Crm
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This document provides an overview of customer relationship management (CRM) implementation. It discusses: 1. The 8 steps to developing a CRM roadmap: gaining sponsorship, gathering information, assessing the current and future states, identifying value opportunities, linking opportunities to capabilities, defining projects/requirements, developing business cases, and creating a rollout strategy. 2. Emerging trends in CRM like near-field communication, location-based services, augmented reality, social media on mobile as a customer service channel, and next-generation mobile apps. 3. The "4Ps" of CRM roadblocks: process issues around modifying business processes, perception challenges of viewing CRM as enabling rather than mandatory, privacy concerns
Crm
- 1. A Presentation on Module V: Issues and Challenges in Implementation of CRM Prepared by Nilesh Sen Manohar Rathore Riddhi Mehta Jesal Kothari Jaydeep Budheliya Shekher Nirmal Amod Hardikar Submitted to Prof. Neelam Kshatriya
- 2. Topics Covered Overview of Retail CRM Implementation Road Map & Steps of CRM Implementation CRM Roadblocks (4P’s) Phased development Learning from customer defections Emerging trends in CRM Evaluating customer retention plan
- 3. “Rural or Urban, Old OR Young, Malls OR Kirana Shops & So on— People from every Nook & Corner needs everything which is available @ Retail Store.”
- 4. O V E R V I E w 5th Largest in the world. Entry of MNC—Walmart,Carrefour,Costco Major Players—Reliance, Tata, Aditya Birla Group, K Raheja Group. Accounts 12% of GDP Organized retail (8%) Traditional to Shopping Malls
- 5. 1995 • Emerging 2003 • Growth 2006 • Retail Boom 2007 • Managing it’s NO.1 Position 2008 • High Retail GOLD Rush 2010 • Continued Growth
- 6. Customer Retention and Loyalty Business Performance Visibility Developm ent Store as a Brand Improved Employee Productivity Customer Satisfaction High Customer Profitability Reduced Cost of Sales Low cost of retaining old customers
- 8. Rank Company 1 Wall mart 2 Kroger 3 Target 4 Wal Green 5 Costco 6 The home depot 7 CVS caremark 8 Lowe’s 9 Bestbuy 10 Safeway
- 9. Rank Company 1 REI 2 IKEA 3 Costco 4 Nordstrom 5 J Crew 6 The Gap 7 American Eagle outfitter 8 Anthropologies 9 H & M 10 DSW
- 11. Major Cities for Retail GoaAhmedabad Maharashtra
- 13. Definition of Customer Retention • Customer Retention is the activity that a selling organization undertakes in order to reduce customer defections.
- 14. Facts about CR Cost of acquiring a new customer Leaky Bucket Theory CRM is part of CR Customer complaint Customer satisfacti on V/S CR Why Customer switch? Lessening the Defection rate
- 16. Customer Retention plans Customer retention is increasingly becoming more and more important . Most firms offer loyal customer rewards for their loyalty. Customer portfolio analysis, customer retaining mareting mix, reorganisation for Customer retention. However many rewards program are misunderstood and often wrongly applied.
- 17. Customer Portfolio Analysis Optimal balance in customer portfolio Reduce defector by 10% Design of a portfolio Purchasing history Portfolio segment
- 18. Customer Categories Actual Sales (2012) Target sales (2013) First time customers 28% 25% Repeat Customer 40% 60% Switched away, then returned 10% 5% Last time (Defectors) 22% 10% Total 100% 100% Contd…..
- 19. Lack of Organisation al Control & Coordination Lack of Sensitivity Insufficient linkage between marketing & Operation High Customer expectation Realistic target turnover rates
- 24. Implementation Road Map A CRM Roadmap is a strategic plan that identifies how an organization can meet and exceed its customers' needs. This includes, but is not limited to, assessing how the sales, marketing and service entities work together to: 1. gain insight from their customers (e.g. purchase history, desired products/services), 2. produce valuable offerings/products (e.g. personalized product) and 3. provide the ultimate customer experience (e.g. multiple touchpoints, 360 degree view of the customer).
- 25. •So how do organizations know which CRM capabilities they have, and which they need to realize their strategic goal? •Now we will see primary steps (which have been used cross- industry, including financial services, electronics and high-tech, consumer products, manufacturing, etc.) to follow when developing a CRM Roadmap. CRM Road Map…How?
- 26. •The “sponsor” for a CRM Roadmap effort must have a vested interest in the project and ideally has P&L responsibility for the group to be impacted. •As with any project an organization undertakes that involves significant change to business processes, organizational structures, or roles and responsibilities, the lack of key, influential sponsorship reduces the effectiveness of the project, since there is no driving force for implementation.` Step 1: Gain Senior Level Sponsorship
- 27. It is critical to gain insights of various key stakeholders and decision-makers within the organization. Examples of questions that help gauge the health of the client's CRM include: • How would you define CRM? • What types of customer information is captured/tracked (acquisition/retention costs, churn, cost to serve, etc.)? • What information would you like to know about your customers that you currently do not? Done by interviewing Executives, Managers, Marketers, Front line staff… Step 2: Gather Information
- 28. •Through these meetings, we gain an understanding of the client's current CRM capabilities and significant opportunities to improve their customer relationships, and map out findings. •Also important to understand company's future direction (usually between 6 months and 2 years). •Then comparison of current state of CRM against best practices within the companies respective industry. Step 3: Assess Current state and Define Future state Gaps
- 29. •Value opportunities represent the potential benefits delivered by being more customer-centric. •Identify and categorize value opportunities along the lines of people, process and technology. •Example of a "process" value opportunity is improving data capture for all customer contacts across sales functions and touch points (e.g. phone, e-mail, etc.). •"People" value opportunities may involve additional training on service procedures for capturing customer data. •"Technology" value opportunities might include developing a data warehouse. Step 4: Identify Value Opportunities
- 30. •After determination of where the value opportunities lie. Identification of which strategic CRM capabilities are needed. •Below is a sample of link between a specific value opportunity and its corresponding strategic CRM capabilities: •Value Opportunity : • Improve customer understanding •Strategic CRM Capability: • Possess good knowledge of the customer • Leverage customer information from the service process • Understand customer profitability and cost-to-serve. Step 5: Link Value Opportunities to strategic CRM Capabilities
- 31. •Once value opportunities are prioritized, specific CRM projects need to be developed. Defining and executing CRM projects will ensure the company masters the relevant strategic CRM capabilities. •An effective way to define relevant projects is through brainstorming sessions with the client. Samples of the outcome of a session might include: • Understand customer profitability • Enhance call center operations by implementing sophisticated touch-point technologies • Establish a data warehouse • Improve sales force training Step 6: Define CRM Projects and Requirements
- 32. •Once the projects and requirements are defined, it is necessary to develop the business case to support or refute the criticality of a specific project. The business case seeks to justify the money investment needed and the ROI. Each business case should include: • Details and costs of required resources (people, technology, training, outsourced resources, etc.), • Projected duration of time of each project. • Potential benefits •For example, a typical CRM investment ranges from $10 to $25 million (or more) over a three to five year period. The amount is wholly dependent upon how many initiatives have been identified and how extensive those initiatives are. Examples: • Marketing Insight initiative Step 7: Develop Business Case
- 33. •Developing a roll-out strategy enables organizations to focus their resources, money and time on the most important projects that help them become customer driven. •Prioritization and phasing of projects is conducted with the executive team, a process in which they evaluate the results of the business cases, and consider for each project's financial results, duration, level of effort required, and technical impact. •Critical Success Factors Step 8: Develop a Roll-out strategy
- 34. •Achieving success in developing intimate and enduring relationships with customers begins with a holistic consideration of an organization's functions and abilities that affect its consumer's objectives. •Developing a CRM Roadmap therefore, is a continuous process and not just a one-time exercise, because customers' needs and preferences change constantly. •The correct strategy can help your organization form deeper relationships with its consumers, and also obtain a competitive advantage in the marketplace. A Final Thought...
- 35. Emerging Trends in CRM 1. Near-field Communication 2. Location-based Services 3. Augmented Reality 4. Social Media on Mobile & Social Media as Customer Service Channel 5. Next Generation Mobile Apps
- 36. 4Ps of CRM Roadblocks • Process • Perception • Privacy • Politics
- 37. Process • Companies are slow/unwilling to modify business process to support both customer relationship comfort zone of staff OR customer old way of doing things, tentative responsibilities etc.--Sleepary Scope.
- 38. Perception • CRM must be viewed as job enabler not as latest in the series of doctrine to be implemented corporate policies. • People are made to believe that they should be able to accomplice the test in less time and purpose new task as well.
- 39. Privacy • Understand the quid procque are more lokely to share their personal informationwith the company if they
- 40. Politics ?????
- 41. THANK YOU