• This Module discuss the topic related to Type of CRM, The Strategic Framework for CRM, Strategic CRM, Analytical CRM, Analytical CRM answers these questions, Successful analytical CRM solution, Benefits of Analytical CRM, Case on Analytical CRM, Collaborative CRM, Case on Collaborative CRM, Social CRM, Types of Social Media, Understanding Social CRM, Difference Between Traditional and Social CRM, Benefits of SCRM, Risk Associated with SCRM, Steps towards effective SCRM, Critical Success Factors for SCRM.

1. Types of CRM
Prepared By
Jitendra Patel
Assistant Professor
Prestige Institute of
Management and Research,
Indore.
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Jitendra Patel, Assistant Professor, PIMR,
Indore

2. Module III
• Type of CRM
• The Strategic Framework for CRM
• Strategic CRM
• Analytical CRM
• Analytical CRM answers these questions
• Successful analytical CRM solution
• Benefits of Analytical CRM
• Case on Analytical CRM
• Collaborative CRM
• Case on Collaborative CRM
• Social CRM
• Types of Social Media
• Understanding Social CRM
• Difference Between Traditional and Social CRM
• Benefits of SCRM,
• Risk Associated with SCRM
• Steps towards effective SCRM
• Critical Success Factors for SCRM12/26/2020 2
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Indore

3. Type of CRM
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4. The strategic framework for CRM
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5. Strategic CRM
• Strategic CRM is focused upon the development of a customer-
centric business culture.
• This culture is dedicated to winning and keeping customers by
creating and delivering value better than competitors.
• In a customer-centric culture you would expect resources to be
allocated where they would best enhance customer value, reward
systems to promote employee behaviours that enhance customer
satisfaction and retention, and customer information to be
collected, shared and applied across the business.
• A customer or market-oriented company shares a set of beliefs
about putting the customer first.
• It collects, disseminates and uses customer and competitive
information to develop better value propositions for customers.
• A customer-centric firm is a learning firm that constantly adapts to
customer requirements and competitive conditions.
• There is evidence that customer-centricity correlates strongly with
business performance
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Jitendra Patel, Assistant Professor, PIMR,
Indore

6. Analytical CRM
• Analytical CRM is concerned with capturing,
storing, extracting, integrating, processing,
interpreting, distributing, using and reporting
customer-related data to enhance both customer
and company value.
• Analytical CRM builds on the foundation of
customer-related information.
• Customer-related data may be found in
enterprise-wide repositories: sales data
(purchase history), financial data (payment
history, credit score), marketing data (campaign
response, loyalty scheme data) and service data.
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Jitendra Patel, Assistant Professor, PIMR,
Indore

7. • To these internal data can be added data from
external sources: geo-demographic and lifestyle
data from business intelligence.
• organizations, for example. With the application
of data mining tools, a company can then
interrogate these data.
• Analytical CRM has become an essential part of
many CRM implementations. Operational CRM
struggles to reach full effectiveness without
analytical information about customers.
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Jitendra Patel, Assistant Professor, PIMR,
Indore

8. Analytical CRM answers these
questions
1. Who are our most valuable customers?
2. Which customers have the highest propensity to
switch to competitors?
3. Which customers would be most likely to
respond to a particular offer?
4. Which customers shall we target with this offer?
5. What is the relative priority of customers
waiting on the line, and what level of service
should be offered?
6. Where should I focus my sales effort?
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Jitendra Patel, Assistant Professor, PIMR,
Indore

9. Analytical CRM
• Analytical CRM can lead companies to decide that
selling approaches should differ between
customer groups.
• Higher potential value customers may be offered
face-to-face selling;
• lower value customers may be contacted by
telesales.
• Furthermore, the content and style of customer
communications can be tailored, perhaps for a
particular segment, using customer analytics.
• This enhances the probability that a given offer
will be accepted by the customer
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Jitendra Patel, Assistant Professor, PIMR,
Indore

10. Analytical CRM
• From the customer’s point of view, analytical
CRM can deliver timely, customized, solutions
to the customer’s problems, thereby
enhancing customer satisfaction.
• From the company’s point of view, analytical
CRM offers the prospect of more powerful
cross-selling and up-selling programmes, and
more effective customer retention and
customer acquisition programmes.
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Jitendra Patel, Assistant Professor, PIMR,
Indore

11. Analytical CRM
• Widening the relationship with customers by
acquiring new and profitable customers.
• Lengthening the relationship with customers by
targeting existing resources and strengthening
the foundation of those relationships.
• -Deepening the relationship with customers by
transforming minor customers into highly
profitable ones. An additional step is increasing
the share of sales revenue (and hence the share
of wallet), or recognizing cross-selling or up-
selling opportunities with current customers and
making the right offers.
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Jitendra Patel, Assistant Professor, PIMR,
Indore

12. Analytical CRM
To widen the customer relationships, the firm should consider
the factors like :
• the kind of customers to be acquired
• the kind of customers who will drive the growth in future
and
• the type of new customers, who are likely to be interested
in the firm‘s products.
To lengthen the customer relationships, a firm needs to
answer following questions:
• Which customers in particular it want to keep?
• Which customers will drive most of the profits?
• Which customers might switch to the competitors and
why?
• Which customers are dissatisfied with the services and
products of the firm?
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Jitendra Patel, Assistant Professor, PIMR,
Indore

13. Successful analytical CRM solution:
• Capturing all relevant customer information from
different sources, channels, and touch-points and
then integrating it into a customer knowledge
base with a 360° view.
• Applying a comprehensive set of analytical
methods to measure and optimize customer
relationships and answering all relevant business
questions.
• Deploying analytical results to improve the CRM
processes, interactions with customers, and
business planning with customers.
• Integrating customer value with shareholder
value and strategic enterprise management.12/26/2020 13
Jitendra Patel, Assistant Professor, PIMR,
Indore

14. Benefits of Analytical CRM
• Acquire new profitable customers.
• Improve the firm‘s relationships with
existing customers by addressing
their individual needs.
• Optimize cross-selling and up-selling
opportunities.
• Improve customer loyalty and reduce
customers' propensity to churn.12/26/2020 14
Jitendra Patel, Assistant Professor, PIMR,
Indore

15. Benefits of Analytical CRM
• Aim the firm‘s resources at high-value customers
and build more profitable customer relationships
by:
• Targeting the investments in marketing, sales,
and service.
• Directing firm‘s attention and services more
effectively toward such customers.
• Forcing internal efficiencies and process
improvements.
• Automate and personalize customer interactions
based on sound customer knowledge.
• Integrate the firm‘s overall strategies with its
strategies in marketing, sales and service.
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Indore

16. Case on Analytical CRM
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Jitendra Patel, Assistant Professor, PIMR,
Indore

17. Collaborative CRM
• Collaborative CRM is the term used to describe
the strategic and tactical alignment of normally
separate enterprises in the supply chain for the
more profitable identification, attraction,
retention and development of customers.
For example,
• manufacturers of consumer goods and retailers
can align their people, processes and
technologies to serve shoppers more efficiently
and effectively. They employ practices such as co-
marketing, category management, collaborative
forecasting, joint new product development and
joint market research.
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Jitendra Patel, Assistant Professor, PIMR,
Indore

18. Collaborative CRM
• Collaborative CRM uses CRM technologies to communicate
and transact across organizational boundaries.
• The term is usually applied to more recent technologies such
as electronic data interchange (EDI),portals, e-business, voice
over internet protocol (VoIP), conferencing, chat rooms, web
forums and e-mail.
• These technologies allow data and voice communication
between companies and their business partners or customers.
• Collaborative CRM enables separate organizations to align
their efforts to service customers more effectively. It allows
valuable information to be shared along the supply chain
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Jitendra Patel, Assistant Professor, PIMR,
Indore

19. Collaborative CRM
• Some CRM technology vendors have developed
partner relationship management (PRM)
applications that enable companies to manage
complex partner or channel ecosystems and
reduce the costs of partner or channel
management.
• PRM applications are often used to manage
partner promotions. A manufacturer of consumer
goods might have a dozen or more different
cooperative advertising programmes running
simultaneously.
• PRM allows companies to manage the
distribution of funds, plan and control
promotions and measure outcomes
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Jitendra Patel, Assistant Professor, PIMR,
Indore

20. • Collaborative filtering : Collaborative filtering
is the method of making automatic
predictions (filtering) about the interests of a
user by collecting taste information from
many users (collaborating).
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Indore

21. Case on Collaborative CRM
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Indore

22. Social CRM
• Social CRM unites social media technology
with customer relationship management.
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Jitendra Patel, Assistant Professor, PIMR,
Indore

23. Types of Social Media
• Social Networks : These sites allow people to
build personal web pages and then connect with
friends to share content and communication.
• Blogs: Blogs are online Journals with entries
appearing with the most recent first. It is widely
and most commonly used social media tool by
organization to communicate and share relevant
information with customers.
• Wikis : These websites allows people to add
content to or edit the information on them, act
as communal document or database. The best-
known wiki is Wikipedia.
• Podcasts : Audio and Video files that are
available by subscription through services.12/26/2020 23
Jitendra Patel, Assistant Professor, PIMR,
Indore

24. Types of Social Media
• Forums : These are areas for online discussion,
often around specific topics and interests. They
are powerful and popular element of online
communication.
• Content communities: These communities
organize and share particular kind of content. Eg
are Flickr, Tublr and Youtube.
• Micro-blogging: Social networking combined
with bite-sized blogging, where small amounts of
content (‘updates’) are distributed online and
through the mobile phone network. Twitter is
leader in Micro-blogging and most commonly
used Micro-blogging site.
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Jitendra Patel, Assistant Professor, PIMR,
Indore

25. Understanding Social CRM
• The way in which people communicate with
each other and with their favorite brands has
changed.
• Communication is more immediate, public
and distributed.
• Companies focus on improving and managing
the social customer experience, they need to
incorporate and involve their customer to co-
create social interactions with their CRM
strategies and processes.
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Jitendra Patel, Assistant Professor, PIMR,
Indore

26. Understanding Social CRM
• The overall objectives of social CRM is to get
closer to the customers and provide a better
social customer experience.
• Companies seeking to build new social CRM
capabilities must adapt, augment and rethink
their product, channel and customer strategies
as well as their people skills.
• The key to successful social CRM effort lies in
extending traditional CRM Strategies and
Processes to company’s entire extended social
network.
• The overall purpose of social CRM is to drive
customer value.
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Jitendra Patel, Assistant Professor, PIMR,
Indore

27. Difference Between Traditional and Social CRM.
Traditional CRM.
• Traditional CRM was
primarily leveraging on
customer information and
managing the customer.
• The traditional CRM helps
manage customer
relationships on large scale.
Social CRM
• Social CRM is concerned
with engaging the customer
rather than managing them.
• Social CRM helps in making
one to one conversation
with customers with tools
like Face book and Twitter
which was not possible in
traditional CRM.
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Jitendra Patel, Assistant Professor, PIMR,
Indore

28. Difference Between Traditional and Social CRM.
Traditional CRM.
• Traditional CRM is
fundamental to driving
business performance.
• The knowledge that has
been gained on customer
behavior and attitudes will
help drive benefits through
the value chain.
Social CRM
• The Social CRM deals in
timely and relevant manner
that can deliver financial
benefits to the companies.
• The Social CRM benefits lies
in customer lifecycle,
acquisition, value
development and
managing cost.
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Indore
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29. Difference Between Traditional and Social CRM.
Traditional CRM.
• Traditional CRM about
traditional customer loyalty
program and customer
relationship management .
• The traditional CRM deals
with offline management of
customer and data
capturing.
Social CRM
• The Social CRM helps in
capturing the experiences
of the customers.
• The Social CRM helps in
building trust and
relationship with customer
by personally interacting
with millions of customer
across the globe.
•
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Indore
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30. Benefits of SCRM
1. Affordable: Most of the social media sites
like Facebook, twitter, blogs, wikies are free
thus their efforts are much cheaper than
traditional media.
2. Targeted efforts by company: Another
benefit would be that an organization can
divert their marketing efforts towards
specific targeted segment, broaden the reach
to individual customers and offer them
customized services/products.
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Indore
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31. Benefits of SCRM
3. Help in shortening the sales cycle: Once the
prospects have been identified, it helps in
connecting with them directly. Thus avoiding
various issues related to time zone,
geographical barriers and schedule.
4. Increased trust and loyalty: The continuous
communication on social media helps in
gaining trust and loyalty of the customers.
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Indore
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32. Benefits of SCRM
• Information Processing: the social media
helps in giving various types of information to
the customer for him/her to analyze and take
decisions.
• Open Feedback Mechanism: The company
receives open feedback from the customers
which helps them in improving their products
and services.
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Indore
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33. Risk Associated with SCRM
• Social media is very unpredictable
• It allows both customers and critics to comment at
times.
• The customers and prospect can be the part of
negative comments and complaints.
• The customer wants their problems to resolve earliest
• The reliability of social media metrics is also
questionable.
• The information shared on would leak to the
competitor.
• It is difficult to justify the investment for social media.
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Indore
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34. Steps towards effective SCRM
1. Aligning objectives.
2. Innovative Technology
3. Integrate SCRM with Contact Centre
4. A 360-degree view
5. Insight Analysis.
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Indore
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35. Critical Success Factors for SCRM.
• Find your customers
• Learn the language
• Listen
• Engage
• Make use of what you learn.
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36. Reference
• Alok Kumar, Chhabi Sinha and Rakesh Sharma ‘Customer Relationship
Management Concept & Application’ Biztanra, New Delhi. 2018.
• Antony Lawerence, Customer Relationship Management, Himalaya Publishing
House, 2010.
• Boone and Kurtz , Contemporary Marketing, 16th edition, Cengage Learning, 2014
• Buttle, F. “Relationship Management Concepts and Technologies” Second edition,
Elsevier, Burlington, MA Great Britain (2009)
• Mallika Srivastava ‘Customer Relationship Management ‘ Vikas Publication
,Noida UP India .2016.
• Payne, A. “HANDBOOK OF CRM: Achieving Excellence in Customer Management”
Elsevier, Burlington, MA Great Britain (2005)
• Philip Kotler and Gary Armstrong “Principles of Marketing”, New Delhi, Prentice
Hall of India, 15th Edition, 2013.
• Philip Kotler, Kelvin Lane, Keller, Abraham Koshi, Mitihlesh Jha, Principles of
Marketing Management, South Asian Perspective, Pearson Education, 14th Edition
2011.
• Shainesh,G Sneth and Jagdish N, Customer Relationship Management, MacMillan
India Ltd,2005
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