Overview Of CRM
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The document outlines the learning objectives of a Customer Relationship Management (CRM) course, emphasizing the concepts of CRM, eCRM, and their differences from traditional and database marketing. It highlights the importance of using strategies and technology to foster customer relationships, increase sales, and enhance customer satisfaction over time. Additionally, it distinguishes between CRM and eCRM while discussing the benefits and assumptions of CRM, including the importance of customer retention and the role of technology in modern marketing approaches.
Overview Of CRM
- 2. Learning Objectives At the end of the course, participants should be able to do the following: Explain the concepts of CRM Explain the concepts of eCRM Identify the difference between CRM and Traditional Marketing Identify the difference between CRM and Database Marketing Identify the relationship between CRM and eCRM
- 3. “Customer Relationship Management is a comprehensive strategy and process of acquiring, retaining and partnering with selective customers to create superior value for the company and the customer.” - Parvatiyar and Sheth
- 4. “Customer relationship management is about attracting, developing, maintaining and retaining profitable customers over a period of time.” - Massey, Montoya-Weiss & Holcom
- 5. “CRM relates to strategy, managing the dual- creation or value, the intelligent use of data and technology, the acquisition of customer knowledge and the diffusion of this knowledge to the appropriate stakeholders, the development of appropriate (long-term) relationships with specific customers and/or customer groups and the integration of processes across the many areas of the firm and across the network of firms that collaborate to generate customer value.” - Boulding, Staelin, Ehret and Johnston
- 6. CRM versus Traditional Marketing Traditional marketing focus on the four Ps (price, product, place and promotion) for increasing market share through increase in the volume of transactions between seller and buyer. While customer relationship management focus on using strategies, procedures, tools and technology for promoting the relationship between the seller and customer so as to increase sales revenue, profitability and customer satisfaction.
- 7. Attributes of Market Exchanges Attribute Marketing Through 4Ps Transactions Marketing Through Relationships, Networks, and Interactions 1. Actors The buyer has a generic need and the seller has a generic offer The buyer has a particular need, and the seller has a unique offer 2. Nature of marketing exchange The products or services are standardized The products or services are customized 3. Interaction between actors The interaction between actors are characterized in terms of, for example, power, conflict and control The interaction between actors are characterized in terms of, for example, trust, commitment and cooperation 4. Duration of marketing exchange The duration of marketing exchange is independent and discrete The duration of marketing exchange is on-going 5. Structural attributes of market place The structural attributes of market place is characterized as an anonymous and efficient market The structural attributes of market place is characterized in terms of numerous networks to a network approach 6. Marketing approach The marketing approach is the 4Ps or the marketing mix The marketing approach is marketing through relationships, networks and interactions Source: Lindgreen and Antioco, Customer Relationship Management
- 9. Business Drivers of CRM • Averagely, the cost of retaining a customer is less than that of acquiring a new one. • A dissatisfied customer may become aggressive opposition • Advances in electronic commerce provides wide range of relationship opportunities for boosting customer loyalty and satisfaction
- 10. Assumptions of CRM • Current information is right • Consumers prefer individual, differentiated treatment, services and products • The future behaviour of consumers depends on their past behaviour
- 11. Myths of CRM Successful CRM needs complete customer data and a very large database CRM is a gigantic project Very good CRM technology system guarantee excellence in business Segmentation is a prerequisite to CRM CRM needs highly advanced analytics
- 12. Key Cost Goals of CRM & Action Points • Trim down cost of sales and distribution - Deploy web applications for reducing sales force - Manage customer relationships instead of products - Use focused advertising to target customers • Boost sales revenue growth by increasing customer satisfaction - Enhance sales by cross-selling - Enhance sales by up-selling • Reduce customer support costs - Provision of appropriate level of information to customer facing personnel - Call center automation for easy access to information • Reduce cost requirements for customer satisfaction - Manage customer experience - Deploy customer profitability analytics
- 13. CRM versus Database Marketing Database marketing is a company-centric technique which focus on using discount programmes and promotions to sell more products to customers for less cost: Therefore it’s difficult to use it for building customer loyalty. While Customer relationship management focus on enduring relationship with customers by identifying and providing customer values in the context of customer’s viewpoint and not based on the company’s opinion: Therefore it’s easy to use it for building customer loyalty.
- 14. eCRM eCRM involves matching and blending people, processes and technology for enabling an organisation to attract, retain and partner with customers to facilitate enhancement of value to both customers and the organisation.
- 15. CRM versus eCRM The infusion of applicable electronic technology including database-driven software, business intelligence and web systems to the customer relationship strategy of a firm so as to achieve established objectives depicts eCRM. While CRM focus on the generic application of a firm’s customer relationship strategy in achieving established objectives.
- 16. Customer relationship management provides opportunity for expectations of customers to be properly identified, explored and used for controlling value proposition with the aim of increasing customer satisfaction.
- 17. Customer Expectations Versus Experienced Service Model A Model B
- 18. Benefits of eCRM to a Firm • Transaction security • Personalized services • Relationship with customers • eMarketing • Using email for communication • Enhanced workflow • Large data storage • Advanced analytics • Time efficiency
- 19. Benefits of eCRM to Customers • Convenience • Confidence • Service quality • Transaction process speed • Structured interaction
- 20. Steps for Achieving Goals of CRM • Customer Identification • Customer Differentiation • Customer Interaction • Customization
- 21. Dr Elijah Ezendu is Award-Winning Business Expert & Certified Management Consultant with expertise in Interim Management, Strategy, Competitive Intelligence, Transformation, Restructuring, Turnaround Management, Business Development, Marketing, Project & Cost Management, Leadership, HR, CSR, e- Business & Software Architecture. He had functioned as Founder, Initiative for Sustainable Business Equity; Chairman of Board, Charisma Broadcast Film Academy; Group Chief Operating Officer, Idova Group; CEO, Rubiini (UAE); Special Advisor, RTEAN; Director, MMNA Investments; Chair, Int’l Board of GCC Business Council (UAE); Senior Partner, Shevach Consulting; Chairman (Certification & Training), Coordinator (Board of Fellows), Lead Assessor & Governing Council Member, Institute of Management Consultants, Nigeria; Lead Resource, Centre for Competitive Intelligence Development; Lead Consultant/ Partner, JK Michaels; Turnaround Project Director, Consolidated Business Holdings Limited; Technical Director, Gestalt; Chief Operating Officer, Rohan Group; Executive Director (Various Roles), Fortuna, Gambia & Malta; Chief Advisor/ Partner, D & E; Vice Chairman of Board, Refined Shipping; Director of Programmes & Governing Council Member, Institute of Business Development, Nigeria; Member of TDD Committee, International Association of Software Architects, USA; Member of Strategic Planning and Implementation Committee, Chartered Institute of Personnel Management of Nigeria; Country Manager (Nigeria) & Adjunct Faculty (MBA Programme), Regent Business School, South Africa; Adjunct Faculty (MBA Programme), Ladoke Akintola University of Technology; Editor-in-Chief, Cost Management Journal; Council Member, Institute of Internal Auditors of Nigeria; Member, Board of Directors (Several Organizations). He holds Doctoral Degree in Management, Master of Business Administration and Fellow of Professional Institutes in North America, UK & Nigeria. He is Innovator of Corporate Investment Structure Based on Financials and Intangibles, for valuation highlighting intangible contributions of host communities and ecological environment: A model celebrated globally as remedy for unmitigated depreciation of ecological capital and developmental deprivation of host communities. He had served as Examiner to Professional Institutes and Universities. He had been a member of Guild of Soundtrack Producers of Nigeria. He's an author and extensively featured speaker.
- 22. Thank You