order processing; Enquiry handling; Invoicing
Analysis
Customer portfolio analysis; Churn analysis
Data are used across all 5 stages of the CRM Value Chain
Data for CRM need to be of appropriately high quality, i.e higher for operational CRM applications than analytical CRM applications

17. People are important for CRM success
People develop the CRM strategy
People select & implement the IT solution(s)
People need to coordinate with each other across functions to make CRM work
People contribute importantly to customer satisfaction and retention when they interact with customers
People may resist changing established work practices

18. Understanding business processes
Processes are ‘how things are done’
Processes can be classified as
Vertical and horizontal
Front-office and back-office
Primary and secondary
CRM processes include all customer-facing (front-office) processes within sales, marketing and service functions

19. Typical analytical CRM processes
Customer profiling process
Opportunity management process
Campaign management process

20. Campaign management process
Customer phones in
Check scores
Buy product
Offer product to high scores
Open account on phone
No interest 2
Send application form 7 42
Out bound phone follow-up 7
Check account balance
Mail follow-up
Do nothing
(numbers are days)

21. Questions about CRM processes
What are the important processes from a CRM point of view?
How is the present process designed?
What does it contribute to the achievement of CRM objectives?
What do its customers, internal and/or external, receive from and think about the process?
What process performance measures are in place?
Cost, time, accuracy, satisfaction
Can the process and its outcomes be improved?

22. Order fulfillment: cross-functional process flowchart

23. Process evaluation
Process rating
Best practice (superiority)
The process is substantially defect-free and contributes to CRM performance. Process is superior to comparable competitors and other benchmarks
Parity
A good process which largely contributes to CRM performance
Stability
An average process which meets expectations with no major problems but which has major opportunities for improvement
Recoverability
The process has identified weaknesses which are being addressed
Criticality
An ineffective and/or inefficient process in need of immediate remedial attention

24. CRM value chain II Customer profitability
Customer Customer Network Value Manage Portfolio Intimacy Development Proposition the Analysis (SCOPE) Development Customer Lifecycle
Customer
Market segmentation
Sales forecasting
Life-time value
Customer analysis toolkit
-SWOT/ PEST/ forces/ BCG matrix
Customer database development
Internal data
Data enhancement
Data warehousing
Data mining
Benchmarking
Privacy
Database technology and software
Network management
Internal buy-in
External network
-suppliers/ investors/ partners
Network position
E-commerce
-EDI/Extranets/ portals -
Sources of customer value
-4Ps/7Ps customisation
Customer experience
Process reengineering
self-manufacture self-service
People issues
Technology enablement
Customer acquisition
-who/how/what? KPIs
Customer retention
-who/how? KPIs exceed expectations/ add value/ social and structural bonds/ commitment
Customer development
-who/what/how? KPIs
Organisation design
-physical/virtual? KAM/cross functional teams
Metrics
profitability

25. Data repository and information management process drive customer insight

26. CRM as a set of cross functional process

27. Case Discussion
What Serves the customer best?
Key issues

28. What Serves the customer best
How many times must they hear from the company in a single year? It’s a constant quest to stay on consumers’ radar screens. If we aren’t somehow in their faces on a weekly basis, they will drift.
Careful balance between front-end initiatives and product development.
Allocate its marketing funds differently between building lifetime relationships with current customers and attracting new ones.
The single-cask bottling he envisions would deliver a customized product to the company’s preferred upscale consumer. This type of offering would command higher margins, provide consumers with more individual choices, and allow them to trade up

29. What Serves the customer best
Bob’s problem isn’t that he has difficult trade-offs to make. The new approach is working. It’s the organization that’s not.
Bob should get all his stakeholders to think together about how to capitalize on this potentially breakthrough marketing idea.
Bartenders in discotheques are great for talking up new vodka drinks—but is that where someone interested in scotch goes for guidance?
Customer loyalty comes from the whole package, and Marketing’s job, in any company, is not simply to generate demand but to build brand strength and profitability over the long haul.