3. 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”
4. 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”.
5.
6. 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.
7. Customer Relationship
Management (CRM)
Traditional Marketing CRM
Goal: Expand customer base,
increase market share by mass
marketing
Goal: Establish a profitable, long-
term, one-to-one relationship with
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. 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.
9. 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