CU - BCOM Sem VI -CRM

BACHELOR OF COMMERCE SEMESTER IV CUSTOMER RELATIONSHIP MANAGEMENT 1

First Published in 2022 All rights reserved. No Part of this book may be reproduced or transmitted, in any form or by any means, without permission in writing from Chandigarh University. Any person who does any unauthorized act in relation to this book may be liable to criminal prosecution and civil claims for damages. This book is meant for educational and learning purpose. The authors of the book has/have taken all reasonable care to ensure that the contents of the book do not violate any existing copyright or other intellectual property rights of any person in any manner whatsoever. In the event the Authors has/ have been unable to track any source and if any copyright has been inadvertently infringed, please notify the publisher in writing for corrective action. 2

CONTENT Unit - 1 Background Of Crm................................................................................................. 4 Unit - 2 Crm Process ........................................................................................................... 23 Unit - 3 Principles Of Crm .................................................................................................. 44 Unit - 4 Customer Retension ............................................................................................... 51 Unit – 5 Life Time Value Of Customer ............................................................................... 65 Unit – 6 Crm Cycle ............................................................................................................. 85 Unit - 7 Strategies ............................................................................................................... 97 Unit - 8 Customer Loyality................................................................................................ 134 Unit – 9 Customer Complaint Management....................................................................... 152 Unit – 10 Crm Planning..................................................................................................... 166 Unit – 11 Service Marketing ............................................................................................. 189 Unit – 12 B2b/B2c Markets............................................................................................... 214 Unit – 13 Crm Practices .................................................................................................... 242 Unit – 14 Crm Practices .................................................................................................... 256 3

UNIT - 1 BACKGROUND OF CRM STRUCTURE 1.0 Learning Objectives 1.1 Introduction 1.2 Evolution of CRM 1.3 Need for CRM 1.4 Benefits of CRM 1.5 Transaction vs. Relationship orientation 1.6 Summary 1.7 Keywords 1.8 Learning Activity 1.9 Unit End Questions 1.10 References 1.0 LEARNING OBJECTIVES After studying this unit, you will be able to:  Describe nature of CRM  Identify benefits of CRM  State the need of CRM  Describe the nature of Transaction v/s relationship orientation 1.1 INTRODUCTION TO CRM Customer relationship management (CRM) is an approach to manage a company's interactionwith current and potential customers. It uses data analysis about customers' history with acompanyto improvebusiness relationships with customers,specificallyfocusingoncustomerretentionand ultimatelydrivingsalesgrowth. One important aspect of the CRM approach is the systems of CRM that compile data from arange of different communication channels, including a company's website, telephone, email,livechat,marketingmaterialsand morerecently,socialmedia.Throughthe CRMapproach andthe systems used to facilitate it, businesses learn more about their target audiences and how tobestcaterto their needs. Definition 4

Customer relationship management (CRM) is the combination of practices, strategies andtechnologies that companies use to manage and analyze customer interactions and datathroughoutthecustomer lifecycle,withthe goalofimprovingcustomerservicerelationshipsandassisting in customer retention and driving sales growth. CRM systems compile customer dataacross different channels, or points of contact between the customer and the company, whichcouldincludethecompany'swebsite,telephone, livechat, directmail,marketingmaterials and social media. CRM systems can also give customer-facing staff detailed information oncustomers'personalinformation,purchasehistory,buyingpreferences andconcerns. A definition of CRM… Customer relationship management (CRM) is a technology for managing a company’s relationships and interactions with all of its customers and potential customers. The goal is simple: Improve business relationships. A CRM system helps companies stay connected to customers, streamline processes, and improve profitability. When people talk about CRM, they are usually referring to a CRM system, a tool that helps with contact management, sales management, productivity, and more. A CRM solution helps a business to focus on their relationships with individual people — including customers, service users, colleagues, or suppliers — throughout the lifecycle with them, including finding new customers, winning their business, and providing support and additional services throughout the relationship. Who is CRM for? A CRM system gives everyone — from sales, customer service, business development, recruiting, marketing, or any other line of business — a better way to manage the external interactions and relationships that drive success. A CRM tool lets you store customer and prospect contact information, identify sales opportunities, record service issues, and manage marketing campaigns, all in one central location — and make information about every customer interaction available to anyone at your company who might need it. With visibility and easy access to data, it's easier to collaborate and increase productivity. Everyone in your company can see how customers have been communicated with, what they’ve bought, when they last purchased, what they paid, and so much more. CRM can help companies of all sizes drive business growth, and it can be especially beneficial to a small business, where teams often need to find ways to do more with less. NeedandImportanceforCustomerRelationshipManagement  CustomerRelationshipManagementleadstosatisfiedcustomersandeventuallyhigher businessevery time. 5  CustomerRelationshipManagementgoesalong wayin retainingexisting customers.

 Customerrelationshipmanagementensurescustomersreturnbackhomewithasmile.  Customer relationship management improves the relationship between the organizationandcustomers.Suchactivitiesstrengthenthebondbetweenthesalesreprese ntativesandcustomers. 1.2 EVOLUTION OF CRM CRM must start with an industry business strategy, which will offer positive changes in organization and work processes, which are then enabled by Information technology. In 1960s, academic researchers found that the 4Ps marketing framework i.e. product, price, place and promotion was less valuable than ongoing business relationships. By 1980s, marketing teams used to describe his new focus on understanding customer segment and achieving high customer satisfaction. In 1990s, CRM became the umbrella term; computer systems were deployed to support sales and service processes. By late 1990s, the real impact of these systems was outside the corporate world. Explosive growth in the internet usage broadened the concept as Electronic Customer Relationship Management (eCRM) to manage online customers. Now, multi-channel systems are available to support direct, internet and partner channels to allow user to use whatever mode of communication, they pleased. These systems could typically answer many of the questions such as:  How can oneself improve sales activities to have better idea of business improvement.  How one can improve capability for leading the generation, account management and opportunities.  How to make meaningful decisions on measuring the results from marketing campaign.  How to resolve customer service troubles, make queue time shorter, make customer happy by offerings.  All in all, how one can improve customer relationship. To answer these questions, CRM was developed to provide best operating practices in sales, marketing and customer services. This is where, companies started using CRM to store customer history, real time activities accumulation, which each department could bring up a record and see all customer interactions. Essentialfeaturesof CRM CustomerRelationshipManagementis astrategywhichiscustomizedbyan organizationtomanageandadministrate its customers and vendors in an efficient manner for achieving excellence in business. It isprimarilyentangledwithfollowingfeatures:  Customer’sNeeds- An organization can never assume what actually a customer needs. Hence it is extremelyimportant to interview a custo6mer about all the likes and dislikes so that the actual needscan be ascertained and prioritized. Without modulating the actual

needs it is arduous toservethecustomer effectivelyand maintain along-term deal.  CustomersResponse- Customerresponseis the reactionbytheorganizationto thequeriesand activitiesofthecustomer. Dealing with these queries intelligently is very important as smallmisunderstandings could convey unalike perceptions. Success totally depends on theunderstanding and interpreting these queries and then working out to provide the bestsolution. During this situation if the supplier wins to satisfy the customer by properlyanswering to his queries, he succeeds in explicating a professional and emotionalrelationshipwith him.  CustomerSatisfaction- Customersatisfactionisthemeasureofhowtheneedsandresponsesarecollaboratedandde livered to excel customer expectation. In today’s competitive business marketplace,customer satisfaction is an important performance exponent and basic differentiator ofbusinessstrategies.Hence,the moreiscustomersatisfaction; moreisthebusinessandthebondingwithcustomer.  CustomerLoyalty- Customer loyalty is the tendency of the customer to remain in business with a particularsupplier and buy the products regularly. This is usually seen when a customer is verymuch satisfied by the supplier and re-visits the organization for business deals, or whenhe is tended towards re-buying a particular product or brand over times by that supplier.To continue the customer loyalty the most important aspect an organization should focuson is customer satisfaction. Hence, customer loyalty is an influencing aspect of CRM andisalwayscrucial forbusiness success.  CustomerRetention- 1.3 NEEDS FOR CRM We've used HubSpot as an example throughout each of the following sections to offer insight into different use cases for this type of system. 1. Center business growth around your customers. When your business enters the phase of rapid growth, it can be easy for valuable leads to fall through the cracks — after all, friction is a natural result of business growth. But an all-in-one CRM platform like HubSpot can eliminate that friction because it's built with your customers and the customer experience in mind — in fact, it centers everything you do around your customers. HubSpot allows you to architect your business as it appears to your customer and audience. The CRM aligns all of the work your sales, marketing, and service teams do with a variety of natively built tools and integrations — this makes it easy for you all to collectively center business goals and daily work around your customers. 2. Align your sales, marketing, and service team7s.

Cross-team alignment is integral to the success of your business. This alignment — specifically, the alignment between sales and marketing — helps your team streamline all stages of the buyer's journey. In doing so, internal teams will be able to share critical data and customer information so they can work as a cohesive unit. As a result, customers will have a seamless and consistent end-to-end customer experience that makes them want to remain loyal to your brand. HubSpot makes this alignment simple because the platform comes with natively built tools and features — including Sales Hub, Marketing Hub, Service Hub, and CMS Hub — plus a library of integrations. 3. Sync and share data with ease. CRMs like HubSpot streamline time-consuming tasks like data syncing and sharing — manually updating your contact records is a thing of the past. No matter who speaks with a contact (e.g. a sales rep, and service rep, or a marketer), contact records and data are immediately synced and updated in the system for you. By syncing all of your data and every interaction between your team and a customer, your team will have access to accurate records that can easily be shared from within the platform. This makes your CRM a single source-of-truth when it comes to your data — and as a result, your team can create personalized customer experiences with ease. So, what other tasks can a CRM platform like HubSpot automate? 4. Automate daily tasks. CRMs automate other day-to-day tasks, speeding up your time-consuming but necessary work. CRM automation may include data entry and contact record updates after every interaction, as mentioned above, as well as:  Follow-up communication  Email sequences  Sales workflows (e.g. unenrollment trigger workflows, deal workflows, quote workflows)  Chatbot conversations  Lead-to-rep assignment  Lead nurturing campaign  Campaign analytics 5. Create workflows. We just mentioned workflows but let's talk more about them — the best CRM systems offer workflows. Workflows complete and organize sales, marketing, and service processes to save you time. 8 Set criteria that automatically enroll records and takes actions of your choice (e.g. related

to your contact records, deals, companies, quotes, or tickets). With HubSpot (depending on which CRM plan you have) you can create workflows for:  Contacts  Companies  Deals  Quotes  Tickets  Custom objects 5. Simplify customer interactions. Today, there are many opportunities to reach and engage leads and customers online such as live chat, email, video call, and social media. CRM solutions like HubSpot have evolved to meet the challenges of customer-facing teams and reps — they integrate with a wide variety of other services and channels through which your leads and customers engage with your business. For instance, HubSpot has:  Call tracking to prioritize, place, and record calls from the CRM and then log those calls with the associated contact record.  Live chat and a chatbot builder to handle queries and FAQs.  Email tracking to tell you when leads open emails, automate email marketing campaigns, and send well-timed sales follow-up messages.  Social media management tools to monitor brand mentions, comments, and questions on social media and then respond directly from within HubSpot.  Video integrations, like Vidayrd, to send memorable and personalized sales and marketing videos and track engagement. 7. Build custom dashboards and report on the metrics that matter to your business. CRMs make reporting on and analyzing your processes and pipeline simple. The reporting features within a CRM can be customized — such as your dashboards — to help you analyze the metrics that matter most to you. This allows you to identify areas of opportunity and growth to create better customer experiences. With a CRM like HubSpot, create custom dashboards and reports or select from one of the pre-made templates to save you time. Preview those reports in real-time, visualize your CRM data any way you'd like, and share reports with ease by sending individual reports to your team members' email addresses, or automate your reporting emails so they're sent daily, weekly, or monthly. 9

1.4 BENEFITS OF CRM Facilitatesdiscoveryof new customers CRMsystemsareuseful inidentifyingpotentialcustomers. Theykeeptrack oftheprofilesoftheexisting clientele and can use them to determine the people to target for maximum clientagereturns. New customers are an indication of future growth. However, a growing business utilizing CRMsoftware should encounter a higher number of existing customers versus new prospects eachweek. Growth is only essential if the existing customers are maintained appropriately even withrecruitmentof new prospects. Increasescustomerrevenues CRMdataensureseffectiveco- ordinationofmarketingcampaigns.Itispossibletofilterthedataandensurethepromotions do nottarget thosewho havealreadypurchasedparticularproducts. Businesses can also use the data to introduce loyalty programs that facilitate a higher customerretentionratio.Nobusinessenjoys sellingasimilarproduct toacustomer who hasjustboughtitrecently.A CRMsystem coordinatescustomer dataand ensures suchconflicts donot arise. Helpsthesalesteaminclosingdealsfaster ACRMsystem helpsinclosingfasterdealsbyfacilitatingquicker and moreefficientresponsesto customer leads and information. Customers get more convinced to turn their inquiries intopurchases once they are responded to promptly. Organizations that have successfullyimplementedaCRM system haveobserved adrastic decreasein turnaroundtime. Enhanceseffectivecrossandupsellingofproducts Cross – selling involves offering complimentary products to customers based on their previouspurchases. On the other hand, up – selling involves offering premium products to customers inthe same category. With a CRM system, both cross and up – selling can be made possible withinafew minutes ofcross –checkingavailable data. Apartfromfacilitatingquickeroffersto customers,thetwoformsofsellinghelpsstaffingaininga better understanding of their customer’s needs. With time, they can always anticipate relatedpurchasesfrom their customer. Simplifiesthesalesandmarketingprocesses 1 0

A CRM system facilitates development of better and effective communication channels.Technologicalintegrationslikewebsitesandinteractivevoiceresponsesystemscanma keworkeasier for the sales representatives as well as the organization. Consequently, businesses with aCRM have a chance to provide their customers with various ways of communication. Suchstrategies ensure appropriate delivery of communication and quick response to inquiries andfeedbackfromcustomers. Makescallcentersmoreefficient Targeting clients with CRM software is much easier since employees have access to orderhistories and customer details. The software helps the organization’s workforce to know how todealwitheachcustomer dependingupontheirrecordedarchives. Informationfrom thesoftwarecanbeinstantlyaccessedfrom anypoint within the organization. CRM also increases the time the sales personnel spend with their existing customers each day.This benefit can bemeasuredbydeterminingthenumberof servicecalls madeeach daybythesales personnel. Alternatively, it could also be measured through the face – to – face contactmadebythe sales personnel with theirexistingcustomers. Enhancescustomerloyalty CRM software is useful in measuring customer loyalty in a less costly manner. In most cases,loyalcustomersbecome professionalrecommendationsofthebusinessandtheservicesoffered.Consequently, the business can promote their services to new prospects based on testimonialsfrom loyal customers. Testimonials are often convincing more than presenting theoreticalframeworks to your future prospects. With CRM, it could be difficult pulling out your loyalcustomersand makingthem feel appreciated for their esteemed support. Buildsuponeffectiveinternalcommunication A CRM strategy is effective in building up effective communication within the company.Differentdepartmentscansharecustomerdataremotely,henceenhancingteamwor k.Suchastrategy is better than working individually with no links between the different businessdepartments. It increases the business’s profitability since staff no longer have to movephysicallymove whileinsearch ofcritical customer data from otherdepartments. Facilitatesoptimizedmarketing CRMenablesabusinessunderstandtheneedsandbehavioroftheir customers.Thisallowsthemto identify the correct time to market their products to customers. The software gives ideas aboutthe most lucrative customer groups to sales representatives. Such information is useful intargeting certain prospects that are likely to profit the business. Optimized marketing utilizes thebusinessresources meaningfully. CRM software will remain relevant for quiet 11long as long as businesses desire a quick

balancebetween product provision and customer acquisition. Inarguably, the advantages of customerrelationshipmanagementwillremainrelevantaslongasbusinessesdesiretobuildacomp etitiveadvantageover theircompetitors. ElementsofCRM CRM can be broken down into a number of different components which many software vendorshavedevelopedpackagesfor.Forthemostpart,therearethreeareaswhicharecoretosuccess fulcustomerrelationship management:  Customer Service The customer service function in your company represents the frontoffice functions that interact with your customers. These are the business processes thatallow your company to sell products and services to your customers, communicate withyour customers with regards marketing and dealing with the after sales servicerequirements of your customers. Each interaction with the customer is recorded andstoredwithinthe CRMsoftwarewhereitcanberetrievedbyother employeesifneeded.  SalesForceAutomation Yourcompany’ssales departmentisconstantlylookingforsalesopportunitieswith existingandnewcustomers.Thesalesforce automation functionality of CRM software allows the sales teams to record each contact withcustomers, the details of the contact and if follow up is required. This can provide a salesforce withgreater efficienciesasthereislittlechanceforduplicationofeffort.Theabilityfor employees outside of the sales team to have access to this data ensures that they havethe most recent contact information with customers. This is important when customerscontact employees outside of the sales team so that customers are given the best level ofcustomerservice.  Campaign Management . The sales team approach prospective customers in the hope ofwinning new business. The approach taken by the sales team is often focused in acampaign, where a group of specific customers are targeted based on a set of criteria.These customers will receive targeted marketing materials and often special pricing ortermsareofferedasaninducement.CRMsoftwareisusedtorecordthecampaigndetails, customerresponses andanalysis performedaspartof thecampaign. Customer retention is a strategic process to keep or retain the existing customers and notletting them to diverge or defect to other suppliers or organization for business. Usually aloyal customer is tended towards sticking to a particular brand or product as far as hisbasicneedscontinueto be properlyfulfilled. Hedoes not optfortakingarisk in goingfora new product. More is the possibility to retain customers the more is the probability ofnetgrowth ofbusiness.  CustomerComplaints- 1 2 Alwaysthere existsachallenge forsupplierstodealwithcomplaintsraised

bycustomers.Normally raising a complaint indicates the act of dissatisfaction of the customer. Therecan be several reasons for a customer to launch a complaint. A genuine reason can alsoexistduetowhichthecustomerisdissatisfiedbutsometimescomplaintsare launcheddue to some sort of misunderstanding in analyzing and interpreting the conditions of thedealprovidedbythesupplierregardinganyproductorservice.Handling thesecomplaints to ultimate satisfaction of the customer is substantial for any organization andhence it is essential for them to have predefined set of process in CRM to deal with thesecomplaintsand efficientlyresolve it in no time.  CustomerService- In anorganizationCustomerServiceistheprocessofdeliveringinformationandservicesreg arding alltheproductsandbrands.Customersatisfactiondependsonqualityofservice provided to him by the supplier. The organization has not only to elaborate andclarify the details of the services to be provided to the customer but also to abide with theconditions as well. If the quality and trend of service go beyond customer’s expectation,theorganization is supposed to haveagood business with customers. BenefitsofCRMtoorganization,customersandmarket Thebenefitsof doingsoinclude:  Better client relationships. The more you know, and remember, about clients (orcustomers)themoreyourclientsknowyoucareaboutthem.Thisenablesyoutoforgea muchstronger connection andadeeperrelationshipwithyour clients.  Improvedabilitytocross- sell.Themoreyouknowaboutyourclients'needsandwantsthebetter ableyouaretoprovidethe solutionto theirnext problem.  Increased team colloration. This is where many firms who fail to require their executivesto use the CRM fail to reap the benefits of the CRM. I know this from having managedtheimplementationofCRMsoftwarewherethe managementteamthoughtitwasagoodideabut would not learn,or use, the tool themselves.  Improvedefficiencyinservingclients.Again,the moreyouknowaboutclients,thebetterable you are to serve them. If everyone is using the CRM to record their customerinteractions, EVERY client interaction, then others' are able to serve the client with theknowledgeof what has been previouslydiscussedwith theclient.  Greater staff satisfaction. The more1 knowledge your employees have the moreempowered and engaged they are3. Having an accurate and up-to-date CRM

that everyoneuses and has access to helps employees solve client problems. Doing so makes employeesandclients happy.  Increased revenue and profitability. Once everyone learns, and uses, the CRMproductivityincreases,salescyclesdecrease,youhavetheabilitytoprovideadditi onalproductsand servicestoclients andclient satisfaction increases.  Cost savings. While the start-up of a CRM software is expensive and time- consuming,over time the benefits far outweigh the costs. Members of the sales team are able tobetter schedule meetings with prospects in the same geographic area. Client-service repsare better able to resolve a client's concern. You now have a central client and prospectdatabasethateveryonecanaccessratherthaneveryonekeepingaseparate spreadsheetorcontactdatabaseon theircomputer.  Less client attrition. When a client is engaged with only one member of a professionalservices firm, the risk of attrition is 40%. When five or more partners are involved in aclientrelationship, therisk ofattritionfalls to less than 5%. 1.5 TRANSACTION VS. RELATIONSHIP ORIENTATION While all marketing efforts focus on generating sales and gaining clients, transactional and relationship marketing approach sales differently. Transactional Marketing: Aims to secure a one-time sale from a large number of customers Relationship Marketing: Aims to encourage repeat purchases from a defined pool of customers When choosing between the two strategies, your choice largely depends on who you view as your ideal customer, the type of relationship you want to have with them post-sale and the product you are selling. In this blog, we will discuss the ins and outs of transactional and relationship marketing and how to apply the strategies to your business model. What is Transactional Marketing? When you think of the word transaction, you think of a sale. Well, that’s what it is. Transactional marketing definition: the number of sales transactions registered, the profit per sale, and the cost of each purchase. The transactional approach leverages point-of-sale promotion, which is a key element of the market1ing mix: 4

 Product - What consumer needs does your product meet?  Price - How will you price your product so that it is attractive yet profitable?  Place - Where will you distribute your product?  Promotion - How will you get the word out? Transactional marketing aims to maximize the number of sales by constantly attracting new customers, rather than encouraging repeat purchases with the buyer, like relationship marketing. A sales pitch on QVC, which if you are unfamiliar, is a shopping channel that specializes in televised home shopping, is a great example of this type of strategy. When you turn on this channel, you will see many different products sold throughout the day. The goal of each product demo session is to sell as many items within a specified time. The product manufacturers don't take the time to engage with the audience and build a relationship. Instead, it's a straightforward, one-way conversation where the moderators use discounts, incentives, and buzzwords (the clock is ticking) to generate as many sales as possible. What is Relationship Marketing? As opposed to transactional marketing, relationship marketing is focused on, well you guessed it, the relationship with the customer. The goal is to create a connection that ensures customer retention and repeat purchase. This strategy takes more time to nurture, as all relationships do. Relationship marketing strategies include loyalty programs, social media groups, and increased customer service training. These marketing efforts are investments in the promise of long-term sales. When implementing this strategy, you'll want to ask yourself questions like: What is the customer looking for? Would they find this valuable? Do they want to see this ad? A great example is a courtesy call from the customer service team. A simple check-in to poll or survey the satisfaction level from the customer builds your relationship with them and gives insights and data to share internally. Courtesy calls are a great way to increase the level and quality of contact between customers and the company and build a greater understanding of individual customers' needs and preferences. Combining Transactional and Relationship Marketing You might see how both strategies organically co-mingle already, so let’s discuss how they work together a bit more. The first point of commonality is the customer. Whichever strategy you chose to deploy, you must understand your customer. Where do the1y conduct product research? Where do they shop? What is their typical budget? 5

The customers that are pulled in through transactional marketing can be nurtured through relationship marketing. This way, those customers that you brought in will stick around. And, you want your customers to stick around! On the flip side, customers who are nurtured through relationship marketing can be convinced to make another purchase in a transactional way, such as a discount. As you can see, the two strategies go hand in hand. Transactional and Relationship Marketing Differences As we talked about earlier, the difference between the two strategies centers on the fact that one is focused on sales and one focuses on customers. This comparison chart helps clearly outline the difference between the two: These additional points will help you clearly understand what makes each strategy different and unique: 1 6

1. Transactional marketing is based on a single sale formula and geared towards short term benefits. 2. Relationship marketing promotes customer loyalty and improving ways of doing business for long-term customer retention. 3. In transactional marketing, customer interaction is minimal, whereas relationship marketing is often. 4. Transaction-oriented efforts focus on increasing the number of sales, whereas relationship-oriented actions focus on the customers. 5. Transactional efforts lead to low customer commitment, and relationship efforts lead to higher commitment. Benefits and Pitfalls of Transactional Marketing Like any marketing strategy, there are bound to be benefits and pitfalls. It’s the nature of business. With transactional marketing, here’s what to pay attention to: Low costs Low cost is a good thing, so we'll mark this as a benefit. The cost of running a point-of-sale promotion can be smaller than running a TV marketing campaign. Another advantage of running point-of-sale promotions is that they are simple and easy. Little emotional attachment A lot of transactional customers are looking for low prices because their primary concern is the price. This means they probably aren't going to be long-term customers as they are looking for a short-term connection. Unless you maintain the pricing strategy or nurture the relationship we discussed earlier in the blog, they will seek alternative options. This is a downfall as competitors could undercut your pricing in the future. Inventory turnover Here we will count this as a benefit — we know holding and managing inventory is a high cost, and transactional marketing tries to quickly reduce holding costs by getting a product off the store shelf. By clearing out discounted items, you can make room for more in-demand items, generating higher revenue. *Tip: transactional marketing is especially great at clearing out seasonal inventory or items that don't sell out promptly. Benefits and Pitfalls of Relationship Marketing Relationship marketing presents broader, more long-term goals. Here are the important pitfalls and benefits to pay attention to: 1 7

Significant ROI “Relational marketing increases customer retention rates by 5% and increases profits from 25% to 95%” – Reichheld & Schefter How can this be? Working with previous customers rather than attracting new customers can be more cost-effective, just plain and simple. It’s 5-25 times more expensive to gain a new customer than retain an existing one. Positive reviews You've heard the saying, \"It takes two to tango,\" well, it's true. In relationship marketing, you have to develop a connection genuinely, so you need to ask for feedback. And as we've learned, reviews are an important part of the customer journey. And, hey, customer reviews give you great insight into what you are doing right, what to improve, and ultimately allows you to serve your customers better. Ask questions like, What do you want to see from us? What do you like about our product/services? What would you like to see more/less of? More feedback Customer feedback is one of the most valuable assets you can rely on. The relationships you have built (psst...relationship marketing) make them more willing to provide opinions on areas of improvement. An important part of feedback is acting upon it; when a customer sees that you take their opinion seriously, it builds and grows trust, but it proves you're listening. Transactional Marketing Example Some marketers argue that the 'loyalty era' of marketing is dying out. According to recent consumer research from Kantar Retail, 71% of consumers now claim that loyalty incentive- programs don't make them loyal at all. Instead, consumers look to brands regarding their relevance at the moment. Let's look at an example of how the brand can play less of a role in transactional marketing experience. Imagine that the fence around your houses needs mending. You have the lumber, the nails and the paint, but are missing a hammer. You drive to the local hardware store where you find a self full of hammers at various price points. As a marketer, you're not as familiar with the different brands as a handyman/handywoman may be, and to be honest, they all look the same to you. So, you evaluate the products based on the 4Ps as any marketer would.  Product: Most of the metal hammers appear the same, but one hammer has a cushioned grip that feels nicer than the rest.  Price: All of the products are priced comparatively, except the hammer with the cushioned grip, which is slightly more expensive. 1 8

 Promotion: The hammer with the cushioned grip has a tag attached to it offering one free packet of nails with purchase. None of the other hammers have such offers attached to them, making the higher price seem like more of a bargain.  Place: The hammers are located right next to the nails, so you can easily see the prices and calculate the extra value you'd be getting. Since you don't buy hammers often (and doubt you'll buy one again anytime soon) you opt for the hammer that has a promotion attached to it. Relationship Marketing Example Getting someone to purchase your product over and over again, can be a testament to the quality of your product or service. Achieving this goal requires investing in the relationship you have with your customer, but the time and money you spend doing can be worth the investment. According to one study, engaged customers spend over 23% more than an average customer. Here are two examples of brands using the relationship marketing model. 1.6 SUMMARY Customer relationship management (CRM) is an approach to manage a company's interactionwith current and potential customers. It uses data analysis about customers' history with acompanyto improvebusiness relationships with customers,specificallyfocusingoncustomerretentionand ultimatelydrivingsalesgrowth. A CRM system gives everyone — from sales, customer service, business development, recruiting, marketing, or any other line of business — a better way to manage the external interactions and relationships that drive success. A CRM tool lets you store customer and prospect contact information, identify sales opportunities, record service issues, and manage marketing campaigns, all in one central location — and make information about every customer interaction available to anyone at your company who might need it. Explosive growth in the internet usage broadened the concept as Electronic Customer Relationship Management (eCRM) to manage online customers. Now, multi-channel systems are available to support direct, internet and partner channels to allow user to use whatever mode of communication, they pleased. CRMs make reporting on and analyzing your processes and pipeline simple. The reporting features within a CRM can be customized — such as your dashboards — to help you analyze the metrics that matter most to you. This allows you to identify areas of opportunity and growth to create better customer experiences. CRMsystemsareuseful inidentifyingpotentialcustomers. Theykeeptrack oftheprofilesoftheexisting clientele and can use them to determine the people to target for 1 maximum clientagereturns. 9

CRMdataensureseffectiveco- do ordinationofmarketingcampaigns.Itispossibletofilterthedataandensurethepromotions nottarget thosewho havealreadypurchasedparticularproducts. While all marketing efforts focus on generating sales and gaining clients, transactional and relationship marketing approach sales differently. Transactional Marketing: Aims to secure a one-time sale from a large number of customers. Relationship Marketing: Aims to encourage repeat purchases from a defined pool of customers 1.7 KEYWORDS Customer relationship management (CRM) is the combination of practices, strategies andtechnologies that companies use to manage and analyze customer interactions and datathroughoutthecustomer lifecycle,withthe goalofimprovingcustomerservicerelationshipsandassisting in customer retention and driving sales growth. Customersatisfactionisthemeasureofhowtheneedsandresponsesarecollaboratedanddelivered to excel customer expectation. In today’s competitive business marketplace,customer satisfaction is an important performance exponent and basic differentiator ofbusinessstrategies. As opposed to transactional marketing, relationship marketing is focused on, well you guessed it, the relationship with the customer. The goal is to create a connection that ensures customer retention and repeat purchase. This strategy takes more time to nurture, as all relationships do. 1.8 LEARNING ACTIVITY 1. Define CRM. ___________________________________________________________________________ ___________________________________________________________________________ 2. State the Benefits of CRM ___________________________________________________________________________ ___________________________________________________________________________ 1.9 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Define CRM? Explain the scope of CRM 2. Elaborate about the nature of CRM and its relevance in present scenario. 3. What are the criteria that determine wh2ether an organization’s CRM practices are effective? 0

4. Describe the evolution of CRM 5. Why should a company use CRM? Long Questions 1. Identify the typical need of Customer management in today’s competitive world. 2. Critically analyse the evolution and present state of customer relationship management in India. 3. What are the different types of CRM? 4. What are the benefits of using CRM? 5. Identify and discuss CRM functions? B. Multiple Choice Questions 1. In ___ year PeopleSoft got expanded from their original human resources platform a. 1990s b. 1980s c. 1960s d. 1970s 2. EAI stands for ___ a. Enterprise Application Integration b. Equal Appearing Interval c. None of the above d. External Authoring Interface 3. ___ was developed as a Linux program. However, it is still compatible with Windows. a. Telemation b. SAP c. Oracles d. PeopleSoft 4. A successful CRM increases production and profit throughout the ___. a. Customer life cycle b. Organization life cycle c. System life cycle d. Business life cycle 5. ___ combines the information of the customer that flows through different departments and customer channels a. CRM Architecture b. CRM life cycle 2 c. CRM programs 1

d. CRM coding Answers 1-a, 2-a, 3-a. 4-a, 5-a 1.20 REFERENCES References book  Aswathappa, K. (2002). Customer Relationship Management. New Delhi: Tata McGraw-Hill.  Dessler, G. (2012). Customer Relationship Management. New Delhi: Prentice-Hall of India.  Decenzo, A. & Robbins P Stephen. (2012). Personnel/Customer Relationship Management. New Delhi: Prentice-Hall of India.  Ivancevich, M John. (2014). Customer Relationship Management. New Delhi: Tata McGraw-Hill. Website  http://crm-ecrm.blogspot.com/2008/07/rollout-and-systems-hand-off.html  https://www.managementstudyguide.com/features-of-crm.htm  http://www.oppapers.com/subjects/different-kinds-of-approaches-to-crm- page1.html 2 2

UNIT - 2 CRM PROCESS STRUCTURE 2.0 Learning Objectives 2.1 Introduction 2.2 Objectives of a CRM Process 2.3 An Insight into CRM 2.4 E-CRM and m-CRM Understanding. 2.5 Summary 2.6 Keywords 2.7 Learning Activity 2.8 Unit End Questions 2.9 References 2.0 LEARNING OBJECTIVES After studying this unit, you will be able to: 2 3  Describe objective of CRM procress  Identify scope of human resource  State an insight to CRM  List the benefits of E-CRM

2.1 INTRODUCTION Customer relationship management (CRM) involves all processes to capture customers and maintain a relationship with them. Other processes include the management of customer data, information analysis, and generating reports to gain insights. CRM covers all aspects of the business operation that involves customers, such as sales, business development, sales, marketing, and customer service. Therefore, CRM tools are integral in storing information and executing these processes. They also help facilitate other procedures such as integration with different business workflows. These solutions centralize many operations that allow you and your team to manage marketing campaigns, create sales strategies, identify opportunities, minimize risks, and more. One important aspect of the CRM approach is the systems of CRM that compile data from arange of different communication channels, including a company's website, telephone, email,livechat,marketingmaterialsand morerecently,socialmedia.Throughthe CRMapproach andthe systems used to facilitate it, businesses learn more about their target audiences and how tobestcaterto their needs. 2.2 OBJECTIVES OF A CRM PROCESS As anyone who is into business knows, the customer is king. You would want them to get the best experience when buying your products or availing of your services. But you can only do that if you have enough relevant information about them – their tastes, needs, wants, purchasing bias, and partiality. Giving an optimal customer experience is not without cost. This is why you must put an efficient system or process in place that will provide a positive experience to customers and result in business growth and profitability. Later on, you will find that the benefits and returns will far outweigh the investments you poured into building customer relations. Building customer relations If you think a CRM system is only for large businesses, now is the time to shatter that myth. A CRM is an essential tool for a freelancer, sole entrepreneur, startup, or global corporation. The reasons why a CRM system matters much for a business are far too many if we list down specifics and details. So for this section, we go for the big picture. Here are some of them: Discover – by uncovering valuable insights and information about your customers, you are in the position to understand them better – who they are, how and why they buy your products. Identifying and unravelling customer trends and interactions is crucial because you can readily anticipate their needs and address their issues and keep you ahead of competitors who may not be as attuned as you are to customers’ pulse. 2 4

Organize – you have the ways and means to keep everything in order – from the whole customer life cycle to customer channel engagement, from sales process automation to marketing campaigns, and from business analytics to storing and accessing customer data, among others. An otherwise string of complex situations and convoluted processes are all streamlined and automated to give you a clearer perspective and solid grasp of things. Optimize – you can improve, build, and manage customer-related operations through a host of CRM tools. These are designed to give you the flexibility and convenience you need to be responsive to your customers and, at the same time, make it easy for customers to do business with you. (CRM) process The customer relationship management (CRM) process refers to the steps and decisions businesses make to manage and improve their relationships with leads, prospects, and customers. A CRM system is a useful tool in this process as it streamlines operations and customer interactions, making them more efficient and effective. In this article, we outline six steps and the roles sales, marketing, and support teams play in the overall CRM process. 2 5

1. Generate Brand Awareness The first step in the CRM process is to make your potential customers aware of your products and services through different marketing channels like social media and advertisements. The marketing team begins this task by researching your target audience’s demographics, purchasing behavior, interests, and preferences. The team also creates customer personas to segment the audience into groups. Then, you can launch marketing campaigns tailored to your target audience’s interests. Knowing your customer demographics and creating their persona helps guide you in creating effective marketing messages that resonate with your customer base. 2 6

A buyer persona is a fictional character representing your ideal customers, including details such as their demographics, behavioral interests, values, and challenges. This helps businesses identify their specific target market and understand what they need to provide their customers. An excellent CRM system collects data, uncovers patterns in the behavior of past leads, and shows you which approaches lead to more conversions. Use this data to customize your marketing campaigns based on what appeals most to your target audience to convert more prospects into customers. 2. Acquire Leads After you have introduced your brand to your potential customers, the second step is to generate leads. The sales or marketing team (or both) engages with your target audience via available communication channels. For example, the marketing team could use the sign-up form on your website to encourage visitors to subscribe to newsletters. The sales team can take advantage of your CRM’s live chat function to respond to visitors and request their contact information. 2 7

CRM platforms with lead generation and enrichment tools help you pull in important information from your site visitors. This makes it easier to personalize prospect outreach. Lead generation is the process of attracting leads or potential customers into your sales funnel. This is done through multichannel engagement and by generating content that captures the interest of your audience. It also involves nurturing them through the buying process to increase the chances of turning them i82nto customers.

3. Convert Leads Into Customers Once you have captured the attention and interest of your prospects, the next step is to convert them into paying customers. This is done through a combination of content marketing and marketing automation. The CRM analyzes and captures contacts and leads’ interaction with these activities, and the sales team gauges lead interest and builds further trust with them until they decide to make a purchase. Lead conversion varies based on the offering of a business. For example, a lead conversion tactic for a retail business might involve sending a series of promotional marketing emails to encourage potential customers to buy. Meanwhile, a lead for a high-value service, such as real estate, will include more complex business processes like sending and revising proposals, contract and cost negotiations, and multiple follow-up conversations before a purchasing decision is made. 4. Nurture Leads Nurturing leads is crucial in building customer loyalty wherein customers keep coming back to you and making repeat purchases. One of the most effective ways to nurture customers is through email marketing where you continuously share relevant content based on their preferences. This is where email marketing list segmentation plays an essential role because you shouldn’t employ a one-size-fits-all approach since your c2ustomers have varied preferences. Therefore, 9

build various email marketing distribution channels based on factors such as past purchase history, demographics, and pages visited on your site. Here are some examples of content sales professionals can use to nurture their leads:  Introductory product demo videos  Whitepaper with customer case studies and testimonials  Survey about customer goals or product preferences  Blog posts about key features of a product  Email newsletters about useful services  Link to relevant webcasts or podcasts  How-to articles or e-books 5. Provide Quality Customer Support The CRM process does not end when a customer makes a purchase. Your business needs to retain customers for it to grow—and this is where your support team comes in. Excellent customer service keeps clients coming back for your products or services. Make sure you deliver superior service, preferably via various communication channels (live chat, email, and phone) whenever your customers need it. Leverage your CRM’s help desk and service system to understand your customer’s user experience after they make a purchase. It is im3portant to get honest feedback from them to understand the changes that you need to make to0improve their experience.

Robust CRM systems provide your support reps with the data and resources they need to resolve customers’ issues efficiently (e.g., customers do not need to rehash their information since reps can simply look it up in the CRM). Also, the CRM provides you with communication tools (chat, email, or phone) that you can use to immediately respond to customer complaints as soon as they crop up. 6. Drive Upsells & Cross-sells Once you’ve built and established your customer database, the goal is to introduce repeat buyers to your other products or services—whether that is an upgrade to their usual purchase or a completely different product that they may also be interested in based on their purchase preferences. To do this, you can use two strategies: cross-selling and upselling. Upselling is a sales strategy used to convince existing customers to buy additional products or upgrades related to their original purchase. Examples of upselling include offering warranties in addition to a gadget and letting a customer know that another product offers more features than the one they chose. Grouping together several varieties of a perfume brand to create a new bundle is also considered upselling. 3 1

Meanwhile, cross-selling is a sales strategy used to obtain more value from a deal or sales transaction. It involves suggesting additional products or services complementing an existing purchase so you can generate more revenue from one deal from customers who are already in the buying mindset. For instance, cross-selling works when a product is paired with a complimentary service such as purchasing a laptop sleeve after buying an actual laptop. Use a CRM to organize your customer list according to purchase history and send custom email templates about relevant products for each group. You can also set reminders for regular check-in calls with repeat customers. This is your chance to ask them for feedback about your product or service and how they think you can improve their experience. Key Benefits of Incorporating Software Into Your CRM Process A robust CRM solution offers tangible benefits that help make the CRM process more effective and drives sales return on investment (ROI). There are different types of CRMs to choose from depending on your business needs, but all of them contribute to the growth of your business in ways that help you improve your sales process, manage marketing initiatives, and offer quality customer support. Following are the factors to consider knowing which CRM is the right for business. 3 Implementation: Implementation plays a vital2role. If you are changing or installing new

software to the existing process, a phase of implementation has to be gone through. Understand if implementation factors like training and testing and the associated cost incurred would fit your requirements. User Adoption – The new change should be easy to adopt by the users of the team. Involving the teams in selecting the CRM process helps associates accept the change and the new system. In addition, the more ownership the employee gets in choosing the new tool, the easier it is to adapt to the change. Mobility – Employees in the teams are more adoptive to the newest technology. So it is critical to choose a CRM tool that can be updated regularly and remain current with the latest technology. Customization – Each business process is unique and different, and the demands are other too. The CRM you choose must be flexible and versatile to handle your business processes. It should also be adaptive and scalable to the changes in business processes without any replacement. Compatibility – It is essential to choose a CRM compatible with other existing applications involved in the process. Product Demo – As a part of the user adoption, it is crucial to access a product demonstration. This would help you understand the strengths and weaknesses of the tool and understand if it would be the right tool for your business needs. Reporting – While you sit back and enjoy the product’s functionalities, it is essential to check on the reporting capabilities that can assist you to thrive amidst your competitors successfully. Customer relationship management is the lifeblood of solid businesses. Develop a CRM process to ensure you’re investing your time and energy efficiently. Although CRM seems like an internal process, it will result in customers having the best possible experience doing business with you. The goal of any solid CRM process is business growth and profitability. CRM boosts productivity by allowing you to focus on the highest quality leads and deals so you can reinvest the time back into them. 2.3 AN INSIGHT TO CRM A customer relationship management (CRM) solution helps you find new customers, win their business, and keep them happy by organising customer and prospect information in a way that helps you build stronger relationships with them and grow your business faster. CRM systems start by collecting a customer's website, email, telephone, social media data, and more, across multiple sources and channe3ls. It may also automatically pull in other information, such as recent news about the co3mpany's activity, and it can store personal

details, such as a client's personal preferences on communications. The CRM tool organises this information to give you a complete record of individuals and companies overall, so you can better understand your relationship over time. A CRM platform can also connect to other business apps that help you to develop customer relationships. CRM solutions today are more open and can integrate with your favourite business tools, such as document signing, accounting and billing, and surveys, so that information flows both ways to give you a true 360-degree view of your customer. And a new generation of CRM goes one step further: Built-in intelligence automates administrative tasks, like data entry and lead or service case routing, so you can free up time for more valuable activities. Automatically generated insights help you understand your customers better, even predicting how they will feel and act so that you can prepare the right outreach. Typesof CRM CRM can be divided not only into different areas, but also into four components, each used byeachdepartment asrequired. Thesecomponents are: AnalyticalCRM The analytical component of CRM is where customer data is collected and evaluated. CRMsoftwareandtheoptionsitmakes possibleplaya centralrolein thisfunction.Whatdatacanyoursoftware collect? In what ways can this data then be analyzed and evaluated? These questionsmust be taken into consideration when selecting CRM software because effective customerrelationship management cannot be achieved without reliable data evaluation. Methods borrowedfrom the field of business intelligence are used for this purpose, especially data mining – i.e. thesystematic statistical evaluation of large volumes of data. This helps to identify trends and canverify whether certain measures have been successful while also reporting on whether there wereany(perhaps unexpected) sideeffects. OperationalCRM The task of operational CRM is to translate the findings of analytical CRM into concretemeasures. Among other things, this includes sorting customers into different categories. Thishelps to evaluate the relative importance of each customer to the company, the market sector inwhich the customer is active, whether the customer could be interested in any other aspects ofthemarket,whethertheorderpotentialintheidentifiedcoresectorhasyetbeen exhausted,andmore. In addition, operational CRM also gathers further data which, in conjunction with thesoftware,helps to giveamore3precisepictureof each customer. 4

CommunicationalCRM Communicational CRM manages various communication channels so that a coordinated contactwith the customer can be maintained. If, for example, a customer has been contacted vianewsletter, this can then be followed up with a personal call. This coordination ofcommunicationmethodsmeans thecompanycanbuilduponthe groundworkperformedbyeach successive measure. In the absence of such coordination, some of these measures wouldpresumablybein vain,orperhapseven counterproductiveifthecustomerthen feelsharassed orpoorlylooked-after. CollaborativeCRM Just like communicational CRM, collaborative CRM serves to coordinate. However, this task isnotaboutcoordinatingexternalactionsbutconcernscoordinationacrossthecompany.Thanksto CRM software, all departments involved in customer relationship management work with thesame data, but this does not necessarily mean their efforts are coordinated. Collaborative CRMallowsacompany-wideapproach,which determines clear goals and responsibilities. 2.4E-CRM AND M-CRM UNDERSTANDING. Today the internet is a significant economic and social force and has brought more than just technological change to the business world. The internet has changed the traditional business model of organisation and forced the organisation to embrace operational changes. Difference between CRM and e-CRM is that e-CRM refers to electronic customer relationship management or simpler CRM that is more web-based. The concept of CRM is defined as “It is the process of acquiring retaining and growing profitable customer.” It requires a clear focus on the service attributes that represent value to the customer and creates loyalty. It is a comprehensive sales and marketing approach to building long term customer relationship management and improving business performance. In order to be successful organisation need to better understand consumer needs. It is important for the organisation to understand these needs and be in a position to act quickly. CRM is about attracting developing and maintaining a profitable customer relationship over time. This focus is critical where a customer may change the provider with a click of a mouse. Simply CRM is a strategy to identify and satisfy the customer and as a result, will lead to a stronger relationship. E-CRM THE ADAPTATION OF CRM IN AN E-COMMERCE ENVIRONMENT e-CRM derive from CRM techniques which leveraged call centre and direct marketing technology to market mass-produced goods and services to small market sub-segment. e- CRM is essentially the adaptation of CRM in an e-commerce environment and helps build and sustain customer relationship using the ne3t. It is a net-based business strategy that requires the development of a set of an integr5ated software application to deal with all

aspects of customer interaction like sales, marketing field support and customer service. e- CRM exercise would mailing focus upon acquiring new customer enhancing profitability of existing customer segment high-value customer and maximise life true value of profitable customer. CRM is a business strategy for acquiring and maintaining the right customer over the long term within this framework a number of channels exist for interacting with customer one of these channels is electronic and has been labelled e-commerce or e-business. This electronic channel does not replace the sales force, call centre or ever the fax. It is simply another extension. CRM: NDIS, Aged Care, Fostercare e-CRM systems are able to capture data is one place and integrate it seamlessly throughout various departments and processes. Ideally e-CRM allows an organisation to tailor its products and services to each customer satisfaction. CRM may be used to create a personalised one to one experience that will give the individual customer a sense of being cared for thus opening up new marketing opportunity based on the performance and history of the customer. CRM is a customer focus business strategy that aims to increase customer satisfaction and customer loyalty by offering service to each customer. With the movement of business application to the internet, CRM has enhanced organisations capabilities by providing access to its customers and supplier via the web. This web experience and communication through the wireless web is called e-CRM. WEB2.0 IS ADVANCING E-CRM PROVIDING FEATURES THAT ARE ATTRACTIVE TO CUSTOMER The internet is advancing e-CRM. It provides features that are attractive to customer and business organisation. For example, many e-CRM systems provide the customer with a self-service browser-based window to place order check order status review purchase history request additional information about products sends e-mail and engage in a host of other activities. These capabilities provide customers with freedom in terms of place and time. The customer no longer is limited to contacting an organisation during regular business hours and the organisation does not have to provide a live contact on the other end for customer enquiries and request. CRM applications are designed around produ63cts and job function. The applications are

designed for the corporate department or the individual employee to access his customer- related intelligence and to provide customer service more effectively. In e-CRM, on the other hand, all applications are designed for the entire enterprise including all customers, suppliers and partners. e-CRM refers to electronic customer relationship management or simpler CRM that is more web-based. The main difference between CRM and e-CRM are that in CRM customer contact is initiated through traditional mean of telephone, retail store or fax where e-CRM in addition to telephone customer contact can initiated through internet, email, wireless and latest technologies. TECHNOLOGICAL DIFFERENCE BETWEEN CRM AND E CRM The Table 1 highlights some of the differences between CRM and eCRM based on certain criteria. Criterian CRM e-CRM One Tow Three System interface Work with back end Design for front end application application through ERP which in turn interface with back system end application through ERP system data ware house and data mart. Customer contact Customer contact initiated In addition to telephone contact through traditional means of also initiated to internet e-mail retail store telephone and fax. wireless mobile & PDA technologies. System overhead Web enabled applications No such requirements the browser (client computers) required a Pc client to is the customer portal to E-CRM. download various application. personalised view for Highly individualized dynamic & personalised view based on customisation & difference audience are not purchases & preferences are personalization of possible. Each audience information possible. Individual individually customizes the views. customisation required programmed of changes. System focus System is designed around System is designed around customer needs. products and job function. 3 7

Criterian CRM e-CRM System and Implementation is longer and Reduced time and cost. System modification management is costly because implementation & expansion can maintenance the system is situated at be managed in one location on various locations and on one server. several servers. PAPERLESS – EFFICIENT – COMPLIANT. A CRM Solution For NDIS And M-CRM In the age of hyper connectivity, the use of mobile Internet has become more widespread and has made its way into the professional sphere. Therefore, in order to efficiently respond to the needs from the field, your remote sales force need a tool to help them: a mobile CRM, also know as M-CRM M-CRM definition M-CRM is also called M CRM. Bertrand Bathelot, associate professor of marketing and founder of the website definition-marketing.com, explains it refers to « all applications, services and content created and optimized for mobile devices, and intended to optimize and improve Customer Relationship». M-CRM covers a great range of mobile applications. However, for this article, we will focus on those developed by Customer Relationship Management software publishers. In order to make their offer even more complete, some publishers offer access to their CRM solution from mobile devices (smartphones and tablets). However, these M-CRM applications do not have to be a perfect replica of the full software. By becoming mobile, these CRM must also become lighter for a simpler and more ergonomic use. Why is M-CRM so important? Long gone are the days when the professional sphere was limited strictly to the four walls of the office. Now, we can access everything, all the time. We are connected everywhere, to everything, in every moment. Our office fits in the palm of our hand. We cannot imagine doing without one, and in France, 73% of the population (2017 Digital trends barometer published by the French Digital Agency) has one: a smartphone of course! To the question “what devices do you use most often to go on the Internet”, 42% of French answered “a smartphone”, compared to only 38%3 for computers and a meagre 7% for tablets. 8

Information is only one click away, and is updated in real time. As a result, our expectations too, are heightened. We expect information to be available and up-to-date in real time. In short, we want more reactivity.. M-CRM for a more agile CRM Having up-to-date, easily accessible data from anywhere and at any time is a true competitive advantage for companies. Particularly so for sales teams who often work on the move. This distance from the head office sometimes generates problems in the flow of information, both upstream and downstream, which, in turn, is detrimental for business. Therefore, your sales force needs a powerful tool: a M-CRM. With a M-CRM, they can update, synchronize and share information with all the departments of the company, and vice versa. With a M-CRM, they can be as efficient on the go with a tablet or a smartphone as if they were in the office. In addition to saving time for your sales force, it ensures increased productivity, performance and quality for sales management. Mobile sales: a key driver of sales effectiveness The leading M-CRM applications all feature a number of common decisive advantages, such as options to:  View and edit contacts in real time  Scan business cards to seamlessly upload them to the CRM  Create and manage business opportunities remotely  Notifications and reminders to organize tasks and prioritize actions  Synchronize files and their calendar  Geolocation to plan their itinerary to their next sales appointment  Access to dashboards and reports 3 9

This list, which is far from exhaustive, highlights the most common features of M-CRM solutions. Of course, if you need other features, ask your publisher if they can set it up for you. After all, nothing ventured, nothing gained! M-CRM: what you need to remember M-CRM meets the expectations of immediacy and need for real-time information, at the same time it simplifies the work of remote sales forces. It enables them to access customer data, manage their business opportunities, prioritize their actions, share their calendar in real time, geolocate their customers and always be up-to-date with new documents made available to them. Lastly, remember that a M-CRM is of little value if it is not synchronized. This is key to offer a unified experience to your customers on the one hand, and to simplify internal processes within the company on the other. And before we go, here’s a quick tip for you: before choosing your CRM publisher, and if you need a mobile app, first check whether it is available on the Apple Store and Google Play to make sure it is compatible with all mobile operating systems. 2.5 SUMMARY Customer relationship management (CRM) involves all processes to capture customers and maintain a relationship with them. Other processes include the management of customer data, information analysis, and generating reports to gain insights. CRM covers all aspects of the business operation that involves customers, such as sales, business development, sales, marketing, and customer service. The reasons why a CRM system matters much for a business are far too many if we list down specifics and details. So for this section, we go for the big picture. Here are some of them: Discover – by uncovering valuable insights and information about your customers, you are in the position to understand them better – who they are, how and why they buy your products. Identifying and unravelling customer trends and interactions is crucial because you can readily anticipate their needs and address their issues and keep you ahead of competitors who may not be as attuned as you are to customers’ pulse. Organize – you have the ways and means to keep everything in order – from the whole customer life cycle to customer channel engagement, from sales process automation to marketing campaigns, and from business analytics to storing and accessing customer data, among others. An otherwise string of complex situations and convoluted processes are all streamlined and automated to give you a clearer perspective and solid grasp of things. Optimize – you can improve, build, and manage customer-related operations through a host of CRM tools. These are designed to give you the flexibility and convenience you need to be 4 0

responsive to your customers and, at the same time, make it easy for customers to do business with you. A CRM platform can also connect to other business apps that help you to develop customer relationships. CRM solutions today are more open and can integrate with your favourite business tools, such as document signing, accounting and billing, and surveys, so that information flows both ways to give you a true 360-degree view of your customer. e-CRM derive from CRM techniques which leveraged call centre and direct marketing technology to market mass-produced goods and services to small market sub-segment. e- CRM is essentially the adaptation of CRM in an e-commerce environment and helps build and sustain customer relationship using the net. 2.6 KEYWORDS Discover – by uncovering valuable insights and information about your customers, you are in the position to understand them better – who they are, how and why they buy your products. Organize – you have the ways and means to keep everything in order – from the whole customer life cycle to customer channel engagement, from sales process automation to marketing campaigns, and from business analytics to storing and accessing customer data, among others. e-CRM refers to electronic customer relationship management or simpler CRM that is more web-based. The main difference between CRM and e-CRM are that in CRM customer contact is initiated through traditional mean of telephone, retail store or fax where e-CRM in addition to telephone customer contact can initiated through internet, email, wireless and latest technologies. 2.7 LEARNING ACTIVITY 1. Define MCRM. ___________________________________________________________________________ ___________________________________________________________________________ 2. State the objectives of CRM process. ___________________________________________________________________________ ___________________________________________________________________________ 2.8 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Define MCRM? Explain the scope of MCRM 2. Identify and discuss CRM process? 4 3. Elaborate about the nature of eCRM a1nd its relevance in present scenario.

4. What are the criteria that determine whether an organization’s eCRM practices are effective? 5. Critically analyse the evolution and present state of MCRM in India. Long Questions 6. What ise-CRM? Explain the various types of Tour packages? 7. Givean insight to CRM. Explain it in detail. 8. Explain the objectives of CRM process. 9. Identify the typical need of Customer Relationship Management in today’s competitive world. 10. Explain the CRM process. B. Multiple Choice Questions 1. By integrating customer databases with websites, marketing can be improved and the benefits of electronic customer relationship management (e-CRM) then include: a. Achieve mass customisation b. Targeting more cost-effectively c. Increased depth, breadth, and nature of the relationship d. All the above are correct 2. ______ is a key e-CRM technique to follow-up a customer when they abandon a shopping cart to encourage them to buy. a. Personalisation b. Referral, recommendation or advocacy c. Reactivation d. None of the above 3. ______ is a key e-CRM technique to tailor messages according to stated preferences or observed buyer behaviour. a. Retention b. Reactivation c. Referral, recommendation or advocacy d. None of the above 4. In e-CRM, customer retention refers to: a. a communications strategy with existing customers to deliver messages through e- mail, b. delivery of communications offering the next best product (cross-sell and up-sell). c. tailoring of messages in line with customer preferences and behaviours. d. All of the above. 5. In e-CRM, customer acquisition means: 4 2

a. attracting customers in the target profile to your website and encouraging them to opt- in. b. identifying the appropriate customers to target. c. encouraging customers to purchase further products through personalised web and e- mail communications. d. encouraging customers to purchase more expensive products which may also be in other categories. Answers 1-d, 2-d, 3-d. 4-a, 5-d 2.9 REFERENCES KINCAID J. W. (2003) Customer Relationship Management: Getting it Right! 1st Ed. USA: Prentice Hall PTR MCDONALD M. (2012) Market Segmentation: How to do it and How to profit from it? 4th Ed. UK: John Wiley & Sons Ltd WEINSTEIN A. (2004) Handbook of Market Segmentation: Strategic targeting for Business and Technology Firm. 3rd Ed. New York: The Haworth Press 4 3

UNIT - 3PRINCIPLES OF CRM STRUCTURE 3.0 Learning Objectives 3.1 Introduction 3.2 Principles of Customer Relationship 3.3 Relationship Building Strategies 3.4 Summary 3.5 Keywords 3.6 Learning Activity 3.7 Unit End Questions 3.8 References 3.0 LEARNING OBJECTIVES After studying this unit, you will be able to:  Describe nature of Customer Relationship Management  Explain the Principles of Customer Relationship,  Identify scope of Relationship Building Strategies  State the need and importance of CRM 3.1 INTRODUCTION Customer relationship management (CRM) is a strategy that businesses use to manage or maintain interaction with customers. CRM entails practices, principles, strategies and guidelines that a company uses when interacting with both current and potential clients. Good customer relationship management involves an analysis of customers' trends, patterns and behaviors to inform the why a company interacts with customers. The primary goal of CRM is to enhance a good customer experience in such a way that current customers are retained and potential customers are gained. In any Business-to-Consumer (B2C) business, there is one universal ground rule – Customer is king. Customer relationships are what drive a B2C business and dictate its growth. However, sometimes even the biggest companies ignore the customers in favour of short- term benefits. Time and again, this has proved to be their undoing. The hopes of developing a better relationship with the customers have led to the rise of CRM marketing tools. But maintaining a good relationship with your customers goes beyond a simple tool; it is a complete methodology. The principles behind building strong custome4r relationships are as important as ever in today’s hyper-connected economy! 4

Over the past decade, ICMI has studied, codified and periodically published a summary of the most important principles behind building strong, profitable customer relationships. Lately, I’ve been asked, are these principles less important? Have evolving customer expectations, social communities, new channels and other developments changed the fundamentals? 3.2PRINCIPLES OF CUSTOMER RELATIONSHIP These 12 principles are as important as ever, in large part because of the most significant changes that are taking place. Each is both compelling on its own, but as an overall customer relationship strategy, they are best viewed and implemented together – the integrated whole is greater than the sum of these parts. 1. Continuously learn about your customers: From this principle, everything else follows. When you know your customers, you can make sound business decisions about how to develop relationships with them. 2. Interact personally with your customers: Relationships result from interaction. Knowing your customers is just the first step. Use that knowledge to develop your relationships with your customers whenever you interact with them. 3. Handle different customers differently: The power of this principle lies in the potential for optimizing the value of each customer relationship through differential treatment. Segment customers sensibly – effective customer relationship management strategy ultimately seeks to optimize value. 4. Retain the right customers: Customer knowledge and the capability for differentiated customer treatment significantly improve many organizations’ capabilities to retain customers. 5. Anticipate customer needs and offer to fulfill them: Knowledge of your customers presents new opportunities for making the right offer or delivering the right service to the right person at the right time. 6. Increase value for your customers and of your customers: It is precisely because building customer relationships increases value both for customers and the organization that it is such a compelling strategy. When executed properly, the focus on building relationships and brand loyalty is a “win-win” for customers and the organization alike. 7. Present a single face to your customers to make their experiences with your organization seamless: Seek to simplify the experience for your customers. Take a holistic view of your customers and consolidate information from across the organization, regardless of geography, department, function, contact channel, social community, or product line. 8. Focus on revenue and retention more t4han on reducing costs: A renewed focus on building relationships can require so m5any organizationwide process changes that

operational cost savings may well be realized – but keep your eyes on value, overall revenue and retention first. 9. Enable information sharing and interaction across the organization: It is both a requirement and a benefit of customer relationship management that organizations improve their internal communication processes. The only way to develop a comprehensive view of each customer’s relationship with the organization is with the full participation of every part of the organization. 10. Create business rules to drive all customer relationship management decisions and automation: Business rules codify and automate processes, specifying what should happen in specific situations, thus enabling both differentiated customer treatment and automation. 11. Empower agents with information and training: Just as the cockpit of an airplane displays all the information a pilot needs to fly in any conditions, the contact management screen should pull together cleanly and clearly all that the organization knows about its relationship with that customer. Empowerment is a complementary principle because no set of business rules can or should fully anticipate every conceivable situation. 12. Remember that the effective management of customer relationships is a way of doing business, not just a technology project: Technology is an enabler, but as these 12 key principles demonstrate, cultivating customer relationships is much more than high-powered technology. Customer strategy must be the way you do business. You can trust these principles. They have staying power, even (and especially) in today’s fast changing environment. 3.3RELATIONSHIP BUILDING STRATEGIES Successful businesses don't just communicate with prospects and customers for special sales. Today, making your company indispensable is a vital key to marketing success. It's a terrific way to add value, enhance your brand and position against your competition. Here are seven relationship-building strategies that will help you transform your company into a valuable resource: 1. Communicate frequently. How often do you reach out to customers? Do the bulk of your communications focus on product offers and sales? For best results, it's important to communicate frequently and vary the types of messages you send. Instead of a constant barrage of promotions, sprinkle in helpful newsletters or softer-sell messages. The exact frequency you choose will depend on your industry and even seasonality, but for many types of businesses, it's possible to combine e-mail, direct mail, phone contact and face-to-face communication to keep prospects moving through your sales cycle without burning out on your message. 2. Offer customer rewards. Customer loyalty or reward programs work well for many types of businesses, from retail to cruise and travel. T46he most effective programs offer graduated rewards, so the more customers spend, the more they earn. This rewards your best, most

profitable clients or customers and cuts down on low-value price switchers-customers who switch from program to program to get entry-level rewards. Whenever possible, offer in-kind rewards that remind your customers of your company and its products or services. 3. Hold special events. The company-sponsored golf outing is back. With the renewed interest in retaining and up-selling current customers, company-sponsored special events are returning to the forefront. Any event that allows you and your staff to interact with your best customers is a good bet, whether it's a springtime golf outing, a summertime pool party or an early fall barbecue. Just choose the venue most appropriate for your unique customers and business. 4. Build two-way communication. When it comes to customer relations, \"listening\" can be every bit as important as \"telling.\" Use every tool and opportunity to create interaction, including asking for feedback through your Web site and e-newsletters, sending customer surveys (online or offline) and providing online message boards or blogs. Customers who know they're \"heard\" instantly feel a rapport and a relationship with your company. 5. Enhance your customer service. Do you have a dedicated staff or channel for resolving customer problems quickly and effectively? How about online customer assistance? One of the best ways to add value and stand out from the competition is to have superior customer service. Customers often make choices between parity products and services based on the perceived \"customer experience.\" This is what they can expect to receive in the way of support from your company after a sale is closed. Top-flight customer service on all sales will help you build repeat business, create positive word-of-mouth and increase sales from new customers as a result. 6. Launch multicultural programs. It may be time to add a multilingual component to your marketing program. For example, you might offer a Spanish-language translation of your Web site or use ethnic print and broadcast media to reach niche markets. Ethnic audiences will appreciate marketing communications in their own languages. Bilingual customer service will also go a long way toward helping your company build relationships with minority groups. 7. Visit the trenches. For many entrepreneurs, particularly those selling products and services to other businesses, it's important to go beyond standard sales calls and off-the-shelf marketing tools in order to build relationships with top customers or clients. When was the last time you spent hours, or even a full day, with a customer-not your sales staff, but you, the head of your company? There's no better way to really understand the challenges your customers face and the ways you can help meet them than to occasionally get out in the trenches. Try it. You'll find it can be a real eye-opener and a great way to cement lasting relationships. 3.4 SUMMARY  12 principles are as important as ever, in large part because of the most significant changes that are taking place. Each aisreb74obtehstcvoimewpeeldlinagndonimiptsleomwenn,tebduttoagseathneor v–ertahlel customer relationship strategy, they

integrated whole is greater than the sum of these parts. Continuously learn about your customers, Interact personally with your customers, Handle different customers differently,Retain the right customers, Anticipate customer needs and offer to fulfil them, Increase value for your customers and of your customers, Present a single face to your customers to make their experiences with your organization seamless, Focus on revenue and retention more than on reducing costs, Enable information sharing and interaction across the organization, Create business rules to drive all customer relationship management decisions and automation, Empower agents with information and training, Remember that the effective management of customer relationships is a way of doing business, not just a technology project. Successful businesses don't just communicate with prospects and customers for special sales. Today, making your company indispensable is a vital key to marketing success. It's a terrific way to add value, enhance your brand and position against your competition. Here are seven relationship-building strategies that will help you transform your company into a valuable resource: Communicate frequently, Offer customer rewards, Hold special events, Build two- way communication, Enhance your customer service, Launch multicultural programs, Visit the trenches. 3.5 KEYWORDS Relationship Intelligence: Relationship intelligence describes software applications that will “intelligently” search and filter through a company’s (or an individual’s) information and data on past (or likely future) relationships and provide useful insights, trends, connections and recommendations on engaging with the individual or company. Customer Relationship Management (CRM): CRM stands for Customer Relationship Management. In its core, CRM describes the way a company builds and fosters connections (relationships) with potential and existing customers. CRM helps businesses improve their customers’ experience, thereby increasing likelihood of (re-)purchase, customer lifetime value and reducing their own business costs. 3.6 LEARNING ACTIVITY 1. Define relationship building strategies. ___________________________________________________________________________ ___________________________________________________________________________ 2. State the principles of customer relationship ___________________________________________________________________________ ___________________________________________________________________________ 3.7 UNIT END QUESTIONS A. Descriptive Questions 4 Short Questions 8

6. Define CRM? List the principles of customer relationship. 7. Elaborate about the nature of CRM and its relevance in present scenario. 8. Identify the typical need of Customer Relationship Managementin today’s competitive world. Long Questions 3. Critically analyse the evolution and present state of Customer Relationship Management in India 4. Describe the evolution relationship building strategies. 5. Describe the principles of customer relationship. B. Multiple Choice Questions 1. According to ___, CRM is an iterative process that turns customer information into positive customer relations. a. Ronald S. Swift b. Stanley A. Brown c. Chris Todman d. Gartner Group 2. CRM is a business philosophy that aims at maximizing ___ in the long run a. Organization value b. Customer value c. Business value d. Software value 3. Enhance Customer Relationship Management started in ___. a. 1980 b. 1970 c. 1990 d. 1985 4. The objective of data mining is to detect ___ relationships among data a. Vendor 4 b. Customer 9 c. Application d. Hidden

Answers 1-a, 2-b. 3-c, 5-d 3.8 REFERENCES Website DNB (2014) Make your CRM work harder — so you don’t have to [online] Available from http://www.dnb.com/lc/sales-marketing-education/how-to-improve-crm-data- quality.html#.VGobPjSUf-s . [Accessed: 9th Oct 2014] OMETRIA (2014) The Ultimate Customer Segmentation Cheat Sheet [online] Available from https://www.ometria.com/content/ultimate-customer-segmentation . [Accessed: 11th Oct 2014] SCSAGENTS (2014) Personalized Communications Increases Response [online] Available from http://www.gcsagents.com/solutions/multiple-channel-engagement/personalize- communications/ . [Accessed: 15th Oct 2014] 5 0