Customer relationship management

Made by: Bhupinder Kaur S.D.College, Ambala Cantt

Components of CRM

customer

Relationship

management

CUSTOMER RETENTION STARTEGIES / PRICIPLES OF CRM

• Know your target group• Principle of personalization• Acquire and retain customer loyalty

through personal relationship• Delivering high quality goods and services • Offering excellent customer services• Reward regular / loyal customers• Frequent change of displayed goods • Understanding the “customer first, profit

next”concept

Increase in sales

revenue

Increase in profits

Reduction in marketing cost

Improvement in customer satisfaction

Help in identifying

selling opportunities

Increase in customer retention

Proper contact with target customer

Helps in identifying

add on selling opportunities

Better understanding of customers

Decreased cost for customers

Increased customer satisfaction

Timely delivery of products

Personalization and closeness

Availability of wide variety of products

Customer relationship management process

Collecting customer data

Analyzing customer data & identify target

customers

Implementing CRM programs

Developing CRM programs

learning

action

1. Collecting customer data

• Personal details of the customer

• Purchase pattern• Mode of buying• Response to marketing

2. Analyzing customer data and identifying target customers

Two techniques

Data mining Market basket analysis

Market basket analysis For example, maybe people who buy flour and

casting sugar, also tend to buy eggs (because a high proportion of them are planning on baking a cake).

Identifying target customer

Identification

Lifetime value Customer pyramid RFM analysis

customer lifetime value (CLV)

• metric that represents the total net profit a company makes from any given customer. CLV is a projection to estimate a customer's monetary worth to a business after factoring in the value of the relationship with a customer over time. CLV is an important metric for determining how much money a company wants to spend on acquiring new customers and how much repeat business a company can expect from certain consumers

customer pyramid

Platinum

Gold

Iron

Lead

RFM analysis R

ecency

frequency

Monetary analysis

Implementing CRM programs

Process data analysis

CRM process pre planning

Customization of the existing system as per CRM

Prototype testing

Quality assurance testing

Final implementation

Continuous support