Customer Relationship Management Presented By: 1. Deepti G. 2. Nikhil K. 3. Santosh D. What is CRM? Customer relationship Management “Overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction” Process of CRM. 1. Identify your prospects and customers. 2. Differentiate customers in terms of Their needs Their value to the company 3. Interact with individual customers to improve your knowledge about their individual needs and to build stronger relationship. Count: 4. Customer product services and message to each customer. 5. Reducing the rate of customer defection. 6. Increasing the longevity of the customer relationship. 7. Enhance the growth potential of each customer through “share of wallet “ cross serving and up serving. 8. Focusing disproportionate effort on high value customer. Attracting Customers Strategy use by the company to attract customer 1. Ads Newspapers Television Radio Magazines 2. Direct mail 3. Phone calls 4. Trade show 5. Road promotion Retaining Customer There are two ways in retaining customer 1. Delivering high customer satisfaction Tactics used are remembering and updating the information to the customer Sending birthday card and anniversary cards Keeping and touch with the customers concerning the performance and service rendered in the fast 2. Handling customer complaint Act quickly Admit mistakes but don’t be defensive Show that you understand the problem from each customer point of you Classify the step needed to solve the problem Keep the customer informed about the progress Consider compensation Growing Customer Suspects Prospects First time customer Repeat customer Client Member Disqualified Prospects Advocates Inactive or Ex customer Partners Building Loyalty Basic marketing Reactive marketing Accountable marketing Proactive marketing Partnership marketing CRM Imperative Acquiring the right customer Crafting the right value proposition Instituting the best processes Motivating employee Learning to retain customer Reducing Customer Defection There are main five step a company can take to reduce the defection size First the company must define and measure it’s retention rate. Second the company must distinguish the causes of customer attrition and identify those that can be managed batter. See marketing memo: asking questions when customer leave. Third, the company needs to estimate how mach profit it loses when it loses customers. Fourth, the company needs to figure out how mach it would cost to reduce the defection rate. Finally, Nothing beats listening to customer. Forming Strong Customer Bonds Get cross departmental participation in planning and managing the customer satisfaction and retention process. Integrate the “voice of the customer “ to capture their stated and unstated needs or requiremental in all business decision. Create superior products, services, and experience for the target market. Customer database and Database Marketing Customer database “Organized collection of comprehensive information about individual customer or prospects that is current, accessible & actionable for marketing purpose “ Business Database (Database Marketing) Business Database consist of Past purchase volume. Price. Members name, age, birth date, hobbies, Favorite foods. Data warehouse It includes : a customer purchase, a customer requested service call, an online query. Companies such as bank and credit card companies, telephone companies, and many other companies have grate deal of information about there customers, including not only address and phone numbers, but also their transactions and enhanced data on age, family size, income, and other demographic information. Using the database 1. To Identify prospects. 2. To decide which customers should receive a particular offer. 3. To deepen customer loyalty. 4. To reactive customer purchases. 5. To avoid service customer mistake.