UNIT 1 - INTRODUCTION TO CRM

CRM – Customer Relationship Management

Tool that helps an organization to strengthen relationships with its customers. A business strategy that
focuses on customer satisfaction and retention. Focuses to optimize profits. Focuses on strategic impact
rather than operational impact. It is a total discipline. Includes all functions that directly touch the
customer throughout his tenure through the company.
Evolution Of CRM
1ST STAGE Sales Force Automation (SFA) including presales and Customer Support Service (CSS)
including after-sales.
2ND STAGE support the front office activities
3RD STAGE integrating front-office systems with backend systems.

Evolution of CRM for an employee begins in the following stages

1. Stranger -
2. Acquaintance -
3. Friend -
4. Partner -
Objectives Of CRM
1. Convert potentials to final users -
2. Simplifying marketing & sales process -
3. Providing better customer service -
4. Acquiring new customers -
5. Retaining existing customers -
6. Improve efficiency & productivity -
7. Reduce operational costs -
Benefits Of CRM
1. Improve personalized customer services -
2. Improve customer knowledge -
3. Multichannel integration -
4. Time-saving -
5. Instills a sense of belongingness -
6. Helps in elevation of one’s own experience -
Components Of CRM
1. INFORMATION - Raw material of CRM and it helps in Identification, marketing, list and overlay
2. PROCESS - Customer-centered process are products of CRM
3. TECHNOLOGY - Machinery that enables CRM to work
4. PEOPLE - Power supply of CRM.
Barriers To CRM
1. Lack of guidance and direction -
2. Integration problem -

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3. Employee problems of reluctance -
4. Inaccurate data -
5. Lack of understanding the needs of customers -
6. Poorly defined objectives -
7. Technological problems -
Relationship Marketing & CRM
Closely related to each other. CRM and Relationship marketing are usually the same. Relationship
marketing is the concept of customer retention. CRM is the implementation of the concept in more
effective way. CRM focuses on the operational aspect components of relationship. Relationship marketing
focuses on developing close bonds with consumers.
Relationship Development Strategies
1. Organizational pervasive approach - A holistic approach comprising interrelated series of
marketing efforts focusing on keeping existing customers happy and satisfied through continued
interaction. Messages framed as per customer life cycle leading to customer retention and high
profitability.
2. Managing customer emotions - Making efforts to create customer delight through unexpected
attributes thereby changing the value perception. Organizations have to create new innovative delight
features constantly as they lose their novelty pretty easily.
3. Brand building through relationship marketing - Includes building brand equity through
advertising campaigns and promotional events and sponsorship. Relationship marketing is a strong
weapon for brand building and helps in creating a positive corporate image in the market. It can be
done directly by ad campaigns and indirectly by events.
Service Level Agreements (SLA)
A Service Level Agreement (SLA) is the service contract component between a service provider and
customer. An SLA provides specific and measurable aspects related to service offerings. For example,
SLAs are often included in signed agreements between Internet service providers (ISP) and customers. It
is a part of a standardized service contract where a service is defined formally. It is a tool for formalizing
a relationship with the customers and used for high-value customers.
SLA can be
⮚ Communications tool -

⮚ Conflict prevention tool -

⮚ A living document -

⮚ Objective basis for measuring service effectiveness. -

Details Provided By SLA

1. Specific details and scope of provided services, including priorities, responsibilities and guarantees
2. Specific, expected and measurable services at minimum or target levels
3. Informal or legally binding
4. Descriptive tracking and reporting guidelines
5. Detailed problem management procedures
6. Detailed fees and expenses

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7. Customer duties and responsibilities
8. Disaster recovery procedures
9. Agreement termination clauses

UNIT 2 CRM MARKETING INITIATIVE, CUSTOMER SERVICE

AND DATA MANAGEMENT
CRM Marketing Initiatives
Cross-selling & upselling
Cross-Selling
Cross-selling is the act of selling a product or service to a customer as a result of another purchase.
Features Of Cross-Selling
1. Would involve more than one product as a variety could be offered.
2. The products need to be relevant
3. Cost of acquiring additional revenue is less
4. Could involve more than one representatives
5. Product bundling helps ad business opportunities.
Upselling
Seller persuades the customer to purchase additional and more expensive product in order to make a
larger total sale
Features Of Upselling
1. Free samples offered to arouse interest.
2. Linked to current or anticipated needs.
3. Would include the sale of product that caters to original demand.
4. It could lead to refusal or acceptance of the sale.
5. Creates artificial demand for the product or services by providing time-sensitive offers.
Customer Retention
Refers to the actions companies and organizations take to reduce the number of customer defections. The
goal of customer retention programs is to help companies retain as many customers as possible, often
through customer loyalty and brand loyalty initiatives.
Features of Customer Retention
1. Involves engaging with your customer.
2. Works towards getting back to the lost customer.
3. Understanding customer satisfaction and loyalty.
4. Understanding customer lifetime value(CLV)
5. Involves cost and strategy management.
Benefits Of Customer Retention
1. It is cheaper than acquisition as Loyal customers are more profitable
2. It makes your brand stand out from the crowd.
3. You will earn more word of mouth referrals
4. Engaged customers provide more feedback.

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5. Loyal customers are more forgiving
6. Customers will welcome your marketing.
7. You get a chance of expanding your brand boundaries.
8. It is better for your employee

Behavior Prediction
Helps marketers determine what customers will do in the future. Uses historical customer behavior to
forecast future behavior.
Behavior Prediction Analysis Includes
1. Propensity-to-buy Analysis - products a customer is likely to purchase.
2. Next sequential purchase - determining what product is the next purchase for the consumer.
3. Product affinity analysis - understanding possible product associations.
4. Price elasticity modeling & dynamic pricing - determining optimum price for a given product.

Marketing decisions (Pre-emptively offering discounts or fee waivers, cross-selling and upselling, etc)
taken by the company based on this knowledge.

Customer Profitability & Value Modeling

Customer value is derived from STP. Customer value is derived from customer’s knowledge of their
requirements and the supplier’s information on the presence of the customers and their requirements.

Channel Optimization
Channels management means optimizing a company’s “inbound” channels with its “outbound” means of
customer interaction and knowing how to choose the best approach for each. Channel optimization looks
at reaching out to the customers such that there is value creation with every transaction. It benefits the
organization as it would help in personalizing as per the requirements of the customer. The hard part is
finding a balance between delivering desired customer channel preferences and driving customers to the
lowest cost to serve channel acceptable to them.

Personalization
Personalization is the capability to customize customer communication based on the knowledge
preferences and behaviors at the time of interaction.
Features of Personalization
1. It aids in the selling process as the customer experiences a sense of importance as the organization
puts in additional effort to lure the customers.
2. USP of the product or service is the cutting edge that helps to close a sale.
3. Helps to create a sense of loyalty in the customers’ mind.
4. Focuses on emotional rather than rational aspect of purchase.
5. Helps to create a niche irrespective of the target market sought.
Event-Based Marketing
Time-sensitive marketing or sales communication reacting to a customer-specific event. It is also known
as event-driven marketing. The ideal goal of event-based marketing is to able to react to customer events

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in real-time, soon after the actual event occurs. It requires solid process automation and a well-calibrated
workflow to be effective.
Features of Event Based Marketing
1. Optimizing on the opportunity and reaching out to the customer at the given time.
2. It extends from the primary sale to the extended or tertiary sale for the opportunity.
3. Takes into account the need of the customer and helps them to go beyond the need of the hour.
4. It has a limited shelf life as it does not extend beyond the particular event.
5. Includes personalization as it is opportunity-driven and is not standardized.

CRM And Customer Service

Call Centers And Customer Care
The call center represents the customer's only chance to interact with a real human being. Executives
considered their companies’ contact centers a necessary cost of doing business and treated them as them
serving the sole purpose of weighing down the corporate profitability. Call center effectiveness has been
measured by how quickly getting the customer off from the phone. entered the marketplace to alleviate
some of the repeat work and increase efficiencies, allowing companies to handle escalating call volumes.
Customer service representatives (CSRs) performance is tracked by the number of calls supported by
them.
Features Of Call Centers
1. Third-party operation that is representing on behalf of the organization.
2. Services are used to reach out to the customer and cater to their requirements.
3. It helps to reduce the turnaround time as it is dealt by a dedicated team.
4. Helps create a sense of satisfaction in the minds of the customers.
5. Ensures evened out automatic call distribution.
6. Helps by recording, monitoring and analyzing calls.
7. Performance of CSRs are evaluated thus increasing productivity in closing a call.
Automation Of Contact Centers
Call Routing
Customer support might be made up of several or many geographically dispersed contact centers. The
segregation may be based on location of the company’s regional offices, Product specialization or staff
expertise, Proximity to key R & D activities, Various escalation for trouble tickets, Location of company
outsourcing the contact center.
Call routing along with speech recognition plays an integral role in the overall CRM strategy.

Contact Center Sales Support

Contact center is used as a point of sales. A relatively new practice that requires a combination of robust
customer data and CSR finesse. CSR finesse is measured on the volume of calls they receive. The
implementation of the services makes the entire difference among the companies.

Customer Satisfaction Measurements

Companies are using innovative ways to gather information about customers’ impressions and leveraging
findings to improve service. With the advent of e-business, when exiting a website, the customer is

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greeted with a pop-up screen enquiring about the experience. Electronic surveys are becoming
sophisticated serving as technical equivalent of focus group. it aids in formulating and achieving the
company’s overall strategic goals.

Call Scripting
Customer intelligence (understanding customer requirements, predicting customer behavior, etc.) is
improving with the advent of technology. Due to this, the capability of providing CSRs with situational
scripts is emerging as a must-have for many contact centers. Scripts eliminate the risk of guesswork on
the part of the CSRs providing them with logical talk points. It helps a company’s contact center present a
uniform image.
The flip side is that your high-value customers might deserve a different answer than the rest of the
population.

Call scripting includes the following factors

1. Reason for contact
2. Customer’s value
3. Cross-selling opportunities
4. Current product promotions and discounts.
5. Past due bills or accounts payable issues.
6. Scope of providing additional information for additional revenue prospects.
7. consistency in response received from call receiver so that there is no scope of different answers to
customers.
Cyber Agents
Cyber agents pulls together the best of personalization and advanced technology. Cyber agents are as
personality- with facial expressions and voice communicating with the web visitor by the first name. He
can draw from a wealth of detailed information to answer basic FAQs as well as guide a customer. The
vision for cyber agents is providing information to actually making decisions based on a combination of
customers request Heterogeneous & detailed information about the customer and Complex rule-based
logic.
Workforce Management
Workforce management tools specialize in staff planning and optimization, where some products are
specific to contact center staffing. It is surest mean of guaranteeing that the right customers receive
appropriate levels of support. Forecast contact volumes to predict busy periods, Recommendations for
optimal no of CSRs, Performance tracking, Employee scheduling based on skills, tenure, etc. and Global
monitoring of contact centers to combine findings into single reports.

CRM And Data Management

Types Of Data
1. Master data
Contains one record for each individual product for which there are unique characteristics that are
known in advance. It isn’t terribly volatile but it needs to be kept up-to-date. It creates reality.
Product information is added to the product master file.
2. Reference data

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 Reference data differs from master data in that it does not need to be set up in advance before a valid
entry is created. It reflects reality. More volatile data than master data. Customer information is
stored in a reference file.
3. Transaction data
Extremely volatile. Time-sensitive. Should be changed to reflect reality. Eg; every order creates a
transaction record in the file. Transaction data systems are notorious for recording low-quality data as
complete accuracy isn’t necessary for the completion of a transaction. Most organizations focus
initial efforts on ensuring that transaction data is clean as it is stored in the data warehouse.
4. Warehouse data
Built from the information captured in transaction systems and reference or master files. Once
loaded, they should not be changed even if the source transaction changes. The data warehouse
tracks all transactions and changes over time so that companies can analyze history patterns & trends.
Since transaction data is usually of poor quality, it gets cleaned before it gets into the warehouse.
5. Business view data
Generated from the data warehouse. Business views are calculations or summaries of historical
information that often compare trends over time. It focuses on a particular business area. They are
never updated, the views are just recreated from the data warehouse periodically.
Identifying Data Quality Issues
Management of quality of data is considered to be essential. Data can be damaged right from the source,
or in the data warehouse.
The sources of data quality problems
1. Customer data deterioration (customer’s move to another location or change of jobs)
2. Source quality issues (lack of standards)
3. Lack of trust (resistance to trust for the customer and the sales representatives)
4. Outdated
5. Irrelevance to the current issues
6. No usage of statistical data in analysis
Planning Information Quality
1. Identifying business need
2. Analyze information environment
3. Assessment of data quality
4. Determine business impact
5. Identifying root cause
6. Correction & prevention of data errors
7. Implementation of controls
8. Communicate action and results
9. Seek feedback
Using Tools To Manage Data
1. Measuring data quality before using it.
2. Relying on Sources of standardized data
3. Try to erase Undeliverable contacts
4. Keep the technology updated in alignment to the Global changes
5. Consultants and service providers

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6. Customer information management
7. Management/strategic planning
8. Think global, act local
9. Administration & Analysis
Types Of Data Analysis
Online Analytical Processing
Allows users to analyze data from multiple database systems at a particular time. They are
multidimensional meaning that information can be compared in different ways. For processing
information, an OLAP server is required for organizing and comparing information. Clients can analyze
different sets of data. It is often used in data mining for its data analysis capabilities which aim to discover
new relationships between different sets of data.
Clickstream Analysis
Refers to the process of recording the clicks made by visitors on a particular website. It is a process of
collecting, analyzing and reporting aggregate data about the pages visited by visitors. 2 levels- traffic
analysis and e-commerce analysis. traffic analysis tracks the number of visitors on the page, data
transmitted by visitors and time taken by the pages to upload. E-commerce analysis notices the buying
behavior of visitors on a webpage. An organization collects a huge amount of data through clickstream
analysis.
Collaborative Filtering
It is a method of recommending products or services to visitors on a website. It tracks the buying behavior
of visitors through online purchases, categorizes the visitors based on the similarities among them. The
data collected used to provide product suggestions to the visitors.
Personalization
It is a process of tailoring communications directly to a customer segment or to an individual customer.
Helps the company in marketing an individual’s unique needs- now and in the coming future. If done
correctly, it can increases purchases and also maintain customer loyalty.
Data Reporting
It is the process of collecting and submitting data to authorities entrusted with compiling statistics. It gives
an accurate analysis of the facts. If it is not reported accurately, it is known as underreporting. It is a very
difficult endeavor and inaccurate data reporting can lead to flawed information in the hands of
decision-makers and journalists.

UNIT 3 CRM STRATEGY, PLANNING, IMPLEMENTATION AND

EVALUATION
Understanding Customer
Customer Value
7 Models Of Customer Value
1. Customer value in terms of utility
2. Opaque value - sometimes to customers.
3. Contextual - depends on the end-user, end situation, and environment.

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4. Multidimensional - comprises of economical, functional and emotional value for the customer.
5. Transaction between benefits and costs.
6. Value defining the next best alternative to the customer.
7. With the sole purpose of creating value.
Customer Value Pyramid
It depicts the process of creating customer value. Represents three phases
1. Strategy - it comprises goals and strategies defined by the organization.
2. Customer focus - the strategies defined are keeping in mind the customer requirements, needs and
satisfying their expectations.
3. Operational effectiveness - consists of the understanding of all the operations in the
organization(information systems, personnel, business, and quality systems) for achieving the
defined goals and strategies.
Customer Value Proposition
It is a widely used term in the business environment. It is a description of advantages that a customer
would experience after purchasing and using an organization’s product. Customer value proposition can
be defined as a business statement that summarizes why a customer should purchase a particular product.
It lays the foundation for effective marketing activities in the organization.
It helps integrate customer intelligence, competitive insight, and product value to provide an effective
result.
Organization gains higher customer satisfaction levels and less effort is spent on remarketing and
repositioning. Thus, a win-win situation is created.
Steps in developing CVP
1. Reviewing and testing existing CVP.
2. Identifying critical improvement areas
3. Improving existing CVP
4. Verifying and documenting
Customer Value Framework
It involves four elements- delivery quality, customer intimacy, orchestrated customer learning, and
value-net deep drive.
1. Delivery Quality - When the customers are aware of their needs and the supplier is aware of the
customer’s needs, then the quality is delivered.
2. Customer Intimacy - When the customer is aware of his needs but the supplier is unknown of
customer’s needs, the supplier tries to achieve customer intimacy to retain the customer and become
known for his needs.
3. Value net deep drive - When the customer and supplier both are unknown to the needs then the
supplier tries to create value for the customer.
4. Orchestrated customer learning - When the customer is unaware of their needs and the supplier is
aware of the customer’s needs then the supplier makes the customer creates a need for the customer.
Customer Care
It is a process that seeks to acquire new customers, providing appropriate services and therefore building
customer loyalty.
Key Points For Customer Care
1. Communicate with customers

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2. Deliver consistent service.
3. Handle complaints
4. Choose appropriate customer care strategies
5. Involve the whole team in customer care.
Three Stages Of The Customer Care Process Includes
1. Listening - organizations set up well-established channels for better communication, better
mechanism for handling customer complaints. This stage looks to adopt a simple and easy
mechanism where we look to preempt and resolve issues.
2. Responding - acknowledging every call from the customer, evolving internal processes to respond
within expected timeframe. Responding to the complaints is crucial for the customers.
3. Improving - it is an ongoing process wherein the leaning is from the previous experiences and it
helps overcome any and every challenge in the future.

Benefits Of Customer Care

1. Satisfies customers
2. Encouraging customer feedback.
3. Evaluation of the feedback process.
4. Proactively assisting the dissatisfied customers.
5. Empower employees at all levels
6. Investigating and then improvising from customer feedback.
7. Reduction in cost of appraisal and resolution.
8. Helps convert potential customers into user and then brand-loyal customers.
Company Profit Chain
Recognizes the importance of initiating, maintaining and enhancing relationships with one’s customers.
Discusses satisfaction, retention, and loyalty.
The chain involves the following components
1. Service quality and controllable marketing variables - service quality is of utmost importance as the
customer sales upon while making the purchase.
2. Customer satisfaction - it is subjective in nature and varies depending upon the customer’s own
experience.
3. Customer retention and loyalty - it is a culminating effect of expectation prior to sales and actual
experience after sales which leads to customer retention and loyalty.
4. Company profitability and value - customer loyalty leads to profit and the organization then provides
value to the customers along with profit.
Customer Loyalty
There are four types of loyalty
1. Behavioral loyalty - customer buys the first easy available option. The customers are not brand loyal.
Customers switch to the other brand very quickly and they do not require much time for decision
making.
2. Affect loyalty - here the customers have a feeling of oneness towards the brand. Importance is given
to the liking and preference towards brands. The customers are conscious about the requirement.
3. Situation-specific - they are loyal because of the circumstances. Such customers are more interested
in the products and services offerings promotions and are always on a lookout for them.

Asst. Prof. Shweta Dubey

4. Latent loyalty - this loyalty stems from a wish or desire towards a specific brand. The customers are
highly satisfied with the brand they are focused on.
Customer Loyalty Ladder
Systematic way of classifying customers of an organization into five different categories depending on the
level of engagement of customers with the organization.
The five stages are as follows
1. Suspect - a person who reads/encounters some type of publicity.
2. Prospect - someone who pays attention to the firm’s promotional aspect.
3. Customer - those who buy form’s products or services for the first time.
4. Client - customer who buys products from firm for a second time and becomes a regular customer.
5. Advocate - satisfied customer who gives good opinion of product and influences others to buy it as
well.
Customer Retention
F.F.Reichard first proposed that companies needed to focus more on customer retention as opposed to
acquisition. An organization serves customers in a better fashion with better understanding.
Advantages of customer retention
1. Possibility of repeat business as customers are satisfied with earlier purchases.
2. The cost of customer acquisition gets reduced to a great extent.
3. Fostering greater interaction between business and customer.
4. Having more delighted customers who would not only buy the product again and again but also
would become advocates of the organization’s products and services.
Strategies for customer retention
1. Set customer's expectations while planning the goals and strategies.
2. Be the expert in your field.
3. Build trust through developing effective relationships.
4. Implement anticipatory services to gain brownie points from the customers and creating a great
impact on the customers.
5. Standardization of processes so that the use of automation is supported.
6. Implement customer feedback surveys so that proper evaluation of strategies and processes can be
done.
Satisfaction Retention Curve
It shows the relationship between satisfaction and loyalty. V. Kumar and W.J. Reinhartz states that the link
between satisfaction and retention is asymmetric and non-linear.
Dissatisfaction has a greater impact on retention than satisfaction whereas the impact of satisfaction on
retention is greater at the extremes, with the flat part of the curve in the middle called a zone of
indifference.
CRM Strategy
The main drivers for CRM strategy are
1. Competition
2. Technology
3. Trend of promotion

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Objectives Of CRM Strategy
1. Shared customer knowledge - one database for all customers acquired by organization that Cn be
used effective future strategizing.
2. 360-degree customer view - the customer needs, wants, desires are analyzed from all aspects and
accordingly product and services can be customized.
3. Process improvement - the entire process of customer service becomes more productive and can be
automated as per the requirement with less hassles.
4. Strategic development - the entire strategizing process becomes more refined and is updated as per
the need of the hour.
CRM Strategy Cycle
CRM strategy cycle uses existing information and processes to determine the profit opportunities in
existing stages.
Stages in CRM strategy cycle is
1. Acquisition - Process of acquiring new customers. Involves development of product, cross-selling
and up-selling. The Importance of this stage varies according to specific business situations.
Following points must be considered during acquisition
a) Selection of right mix of customers.
b) Developing acquisition program through research
c) Take advantage of acquisition timing.
d) Encourage word of mouth referrals
2. Retention - It involves retention, servicing, and loyalty. Customer equity is more dependent on
customer retention than customer acquisition. Retention leads to significant increase in profitability.
Based on two types of bonds
a) Programmatic bonds - reward programs, procedures making switch difficult for customers.
b) Humanistic bonds - with proper treatment to customers.
3. WIN BACK - Winback strategies should be based on defection analysis(why customers leave).
Defection analysis can be done through online surveys, evaluation forms or personally reaching out
to the lost customers.
Strategies used by firms to win back customers are
a) Rebranding - partial or complete revitalization of the brand.
b) Special discounts - discounts, rewards and loyalty programs
c) Deal incentives - offering a deal by associating with another company.
d) Targeted services - targeting with new improved product.
Complexities Of CRM Strategy
1. Keeping pace with competition becomes difficult.
2. Organization deals with High cost of implementation.
3. Use of technology is expensive
4. Organizations may face a Lack of sales support and lack of support staff.
5. There are chances of organization facing operational difficulties
6. A change in management can lead to the entire CRM strategy to change.

Planning And Implementation Of CRM

Aspects for successful implementation of CRM

Asst. Prof. Shweta Dubey

1. Set realistic goals
2. Ensure constant and committed support from management
3. Ensure complete integrity during the process
4. Ensure continuous participation of application users
Planning is done for
Business To Business CRM(B2B CRM)
It is business activities undertaken by two business entities. Pareto principle is applied, “80% of sales are
made by 20% customers”. CRM activities undertaken by the customer helps to collect information from
the customer which can be used to improve service quality. It helps to gauge increase or decrease in sales
volume.
Benefits of B2B CRM are
1. Helps organization become efficient.
2. Helps keep track on progress
3. Helps in identifying and defining roles.
4. It helps in sharing information and increase knowledge base.

Sales And CRM

Salesforce Automation(SFA)
It is the backbone of many sales organizations. It is the application of several digital and wireless
technologies for supporting the activities of salespeople. A technique for automating sales activities. SFA
enables the salespeople to share sales data with other departments through email, telephone calls and
videoconferencing. It includes sales lead tracking system that provides details related to potential
customers of an organization.
The Stages In The Sales Processes Are
1. Prospecting and qualifying leads
2. Managing contacts, opportunities and accounts
3. Tracing stages of deal closure and probabilities
4. Maintaining a database of product information
5. Managing and tracking communications between salespeople and customers.

Sales Territory Management

It is a process that helps sales representatives by defining geographical sales territories based on market
factors and customer data and Allows managers to optimize individual teams and skillsets appropriate for
client/prospect.
Contact Management
It is a subset of SFA. It deals with organizing and managing data across and within a company’s client
prospect organization. It maintains a local client database which makes it capable to track the customers
and their decision making criteria. It allows salespeople to maintain notes on specific clients for prospects.
Lead Management
It is also known as opportunity management. It aims to provide foolproof sales strategies and helps design
a defined approach to turning opportunities to deals. It helps monitors leads, generate next steps and
refine selling effort.

Asst. Prof. Shweta Dubey

Configuration Support
To assimilate value for money solutions and helps establish and maintain consistency of product
performance.
Knowledge Management
Involves the design, review, and implementation of both social and technological processes to improve
the application of knowledge. The three pillars of knowledge management are Technology, Process, and
People.
The objectives are creating knowledge repositories, improving knowledge access, managing knowledge
as an asset.
The knowledge cycle involves acquiring knowledge, analyzing knowledge, preserve knowledge and use
knowledge.

CRM Implementation Steps

1. Business planning - guidelines for developing, implementing and measuring a CRM program.
2. Architecture/design - drafting a CRM structure as per relevant linkage.
3. Technology selection - aligning technology with CRM vision. Technologies used as CTI(computer
telephony integration); ACD(automatic call distribution); IVR(interactive voice response).
4. Measurement - evaluating CRM applications as per the required functionality.
5. Delivery - providing final application to end-user.
6. Development - customization as per organizational requirement.
CRM Evaluation
Evaluation can be done through
1. SERVQUAL model
2. GAP model
3. Customer satisfaction
4. Customer loyalty
Company 3E Measures
The three Es of measuring CRM strategy of company are
1. Efficiency - the different domains for measuring efficiency are training, data transparency, customer
satisfaction, complexity of the sales process, reduction of meeting time.
2. Effectiveness - can be measured using the following approaches
a) Planned approach - gathering internal and external customer inputs on a proactive basis (includes
surveys, interviews, etc.)
b) Event-driven approach - entails ready to accept customer inputs when customers reach out to the
company. it might include having customer care and toll-free number available. Reduced
customer attrition. Customer contact point programmes. Improved sales promotion and market
research reports.
3. Employee change - involving employees and training them to get adjusted to change. Successful
implementation will result in increased employee motivation, better-trained employees and improve
responsiveness to customer and prospect requests.

Asst. Prof. Shweta Dubey

UNIT 4 CRM NEW HORIZONS
Concept Of E-CRM
E-CRM is all about managing relationships with customers by using information technology. It enables
organizations to integrate their internal resources with their external marketing strategies. All initiatives
(SFA, Self-service websites, call centers, etc) work together to enable you to more effectively respond to
your customers’ needs and market them on a one-to-one basis.
Applications Of E-CRM
1. It helps to make the world a smaller place.
2. It reduces the technological gap
3. It helps maintain a data warehouse.
4. It provides uniformity of information and timely dispersal of information.
5. It aids in reaching out to customers via various channels.
6. It helps to identify profitable customers.
7. It helps in measuring communication turnover.
8. It helps in providing fast customer service.
Requirements Of E-CRM
1. It helps in fast, convenient communication through e-messaging, internet, digital marketing.
2. Analyzing the touchpoints of customer experience.
3. Maintaining a systematic database for better customer feedback and support.
4. Coping with fierce market competition.
5. Collaboration of internal and external information.
6. Empowering customers’ for making convenient deals and getting required information.
Benefits Of E-CRM
1. Direct benefits - Helps in reduction of costs incurred by manual processes and improves business
performance while reaching out to maximum number of customers.
2. Indirect benefits - include benefits such as reduced lead times for ordinary products, minimum risk of
obsolete stock, customer satisfaction, and effective communication.
3. Strategic benefits - long term benefits that can be achieved through close interaction with customers,
suppliers, and employees. These benefits are non-quantifies, unseen and valuable.
Scope Of E-CRM
1. Increasing customer base
2. Increasing profitability
3. Ensuring the prolonged existence of customers
Tools Of E-CRM
1. Customer analytics software - measures effectiveness of E-CRM across inbound and outbound
channels by generating automated reports further used for decision making.
2. Data mining software - extracts useful customer information which helps identify most valuable
customers ad place its products. It reduces campaign cost and decreases the target segment size.
3. Campaign management software - plans and executes e-campaigns, analyses offline and online
customer touchpoints by verifying different offers against promotional history.
4. Business simulation - used in combination with Campaign management software and helps in
reanalyzing for further verification and execution of campaigns.

Asst. Prof. Shweta Dubey

5. Personalized messaging system - it provides timely information to customers in the form of
customized messages. The system alerts the customers of reminders.
6. Real-time decision engine - coordinates interactions across touchpoints of different customers for
most appropriate product offer on real-time basis. It saves customer contact history and other
information.
Levels Of E-CRM
1. Foundational services - It includes necessary services like company website, call centers, etc.
2. Customer-centered services - services that are customer-centric like tracking of order, product
customization, etc.
3. Value-added services - includes product availability online, training customers for effective product
usage and boosted self-services options. The activities can either be proactive (avoiding problems by
solving it beforehand) and reactive(reacting on complaints of customer).
Privacy In E-CRM

Solutions of privacy issues

1. Current solutions - companies regulate privacy policies ensuring customer information is protected
without abusing. A website publishes all kinds of privacy statements but they can be kept in for a
short period.
2. Visualizing collected information - understanding the need of the customers and informing them in
advance. Proper application with the security of customer data can be done with prior information
and process shared with the customers.
3. Promoting understanding - about privacy policy the customer is educated about the organization's
steps with respect to the sensitivity of personal details collected by the organization.
4. Increasing customer trust about third party - instilling trust in customer for data collection work
done by third party operators.
5. Using information technology - adopting new, safe and secure technologies to ensure privacy.
Software Applications For Customer Service
Service automation is the process that works as a supporting system for the service staff and managers to
achieve their work-related objectives. Key components include infrastructure, data, devices, and software.
Five domains of service automation are
1. contact centers -
2. call centers -
3. help desk -
4. field service -
5. web-based self-service -
Benefits of service automation are
1. Enhanced service processes -
2. Enhance productivity -
3. Increased customer experience -
Software Applications In E-CRM
1. Activity management -
2. Agent management -
3. Case assignment -

Asst. Prof. Shweta Dubey

4. Contract management -
5. Escalation -
6. Email response management -
7. Inbound communication management -
8. Queuing, routing, and scheduling -
Recent Trends In CRM
1. Social CRM
2. Mobile CRM
3. Global CRM
4. CRM in rural markets

Social Networking And CRM

It is the application of social media to manage customer interactions. It helps understand requirements of
customers, pre-empt changing requirements and arrest dissatisfaction. It helps in getting a 360-degree
view of the customer. Combined strategy for richer customer interactions.
Strategies Used Are
1. Treat social networking as a new channel within CRM.
2. Enhance and extend CRM through social networking.
3. Play to the strengths.
Advantages Of Social CRM Are
1. Helps in launching a product.
2. Helps in conducting effective market research surveys
3. Provides better customer support
4. Helps in managing a brand reputation.
Difference Between Traditional CRM And Social CRM
Traditional CRM
1. Manage customers through effective systems and technology.
2. Customer strategy is a part of corporate strategy
3. Organized defined processes
4. Reaching out to the customer using manpower
5. Expensive and continuous effort involved
6. Difficult to keep pace with changes
7. Limited to geographical areas and existing customer base.
Social CRM
1. Manage customers with the help of social media
2. Customer strategy is the corporate strategy.
3. Customer defined processes
4. Reaching out to customer using technology
5. Expensive initially and hen a systematic process.
6. Easier to cope as can reach customers easily.
7. Unlimited reach without any confinement.

Asst. Prof. Shweta Dubey

Mobile CRM
It is a subset of E-CRM. It is communication either one-way or interactive, related to sales, marketing and
customer service activities conducted through mobile medium for purpose of building customer
relationships. The reasons for M-CRM being popular are larger screen size, easy adaptability and
increased connectivity speed.
Implementing M-CRM System Involves The Following Stages
1. Need analysis phase understanding the requirement of the consumers.
2. Mobile design phase the ease of operating, storage capacity, etc gets finalized.
3. Mobile application testing phase approval of the application is taken and the alterations and
modifications are made.
4. Rollout phase implementation and training is provided to employees.
Advantages Of M-CRM Are As Follows
1. Personal direct connection with the customers
2. Continuously active application.
3. High and quality responsiveness
4. Supports the loyalty between the customer and the company.
5. Reaching targeted segment with ease.
6. Constant up-gradation
7. Restore confidence in the minds of customers.
8. Avoids the complete expenditure of advertising.

Global CRM
Strategic application of processes and practices for managing relationships between customers and
organizations operating in multiple countries. It is a challenging task for organizations due to different
customer requirements, level of competition and regulatory framework.
Global CRM Helps In The Following Ways
1. Achieving global efficiency
2. Attaining multi-market flexibility
3. Achieving worldwide learning of cultures and people
4. Adapting to various changes in the likes and preferences.

Challenges Of Global CRM Are As Follows

1. No uniformity in the promotional strategies across regions.
2. The way of motivating employees would vary from place to place.
3. Managing customer database is a mammoth task.
4. It cannot be used in isolation.
5. High costs are incurred in reaching out to different geographic locations.

Guideline For Successful Global CRM

1. Understanding the core value of organization
2. Positioning the brand as a global brand with the essence of locality
3. Understanding the customers

Asst. Prof. Shweta Dubey

4. Identifying global business environment through swot analysis, etc.

Rural CRM
CRM helps in establishing relationships with rural customers by
1. Providing useful customer information.
2. Getting customer feedback on products and services.
3. Enabling organization to conduct product campaigns.
4. Supporting marketers for effective on-field performances.
5. Delivering products on time through effective channels.

Challenges Of Rural CRM

1. The rural market is currently in transition hence it is difficult to stick to one strategy.
2. Poor planning, high technology costs and unavailable skillset in rural market.
3. Problems faced in planning, implementation in cross-functional teams.
4. The market has a slow adoption process.

Ethical Issues In CRM

Ethics, trust, values, and transparency are pillars on which relationships between customers and
organizations.
Ethical issues in CRM are as follows
1. Misinformation can lead to disastrous results.
2. Chances of overspending on advertisements is high.
3. Cases of overselling of product features may create irritation for the customers.
4. Cases of hiding important facts and defects in products is possible.

Asst. Prof. Shweta Dubey