Customer Relationship Management – Study Material

guest Relationship direction guest family management is a comprehensive strategy and process of acquiring, retaining and partnering with selective customers to create superior valuate for the company and customers. Importance of CRM * Identifying customer needs. * Identifying untapped business potential. * Identify strong & weak points of suppliers. * Benchmarking to achieve international excellence. * Help in rediscovering the customers and understanding them * Identify field requiring new technology and using. * Provide feedback to the suppliers on its wide operations. Action plan to make organization customer centric. Goals of CRM * Build long term and profitable relationship with suitable customers. * Getting closer to those customers at every point of contact with them Enablers for the growth of CRM (Pg 17-20 in the pdf you sent) * growth of service economy. * Global orientations of business. * Emergence of trade economy. * Aging population of economically advanced e conomies. Criticality of Customer relationship * Non traditional competition * Market Maturity * Misalignment between revenue & profitSchools of Thoughts on CRM 1. Anglo Australian feeler Explains relationship marketing as a Confluence (meaning process of merging) of Quality management, customer relationship economics and service marketing concepts. 2. Nordic Approach Explains relationship marketing as a Confluence of interactive theory, customer relationship economics and service marketing concepts. 3. North Ameri coffin nail approach Contrast Organizations milieu decides the relationship between buyer and seller. Fig Nordic Approach Fig Anglo Australian approachBrand Relationship Management is as the process of establishing, maintaining and developing relationship between brand and its consumers. BRM Process Brand Loyalty specify as the customers commitment to the brand and make repurchase over time. Ladder of Loyalty 1. Partner An cheer who is actively involved in d ecisions of the company. 2. Advocate A supporter who proactively works to improve the products & work of company. 3. maven A client becomes a supporter when he is satisfied with the offering and refers to friends. 4. Client A customer who make repeat purchases . Customer A prospect who get attracted by the offerings and buy the product or service. 6. Prospect Is a target, a possible customer. Learning about customers 1. Knowledge acquisition 2. Customer note Customization of Marketing Mix 1. Product 2. Price 3. Place 4. Promotion 6 Types of Markets or Marketers * Customer market * Referral market * Influence market * Recruitment market * Supplier market * Internal market misunderstanding of CRM * Database Marketing. * CRM is a marketing process. * CRM is an IT issue. * Loyality scheme. * Can be implemented by any company.Tools & process of CRM Value filament Primary Stage Customer Portfolio Analysis Customer Intimacy Network development Value preposition development Manage customer lifestyle Customer Supporting conditions Leadership & Culture Data & Information engine room Profitability People Process Zero Customer Defections * Price defector * Product defector * assistant defector * Market defector * Technology defector * Organizational defector Customer tearingemption computer program to reduce defection whole tone 1 Measure customer redemptionStep 2 Interview formal customers Step 3 Analyze, compile and service data Step 4 Identify switching barriers CRM Framework Red block Major role Blue block Minor role Relationship Style inauguration Development Maintainance / Enhancement Psychological Step Stwiching Satisfaction Trust Commitment Loyality CRM in B2C Market Characteristics of services A. Intangibility Could not be felt immediately B. Heterogeneity differences C. Simultaneity similar quality products offered at same time D.Perishability shelf life of consumable products or zero inventory. Dimensions of Quality Services I. dependability II. Assurance III. Tangibility IV. Empathy V. Responsiveness Cost of losing a customer 1. Reduces cash flow for loaded in future. 2. New customers cost up to 5 times more. 3. More cost effective for services firm as they discover new traits of customer likes and dislikes. 4. Developed a higher level of loyalty can change more for their products and services. 5. If word of mouth is good, then firms have to spend less on advert and spend for attracting new customers.