CHAPTER NO :01

CHAPTER NO :01INTRODUCTION TO CRM

WHAT IS CRM?CRM is the process of managing all aspects of interaction a company with its customer ,including prospecting ,sales and service .CRM application attempt to provide insight into and improve the company /customer relationship by combining all these views of customer interaction into one picture.

Business strategy that maximize profitability, revenue and consumer satisfaction through organizing customer segments, fostering behavior that satisfy customer and implementing customer-centric process.

WHAT IS CRM? CONTCRM is an information term for methodologies, software and usually Internet capabilities for helping enterprise manage customer relationships in an organized way.

TYPES OF CRM Strategic CRMOperational CRMAnalytical CRMCollaborative CRM

1. STRATEGIC CRMCore customer-centric business strategyAim of winning and keeping profitable customersDevelopment of customer centric business culture.Culture reflected in: leadership behaviorDesign of formal system of company Myth and story with in the firm

CONT.cultureDeliver value Create value Customer

CONT BUSINESS ORIENTATIONSAccording to Kotler Business orientationProduct orientatedProduction orientatedSales orientatedCustomer/market oriented

2.OPERATIONAL CRMFocus on : Automation of customer facing processes:

Selling automationMarketing automationCustomer service automation

CONT Sales Force AutomationSFA is designed to automate sales-force-related activities.lead generationLead qualificationNeed identificationProposal generation

CONT SFASelling activities Improvement of selling activitiesStandardization of selling process

CONT MARKETING AUTOMATIONMA applies technology to marketing processes.Campaign managementEvent based marketingTrigger marketing

CONT Customer service automationAllow companies to manage their service operations.It is differentiated significantly on depending on the product being servedCrm softwareCall routing software

3.ANALYTICAL CRMFocus on: Intelligence mining of customer related data for strategic or tactical purposes.It is based on customer related information.Essential part of CRM implementationIt lead companies to decide that selling approaches should differ between customer groups.

ANALYTICAL CRMCustomer point of view: Deliver timely, customized, solutions to the customer problem

customer satisfaction

ANALYTICAL CRM CONT Company point of view: prospect of more powerful cross-selling and up-selling programmes

Customer retention and customer acquisition programmes

4.COLLABORATIVE CRMApplies technology across organizational boundaries for optimizing company, partner and customer value.Strategic and tactical alignment of normally separate enterprise in the supply chain of the more profitable identification ,attraction, retention and development of customers

COLLABORATIVE CRM CONT It enable organizations to align their efforts to service customer more effectively.

Share valuable information along supply chain

PRM-enable companies to manage complex partner and reduce cost of channel management.

MISUNDERSTANDING ABOUT CRMMisunderstanding 1:CRM is database marketingMisunderstanding 2:CRM is marketing processMisunderstanding 3:CRM is an IT issueMisunderstanding 4:CRM is about loyalty schemesMisunderstanding 5:CRM can be implemented by any company

DEFINING CRMIt is core business strategy that integrates internal processes and functions and external network to create and deliver value to targeted customer at a profit.

CRM CONSTITUENCIESCompaniesCustomer and partner of those companiesVendor of CRM softwareCRM application service provider(ASPs)Vendor of CRM hardware and infrastructureManagement consultants.

CONTEXT OF CRMCommercialBanksAutomobile manufacturesHigh tech companiesConsumer goods manufacturers.Not for ProfitUniversitiesSalvation army

MODEL OF CRMIDIC MODELQCI MODELCRM VALUE CHAINPAYNE FIVE PROCESS MODELGERTNER COMPETENCY MODEL

1.IDIC MODEL

Developed by Peppers and RogersFour action to be taken by company in order to build closer one-toone relationship with customers:IdentifyDifferentiateInteractcustomize

IDIC MODEL CONT

( Peppers and Rogers, 2004)

2.QCI MODEL

Model act as a customer management model, omitting the word relationship.Model features people performing processes and using technology to assist in those activities.Product for consultancy firm .

2.QCI MODELCONT

(Hewson et all, 2002)

3.CRM VALUE CHAIN

Francis Buttle model consist of five primary stages and four supporting conditions leading towards the end goal of enhanced customer profitability.Primary stages:Portfolio analysis ,customer intimacy ,work development ,value proposition development Supporting condition:Leadership and culture, data and IT, people and processes enable the CRM strategy to function effectively and efficiently.

3.CRM VALUE CHAIN CONTThe CRM Value Chain (Buttle, 2000)

4.PAYNE FIVE PROCESS MODEL

Developed by Adrian Payne.It identifies five core processes in CRM:Strategy development process Value chain processMultichannel integration processPerformance assessment processInformation and management process

4.PAYNE FIVE PROCESS MODELCONTStrategy development process Value chain process strategic CRM Multichannel integration process Operational CRM

Performance assessment process Analytical CRMInformation and management process

4.PAYNE FIVE PROCESS MODELCONT

(Payne, 2006)

5. GARTNER COMPETENCY MODEL

By Gartner INC. It is leading research and advisory company.It suggest companies need competencies in eight areas for CRM to be successful. It include:CRM visionDeveloping CRM strategiesDesigning valued customer experiencesIntra and extra-organizational collaboration Managing customer lifecycle processesInformation managementDeveloping measure indicative of CRM success or failure.

CONT

Assignment No 1Five Model of CRMPlease read them and write a summary of two page hand written for each model and submit before next class.Matching idea, thoughts and style would be consider plagiarism and hence it would not be marked

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