Customer complaints are the schoolbooks from which we learn.

Unknown

The customer is the most important person on our premises. He is not dependent on us we are dependent on him. He is not interruption to our work he is the purpose of it .He is not an outsider to our business he is a part of it. We are not doing favour by serving him. He is doing a favour by giving an opportunity to do so.

-Mahatma Gandhi

www.a2zmba.com

Customer Relationship Management

Process of creating and maintaining relationships with

business customers or consumers A holistic process of identifying, attracting, differentiating, and retaining customers Integrating the firms value chain to create enhanced customer value at every step An integrated cross-functional focus on improving customer retention and profitability for the company.

Be everywhere, do everything, and never fail to astonish the customer. Macy's Motto www.a2zmba.com

Customer Relationship Management

Bottom-line: The use of information-enabled systems for enhancing individual customer relationship to ensure long-term customer loyalty and retention

www.a2zmba.com

Changing Business Scenario - Need for CRM

Common sense if of paramount importance in business and customer service. Unknown www.a2zmba.com

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 by 85% Odds of selling to new customers = 15%, as compared to those for existing customers (50%) 70% of the complaining customers will remain loyal if problem is solved 90% of companies do not have the sales and service integration to support e-commerce

Customer service is awareness of needs, problems, fears and aspirations. Unknown www.a2zmba.com

Importance of CRM
Scope Customer Management Process Threads Servicing Marketing Selling Depth

Customer Interaction Channels

Broadcast Mail
Field Personnel

Customer Relationship Strategies

Are we making the right level and type of marketing, sales, and service investments in each of our customer segments?
Are we taking a holistic approach to our customers across processes and channels? Have we implemented best practices and technology in process/channel?

Agents/Distributors
Call Center Retail

Customer Relationship Structure

Internet
Back Office Process/Systems
www.a2zmba.com

Customer Relationship Performance

Aspects of CRM

Operational CRM

Analytical CRM

Collaborative CRM

Customer

www.a2zmba.com

CRM Principles
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 customers through up selling, cross selling and servicing.

www.a2zmba.com

CRM Principles (Contd..)

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

Cost Reduction Reduce costs related to marketing, sales, customer service and support. Improve Productivity
Enhance your e-business strategies.

Customers dont expect you to be perfect. They do expect you to fix things when they go wrong. Donald Porter V.P., British Airways www.a2zmba.com

The Building Blocks of CRM

Data Capture
Customer Touch Point Integration Market Research External Databases

Data Warehousing

Knowledge Management

Enabling Technologies

EIS

Segmentation Customer Profitability Data Mining Statistical Modeling

Call Centres Sales Process Automation e-Business

OLAP

Data Cleansing

MetaData

Organization People Deployment and Support The building blocks of CRM are the things that need to be in place for an effective Customer Relationship management program

www.a2zmba.com

Benefits of CRM
Increases customer acquisition Decreases cost and internal issues. Increases revenue and hence profitability. Increases effectiveness. Increases morale of the employees. Increases creativity and hence makes a path for innovation. Increases customer satisfaction

Decreases errors and time loss.

Decreases customers complaints. Increases customer loyalty

Customers are an investment. Maximize your return. PeopleSoft Ad www.a2zmba.com

Benefits of CRM

www.a2zmba.com

Burak Goraglu

Ways to avoid CRM Pitfalls

CRM software should mould to companys best practices, rather than

forcing to use the best practices of the CRM vendor.

CRM vendor only provides 20 percent of the total CRM solution,

organizations should examine how easy or difficult it will be to integrate the product into organizations new systems.

It should be kept in mind any CRM project that takes more than 90

days to implement, runs the risk of failure.

CRM technology is useless if the employees are unwilling or untrained

to use CRM product. Hence organization should gain internal support by communicating the benefits of CRM and provide relevant training.

www.a2zmba.com

Areas of CRM Activity

Sales Force Automation (SFA) Customer Service and Support (CSS) Help Desk Field Service Marketing Automation

Do what you do so well that they will want to see it again and bring their friends. Walt Disney www.a2zmba.com

eCRM
eCRM is the customerfacing internet portion of CRM. eCRM - to interact with the business through their preferred communication channel and it allows the business to offset expensive customer service agent with technology. - high customer satisfaction and reduced cost through improved efficiency.

Good leaders must first become good servants. Robert Greenleaf

www.a2zmba.com

Some CRM Vendors &Products

Applix (iCRM) Siebel (Siebel 7) Oracle (CRM 11i)

PeopleSoft (PeopleSoft 8.4 CRM)

Firstwave (eCRM 7.0) Talisma (Talisma CRM) Commence (Commence RM)

Microsoft (Microsoft CRM)

In the world of Internet Customer Service, it's important to remember your competitor is only one mouse click away. Doug Warner www.a2zmba.com

CRM - ENGINEERING / AUTO SECTOR CRM IMPLEMENTATION TATA MOTORS

Tata Motors Indias largest integrated automaker with market share approaching 60 % in Commercial vehicles and 20% in passenger car market is known well for technology strategies.

Facing international competition TATA MOTORS took up the challenges by focusing on CUSTOMERS
Tata Motors realized that Globalization has changed the business environment in the organization.

www.a2zmba.com

 Many Business challenges needed solution to stay

CRM - ENGINEERING / AUTO SECTOR CASE STUDY OF TATA MOTORS

1. 2. 3. 4. 5. 6. 7. 8. 9.

Competitive Business challenges Include Need for a Standardized world class Business process Need for Centralized Customer Data Base Better and improved communications with 1600 dealers / stockist Better and faster response for customer request Better feedback on product quality Effective training of employees More effective measurement of marketing campaign program Improved throughput in customer services Better Cost management in Sales and administration www.a2zmba.com

CRM - ENGINEERING / AUTO SECTOR IMPLEMENTATION AT TATA MOTORS

TATA MOTORS deployed Siebel CRM applications throughout Tata Motors organization to overcome above challenges Siebel Automotive, a comprehensive customer relationship management (CRM) solution designed specifically for companies in the automotive industry. Was deployed throughout TATA MOTORS

www.a2zmba.com

CRM - ENGINEERING / AUTO SECTOR CASE STUDY OF TATA MOTORS

Deploying Solution in Three Phases Tata Motors has taken a phased approach to the implementation, with the goal of achieving success in each phase before moving forward. Phase 1

Phase 2
Phase 3

www.a2zmba.com

Conclusion
Companies that are not improving their relationships with customers are gambling with the future of their businesses. Focus on adding value to customers, not efficiency or control-oriented imitations. If it werent for the Internet, there wouldnt be CRM as we know it today.
There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else. www.a2zmba.com Sam Walton

References
1.CRM-EMERGING TOOLS AND APPLICATIONS
Editors: Jagdish N Sheth ,Atur pavatiyar,G Shainesh 2.CRM- THE NEW FACE OF MARKETING ICFAI

3.CRM AT THE SPEED OF LIGHT

Paul Greenberg 4.CUSTOMER RELATIONSHIP MANAGEMENT Kristin Aderson Carol Kerr 5.SECRETS OF CRM James G. Bwnes
www.a2zmba.com

References
6. CRM

- Graham Robert Phelps

7. CRM R.K Sugandhi 8. CRM - Burak Gorakglu

9. 10. 11. 12. 13. 14. 15. 16. 17. www.crm2day.com www.crmadvocate.com www.sourcio.com www.gartnerg2.com www.eweek.com www.youtube.com www.talisma.com www.businesslink.gov.uk.com www.daffodildb.com
www.a2zmba.com