2. WHAT IS CRM
“CRM is concerned with the creation,
development and enhancement of individualised
customer relationships with carefully targeted
customers and customer groups resulting in
maximizing their total customer life-time value”
3. ORIGIN OF CRM
Customer relationship management was
originated in early 1970s
CRM came as a process that dealt with
relationships with customers surpassing the
whole business
As said by Father of management “The true
business of every company is to make and keep
customers”.
4.
5. THE PURPOSE OF CRM
The focus [of CRM] is on creating value for the customer
and the company over the longer term.
When customers value the customer service that they
receive from suppliers, they are less likely to look to
alternative suppliers for their needs .
CRM enables organisations to gain competitive advantage
over competitors that supply similar products or services.
6. CRM BUSINESS CYCLE
Acquire &
Retain
Understand
Interact & CR &
Differentiat
Deliver
M e
Develop &
Customize
7. MANAGING EFFECTIVE CUSTOMER RELATION
PROCESS .
Custome
r
Retentio
n
Cross & Segmentati
on & Need
Up Sell Analysis
Custome Campaign
Manageme
r service nt
Lead
Manageme
nt
8. CUSTOMER RELATIONSHIP
MANAGEMENT (CRM)
Traditional Marketing CRM
Goal: Expand customer base, Goal: Establish a profitable, long-
increase market share by mass term, one-to-one relationship with
marketing customers; understanding their
needs, preferences, expectations
Product oriented view Customer oriented view
Mass marketing / mass production Mass customization, one-to-one
marketing
Standardization of customer needs Customer-supplier relationship
Transactional relationship Relational approach
8
9. CHALLENGES IN CRM
Richness of customer data.
Integrated view of customer information.
Feedback mechanism from customer.
Intelligence at operational touch points.
Consistence of communication.
Convenience of interacting with insurer.
10. BENEFITS OF CRM
Reduced costs, because the right things are being done (ie.,
effective and efficient operation)
Increased customer satisfaction, because they are getting exactly
what they want (ie. meeting and exceeding expectations)
Ensuring that the focus of the organisation is external
Growth in numbers of customers .
Maximisation of opportunities (eg. increased services, referrals,
etc.)
Increased access to a source of market and competitor information
Highlighting poor operational processes
Long term profitability and sustainability
