This document discusses customer relationship management (CRM) and its importance for businesses. CRM involves integrating online and offline marketing communications with social media to nurture customer relationships. It is a set of processes linked to a database that helps organizations maintain contact with customers to address requests, complaints, and purchases. CRM can boost sales and profits when done effectively by building enduring relationships through excellent service rather than just low prices. It requires strategic planning and long-term commitment of resources to customer profiling, data analytics, personalized communications, and developing trust and credibility with customers.

1. CRM
Marketing communication integrating
online & offline with social media
By MUSTAHID ALI
Universal business School, Karjat
MBA2

2. CEM
CMR.
Customer
Experience
Management
Customer Managed Relationships

3. There is a direct overlap between nurturing
a brand and nurturing customer relationships
.CRM is a set of processes, usually linked to a
database, that help an organization keep in
contact with customers and deal with their
requests, complaints, suggestions and
purchases.
Customer relationships are the only
thing that cannot be replicated by a
competitor

4. Relationships built on price simply don’t
last. Relationships built on relevant
excellent service are more enduring.

5. Company benefits
Boost sales
Strengthen the brand
Boost profits
Create a database asset

6. Resources required
CRM is a strategic decision and has a long-term
impact on how a business is run.

7. CRM failure
‘80% of companies believe they deliver a superior
customer experience, but only 8% of their
customers agree.’
Allen, Reichheld and Hamilton (2005)

8. Why
Ignore customer e-mails
38% of major UK companies ignore coming
customer e-mails
Retailers had the best track record, responding to
mails
Telecoms had the worst –
58 %
of e-mails were simply ignored
70% of e-

9. Fail to get to know customers. 50%
of the FTSE 1000 did not know who
their
customers were.
Even when they had the raw data collected and safely
stored, they still
could not profile their own customers
Fail to satisfy customers. Of all calls to Fujitsu call centers, 50–70 % were for
value restoration (fixing a problem, e.g. late
delivery, wrong delivery or poor product
quality) rather than value creation, e.g. adding
value with helpful advice over the phone

10. How CRM will success
CRM components
required
Database management;
Credibility factors
Processes
CRM architecture (both IT and
human);
profiling

11. Software applications
likely to be needed for CRM/CEM include:
knowledge management
content and collaboration, e.g. instant
enterprise process management;
●● portals and self-service;
messaging, community support on websites;
business information and analysis;
experience feedback;
applications that turn call centers into
interactive contact center's.

12. Human architecture

13. Database
Historical
data and Predictive data
Historical data (‘transactional
data’ or ‘back data’) include name, address,
recency and frequency of purchases, responses
to offers and value of purchases
Predictive data identify
which groups or subgroups are more likely
to respond to a specific offer

14. Data analytics

15. Profiling
Valuable profiles combine
both implicit and explicit data continually. This
provides a real picture (or profile) of the target
markets,
the characteristics that define each segment and
how to serve each segment

16. Personalization and
tailored offers
The most important sound in the world is . . . your
own name! It’s personal
Credibility and trust
Develop credibility before raising visibility

17. So how do you develop
credibility
and trust on a website?
Firstly, ensure that your product or
service has sufficient quality to match
the promises made in advertising and
other communications

18. Key points
Relationship marketing (and CRM) can
create competitive advantage.
CRM is all about long-term brand building vs.
short-term sales growth.
There is a disciplined approach to the
CRM planning process
CRM requires resources and a disciplined set of
processes.