Customer

Relationship
Management and e-
business
Presented by
Sapna Cathrine Anthony
Satpal Singh Gandhi
Satyendra Chandra Pandey
 Definition of CRM
• As a software package, System or
Technology.
• As data storage and analysis.
• As culture change with in the
organization itself.
• As a Management practice that
Focuses on Relationship as
opposed to Transaction.
• As a practice that manages Demand.
• As a strategy that focuses on
 Definition of CRM
 According to Peel ,
 CRM is the automation of horizontally integrated business
processes involving front office customer touch point-sales
(contact management , product configuration ), marketing
(campaign management , marketing ), and customer service (called
data center, field service)-via multiple, interconnected
delivery channels (telephone, email, Web, direct interaction).
The CRM application architecture must combine both operational
(transaction -oriented business process management )
technologies as well as analytical (data mart-centered
business performance management) technologies.
 Purpose (Objective) of CRM
• Identification of potential customers,
• Understanding of customers needs, both
current and latent,
• Differentiating from profitable from
unprofitable customer and segments,
• Decreasing attrition by increasing value
and satisfaction,
• Increasing Usage of current products and
services.
The tangible Components of CRM: A. 5 key areas of CRM

Marketing Sales Customer Services

FRONT OFFICE

Mining and Analysis

CRM CRM system
Measures Rules Physica
l
& Business Intelligence Link
Work- system
flow

Data Warehousing

Back Office and External Systems

The tangible Components of CRM…
B. Multichannel marketing,
C. DATA/Data warehouse/Data mart/data mining.
D. Touch points,
E. Call center,
F. Sales Force Automation,
G. 3600- View


Important Business Constructs

Related to
CRM

1. Customer Lifetime Value (CLV) and Second Lifetime value

(SLTV)
2. Privacy
3. Customization Vs. Personalization
4. RFM (Recency, frequency, monetary value)
Approaches to CRM: Data driven modal

Analysis Evolve
Customer Implement
Customer And CRM
Intelligenc Strategie
Data processin strategie
e s
g s

Evalua
te
And
Modify
Approaches to CRM: Process driven CRM
modal

Initia Transi
tion tion Pre- Servic Post
Of to servic e servic
Servic servic e e
e es

Customer Knowledge Evalua

Knowledge Management te
Database System
 Definition of Customer
Relationship Management
 “A management process of acquiring
customers by understanding their
requirements, retaining customers by fulfilling
their requirements more than their
expectations and attracting new customers
through customer specific strategic marketing
approaches. The process invites total
commitment on the part of the entire org in
evolving and implementing relationship
strategies that would be rewarding to all
concerned”
 NEED FOR CRM

• Reduction in customer recruitment cost

• Generation of more and more royal
customer
• Expansion of customer base
• Reduction in advertisement & other
sales promotion expenses
• Benefiting customer selectivity
approach
• Increase in number of profitable
customers
• Easy introduction of new products
• Easy business expansion possibilities
CRM as Business Strategy
 CRM Components
• CRM’s can be broken down into three
key components.

Front Office Operations (sales, marketin

mers (email, letters, phone, meetings, fax etc)

Enhance Company Relationship wi

CRM Life Cycle
Evolution Of CRM
CRM Application through Channel
CRM Processes and Systems
Challenges in CRM
q Richness of customer Data
q Analysis of customer Data
q Convenience of interacting with customers
q Consistency of communication
q Intelligence at operational touch points
q Feedback mechanism from customer
q Integrated view of customer Information
q
E– CRM

 E- CRM implies an additional means of
communication and level of interaction with the
customer where there is a real difference in
the technology and its architecture, which
allows for ease and self service to customers.

Need of e-CRM


Due to the introduction of new technology



Due to globalization
 (to satisfy the customers at global level)
 Sometimes customer itself prefer to do online
purchasing.


Basically e-CRM is concerned with attracting &

keeping economically valuable customers &
eliminating less profitable ones.
 Difference Between CRM And e-CRM
CRITERION CRM e-CRM
Customer Contacts Traditional Means- Through Internet, E-
Retail Store, Telephone Mail, Wireless, Mobile
Or Fax And PDA Technologies

System Interface Works With Backend Designed For Frontend

Application Through As Well As backend
ERP System Applications Through
ERP, Data Mart And Data
Warehouse

System IT Requires PC Clients Here, Browser Is The

To Download Various Customers Portal To e-
Applets And CRM
Applications.
 Contd..
CRITERION CRM eCRM
Customization and Different People Personalized Views
Personalization Require Based On Purchase Are
Different Information Possible.
But Personalized Views
For Different Audience
Are Not Possible Here
System Focus System Is Designed System Is Designed
Around Product And Job Around The Customers
Functions. Here, Need. Enterprise Wide
Applications Are Portals Are Designed
designed Around One And Not Limited To A
Department Or Business Single Department.
Systems Maintenance And Unit .
Implementation Is System Implementation
Modifications Longer And Costly. Require Less Time And
Cost.
Process of e-CRM
Benefits Of e-CRM
ü Convenience
ü
ü Improvement in overall quality of customer experience


ü Increased profitability. According to Anderson consulting a typical $1b

company
 can gain up to $130 million through ECRM.


ü Another study shows that 10% gain in repeat customers can add about 10% in
 the company’s profit.
ü
ü Increased customer loyalty. It include personalization concept of time saving.
ü
ü More effective marketing.
ü
ü Improved customer service and support.
ü Through ECRM right tools helps sending right orders to right customers at right
time.
ü Greater efficiency and cost reduction.
Strategic Importance to your business Plan
Categorizing Customers

*You have no choice but to handle *Cultivate relationship.

H them very carefully.
Will consume energy.
Spend energy
Go out of your way
i #Think of innovate ways of getting # Think of strategies to move
g them on your side, but the cost of
acquisition must be controlled
them away from competition
h Will consume disproportionately
high energy

* Focus on short term profitability * Very cautious decision needed

Spend minimum energy to meet Re-examine business plan &
your objectives strategy. Evaluate that your loss
# Don’t pursue does not become nightmare for
Use opportunity as it comes you
L Short term acquisition should not # Needs in-depth strategic review
o affect as acquisition alone and
dissatisfaction later could be more
w Long term image harmful

Low High
Profitability Potential

* Existing Customer # Potential Customers

 CRM Solution Architecture
Innovation

Co- creation/
Social Networking Production Differentiation
Markets /
Ideation Platform Personalization Service Virtualization
Incentivizing/ Randomization

Collaborative Layer
Face to Face Contact Centre Self Service

Branch Rep. Phone Paper E- mail Fax Chat Web IVR Kiosk Mobile

Operational Layer
Lead Management Campaign Management Service Management

INTEGRATION LAYER

Insurance Core System

New Business Policy Servicing Claims Administration Distribution Management

Analytical Layer
Customer Segmentation Customer Profitability Customer Loyalty
Pitfalls

• Huge money is required to implement ECRM.

•
• Highly knowledge requiring process.
•
• Results are not according to expectations.
•
• Sales and Marketing are reluctant to adopt new
automated CRM system.
CRM: Not A Panacea
Not feasible for every market and customers
customers don’t want to be committed to every
brand/relationship
Not feasible for low-involvement, habitual purchasing
in B2B or B2C
Some markets/customers may have low “personalization
potential”.


Shopping agents used by consumers undercut the idea

of relp’s.


The organizational capability to produce a

seamless/personalized experience is more difficult
to master than a transactional approach.


Lower tier customers may become disaffected when

they find out service is differentiated.



 Thank You



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