nikita anil crm

8/8/2019 Nikita Anil CRM

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Presented by:Nikita (Roll no.24)

Anil Ashish Topno(Roll no.03)


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DefinitionsThe long-term success of the organization and improved

value for its shareholders lies to a very great extent in the

companys ability to develop and sustain genuine

relationships with its customer. -James G. Barnes


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What is CRM?CRM is a strategy by which companies optimise

profitability through enhanced

customer satisfaction

Its all about becoming customer-focused


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Targeting Acquisition Retention Expansion

Customer Relationship Management can be simply defined as everything involved with

managing the customer relationship.

Customer Relationship Management can be simply defined as everything involved with

managing the customer relationship.

TheVal

ueofthe

Relations

hip

Who Do we target What segments are most

profitable What segments match our Value

Proposition What is the best segmentation

strategy for us / our industry

What is the best channel for

each segment What is the acquisition cost for

a channel / segment Do certain channels deliver

certain types of customers

Cost effective acquisition

How can we improve

retention What is our average

customer relationship length How can we hold customer

for as long as possible

What is the most costeffective method of retention

How many products does our

average customer buy How can we induce our

current base to buy more

products Who are the prime targets for

expansion What is the cost of expansion

Duration of Customer Relationship

Valu

e

($

)


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Titan Watch Repair ServicesWhat did Titan Do?

The Titan Signet CRM initiative was undertaken in May 1995 to provide that extra touch to

its special customers at the exclusive World of Titan stores.

Its mission was to create a sense of belonging of the customer to the store and vice versa by: Building a special relationship with high life time value Titan customers

Recognising and rewarding his/her loyalty to Titan

Providing a platform for direct feedback from these valued customers to the company

Where?

It initially started in 6 showrooms in Bangalore. Today the Titan Signet has been extended to

102 World of Titan showrooms across 59 cities all over India

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Behind The ScenesWhile the program has taken customer bonding one step further in Titan,

there are many behind-the-scene activities that ensure that the program is

run efficiently, effectively and with the level of enthusiastic participation.

These are :

Showroom Personnel are trained not only in the operations of the programat the showroom but also in the finer details of CRM.

Enrolments in the program are tracked on a monthly basis for each

showroom, along with data on purchases made by Signet members who

have returned to the showroom to buy again.

Signet operations form a part of the quarterly appraisal for theirshowrooms, thereby ensuring that they earn more marks on their efficient

and effective performance.

A grievance redressal system is in place to ensure that our valued

customers are responded to within stipulated time frame.

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Capture Customer

Data and Measure

Results

The Customer

Capture Customer

Data and Measure

Results

Take Action toEnrich the Customer

Relationship Capture CustomerData and Measure

Results

Build and ManageCustomer Value

Capture Customer

Data and Measure

Results

Capture Customer

Data and Measure

Results

CaptureCustomer Dataand Measure

Results

Store Data, Mineand Make

InformationAccessible

The CRMThe CRMDynamicDynamic

Customer Relationship Management is a ongoing, dynamic learning process for an organizationCustomer Relationship Management is a ongoing, dynamic learning process for an organization

Customer Relationship Management Process

The building blocks of CRM allow an organization to manage this cycle and use the

knowledge on customers to enhance the Life Time value of the customer portfolio.

No organization has perfect information on its customers. Knowledge of customers is

continuously enhanced through the CRM dynamic.


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CRM Strategies

Customer Acquisition Gain the greatest number of new Best customers as early in their lifespan

as possible.

Customer Retention

Retain and expand your business and relationships with your customersthrough up-selling, cross-selling and servicing.

Customer Loyalty Offer programs to ensure that your customers happily buy what you offer only

from you.

Customer EvangelismEnable loyal customers to become a volunteer sales force.

Cost Reduction Reduce costs related to marketing, sales, customer service and support.

Improve Productivity

Enhance your e-business strategies.


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Four Tools

Complaint Resolution

Feedback

Guarantees

Corrective Action


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Complaint Resolution

Three types of complaints:Regulatory, Employee,

Customer

Compensation

Contrition

Ease of Resolution


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Feedback

Customer Data

Customer Behavior

Data-gathering

Analyzing Data


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Guarantees

Customer Rights

Guarantee Design:

Unconditional

Meaningful

Communicable

Painless to invoke


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Corrective Action

The way a firm reacts to a problem so that the

problem never reoccurs.


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Differentiating Customers/

Customer Identification All customers are not equal

Recognize and reward best customers disproportionately

Understanding each customer becomes particularlyimportant.

Same customers reaction to a cellular company operator

may be quite different as compared to a car dealer.

Besides for the same product or the service not all

customers can be treated alike

CRM needs to differentiate between a high value customer

and a low value customer.

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What CRM needs to understand while

differentiating customers

Sensitivities, Tastes, Preferences and Personalities

Lifestyle and age Culture Background and education

Physical and psychological characteristics

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Differentiating Offerings-

Low value customer requiring high value customer

offerings

Low value customer with potential to become high

value in near future

High value customer requiring high value service

High value customer requiring low value service

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Expanding the size of Customer

Database -Barnes 4 Rs

Customer

Retention

Customer

Relationships

Customer Referrals Recovery


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Customer Retention

A low-cost way to increase revenue. Retention is

cheaper than acquisition.

Must be voluntary.

Must lead to long-term relationships.


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Relationships

Attempting to know the

customer.

Commitment and

CommunicationClients should call you only

once. After that, you should

proactively call them.

Richard Buckingham


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ReferralsPowerful tool that results from customer satisfaction or

dissatisfaction.

Referral clients are already sold, before they even call

you. Richard Buckingham


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RecoveryEmpower employees so that they may deal with

mistakes as they occur.


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Customer Lifetime Value

Customer Lifetime Value means the

economic value of customer relations

during the whole period of relation

between customer and company.

Krafft (2000) Kundenbindung und Kundenwert)


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MITES - Shrikant Kulkarni 24


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Models to calculate Customer

Lifetime ValueA few elements are part of all CLV models:

Period under consideration of analysis (e.g. month, quarter)

Discount rate of a company (cost of capital)

Planning horizon (how many periods)

Frequency of buying/turnover

Average turnover per buying

Estimated customer retention


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Current

Current

Every Companys Big

Unknown.Customer ValueFull Potential

CurrentCustomer

Value

Relatio

nshi

p

Profit

ability

Numbero

fRela

tionship

s

Relationship Duration


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Relationship management suggests that sellers identify their most

valuable customers and provide special products/services to them,

either immediately in an effort to build a sense of commitment to the

firm

Acquisition strategy

Retention strategy

While a monopolist profits most from an acquisition CRMstrategy, assuming costs are held constant, the main result of the

analytic model is that in a competitive marketplace one firm

pursues an acquisition strategy and its rival uses a retention

strategy.

A critical ingredient in this finding is exogenous and identical

customer churn rates.

While a monopolist should choose acquisition CRM, when there

is competition a first mover should choose retention CRM.


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Islands of Automation Need To Be BridgedOver time, channels & operational systems are added to cater to changing customer

demands. The resultseveral functional groups are interacting with customers

independently.

$

SalesForce

CustomerService

DirectMail

Web

Branches


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Why CRM?It costs six times more to sell to new customer than to

sell to an existing one.A typical dissatisfied customer will tell 8-10 people

By increasing the customer retention rate by 5%,profits could increase by 85%Odds of selling to new customers = 15%, as

compared to those for existing customers (50%)

70% of the complaining customers will remain loyalif problem is solved90% of companies do not have the sales and service

integration to support e-commerce


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Marketing Selling ServicingCustomer Management Process

Threads

BroadcastBroadcast

MailMail

Field PersonnelField Personnel

Agents/DistributorsAgents/Distributors

Call CenterCall Center

RetailRetail

InternetInternet

Back Office Process/Systems

Custom

erInteraction

Ch

annels Are we making the

right level and typeof marketing, sales,and serviceinvestments in eachof our customersegments?

Customer RelationshipCustomer Relationship

StrategiesStrategies

Are we taking aholistic approach toour customersacross processesand channels?


StructureStructure

Have weimplemented bestpractices andtechnology inprocess/channel?


PerformancePerformance

ScopeScope DepthDepthImportance of CRM


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The Benefits of Customer Relationship Management

RetentionRetention Lift/upsellLift/upsellAcquisitionAcquisitionLikelihood toRecommend

Total PerceivedValue

Impacto

nServic

eQuality

Courteous

Know. About Account

Available atConvenient Times

Ownership of Problems

Know. Product/Svcs.

Easy to Reach

Access toLive AgentsRight Tel. ## of Rings

Resolution Time

Current Performance

Low High

High

Low

The customer value analysis should be performed for each segment individually. The

perceived importance of price and service drivers can differ significantly by segment.

The customer value analysis should be performed for each segment individually. The

perceived importance of price and service drivers can differ significantly by segment.

In addition to LTV of the customer, likelihood torecommend is another important benefit of CRM.


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Thank You

nikita anil crm

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