CRM Unit - I.pptx
- 2. SYLLABUS • UNIT - I - INTRODUCTION Definitions - Concepts and Context of relationship Management – Evolution - Transactional Vs Relationship Approach – CRM as a strategic marketing tool – CRM significance to the stakeholders.
- 3. MEANING Customer Relationship Management is an upright concept or strategy to solidify relations with customers and at the same time reducing cost and enhancing productivity and profitability in business.
- 4. DEFINITION A CRM system is not only used to deal with the existing customers but is also useful in acquiring new customers. The process first starts with identifying a customer and maintaining all the corresponding details into the CRM system which is also called an Opportunity of Business.
- 5. CONCEPT AND CONTEXT OF RELATIONSHIP MANAGEMENT Relationship Management by an organization can be divided into two categories • External relations • Internal relations
- 6. EXTERNAL RELATIONSHIP • Customer relations • Supplier relations
- 7. CUSTOMER RELATIONS • customer relations can be defined as the process by which companies promote customer satisfaction and loyalty. • It involves managing communications with customers, particularly customer‘s questions and complaints and solving their disputes. • The ultimate goal of customer relations program is to build long term relationships. • Building a strong reputation for the brand and company.
- 8. SUPPLIER RELATIONS • All companies tries to build a strong relationship with their suppliers. • Supplier relationships are different from simple purchasing transactions in several ways. There can be a sense of commitment to the supplier. • Eg: vendor (seller) sells certain items to the buyer for several times then he thinks that he will come for a next time purchase.
- 9. INTERNAL RELATIONSHIP • It is an integrative process with in a system for fostering positive working relationship in a developmental way in a climate cooperation and achievement. • Internal relationship is an on-going process that occurs strictly within a company or organization. • Internal relationship helps to motivate and empower employees at all levels of management and its consistently deliver a satisfying customer experience.
- 10. • Features of internal relationship management • Customer commitment is earned in a social contract • There is a open ideas for mutual gain • Close partnership between suppliers and customers. • Customers are viewed as individual people and so are value providers. • Continuous interaction and dialogue between suppliers and customers. • Focuses on discovering, creating and responding to customer needs.
- 11. ROLE OF INTERNAL RELATIONSHIP MANAGEMENT • MANAGEMENT OF CHANGE: Introduction of IT & new management practices. • BUILDING CORPORATE IMAGE: The team develops corporate image among the employees. • STRATEGIC INTERNAL MARKETING: The CRM team solve an inter departmental conflict and work common benefit of the organisation.
- 12. • Relationship between companies and customers • Reducing marketing costs • Better customer insights • Life time value(LTV)
- 13. EVOLUATION OF CRM • The changes in market demand and competitive strategy forced the company to change from transactional marketing to relationship marketing. • Marketing mix was developed in the 1950s in order to of marketing helps to explore increased demand of the company
- 14. • The objective of transactional approach of marketing is to sell more products and services to maximize sales and profit. • The beginning of globalization of markets, new competitions led to the greater customer choice. • Companies must move from a short-term transaction oriented goal to long term relationship building goal. • Companies are compete successfully in domestic and global markets including customers, distributors, employees, unions and governments.
- 15. • The increased importance of relationship marketing also led to an increasing demand for an efficient customer relationship management. • Customer knowledge is required to satisfy their customers and reach the ultimate goal of a company. • Create customer knowledge and the utilization of the customer relationship management system is essential.
- 16. TRANSACTIONAL Vs RELATIONSHIP APPROACH TRANSACTIONAL APPROACH Transactional marketing strategies focused on attracting consumers. The goal was to identify prospects, convert them to customers, and co realize that, although it remains important, attracting new customers is truly an intermediate step.
- 17. RELATIONSHIP APPROACH Relationship marketing gives a company new opportunities to gain a competitive edge by moving customers up a loyalty hierarchy from new customers to regular purchasers, then to loyal supporters of the company and its goods and services, and finally to advocates who not only buy the company‘s products but recommend them to loyal ones, companies generate repeat sales.
- 18. Key points of Transactional Approach • Transactional marketing, which was develop. • The marketing mix has since been describe planning and implementation of marketing. • The focus on transactional marketing is shifting to focus on relationship marketing • The firms make the market fall by providing consumer packaged goods at one extreme and the services at the other.
- 19. Key Points of Relationship Approach • Transactional marketing approach is on individual transaction and does not concern continuous relationship with customers. • Transactional marketing does not contain a strategic long term perspective. • The relationship marketing focuses on continuous multiple transactions rather than isolated individual transactions. • It also considers customer as insiders to the business and aims to build a long term and never-ending relationship with them.
- 20. CRM AS A STRATEGIC MARKETING TOOL • Generation and servicing more loyal customers. • Expansion of customer base • Reduction of advertising costs • Increase in profitable customers • Ease in introduction of new products • Personal Information Gathering and Processing, Self-Service.
- 21. • CRM is the marketing management practice of identifying, attracting and retaining the most valuable customer to sustain profitable growth. • CRM is the process of making and keeping customers and maximizing their profitability, behaviours and satisfaction. • First time customer can become a repeat customer, thereafter a client, then an advocate and finally one‘s partner in progress.
- 22. • Existing customer deliver most of the revenues. • It‘s very important part of CRM is to identify the Most Valuable Customers (MVC) for the success of the business. • Customer success always equal to business success.
- 23. CRM SIGNIFICANCE TO STAKEHOLDERS Four main stake holders play a major role in the entire process of customer relationship management they are: 1. Customers 2. Employees 3. Suppliers 4. Partners
- 24. CRM SIGNIFICANCE • Perpetual stream of revenue • Positive referral creation • Provides premium • Helps customer retention • Lowers cost of sale • Helps understanding consumer behavior
- 25. • Provides opportunity to cross-sell and up-sell • Reduces marketing time • Channel cost rationalization • Enables business process re-engineering.
- 26. Unit- I Completed Thank You