Customer Relationship Management (CRM)

1. Customer Relationship Management
•Customer Relationship Management (CRM) is a business strategy to
select and manage customers to optimize long-term value.
•Customer Relationship Management is a comprehensive strategy and
process of acquiring, retaining and partnering with selective
customers to create superior value for the company and the customer.
•CRM requires a customer-centric business philosophy and culture to
support effective marketing, sales, and service processes. CRM
applications can enable effective Customer Relationship
Management, provided that an enterprise has the right leadership,
strategy, and culture.

2. ‘CRM’ Process
CRM refers to a process used by an organization to learn more about
its consumers and to improve marketing productivity.
The goal of any business is to derive maximum profitability from its
customer base. The CRM value chain describes the process that a
business must have in place to gain the profitability wanted from
customers. Five key steps are necessary for the successful
implementation of a CRM strategy, and are commonly referred to as

3. 1. Customer portfolio analysis
This first step involves analysis of your organization's customer
base to determine what groups and kinds of customers are the most
profitable. This will define your organization's target customer
base.
‘CRM’ Process Cont…

4. 2. Customer intimacy
Customer intimacy is the process of getting familiar with the
individual customers within the organization's target customer base.
Relationship building is predicated upon how well you know your
customer and that includes everything from buying habits to when
their birthday is. Every interaction with a customer is an
opportunity to improve customer intimacy and learn more about
your target market. This step usually includes building a customer
database to store the gathered information.
‘CRM’ Process Cont…

5. 3.Network development
Network development refers to the identification and development
of strong relationships with organizations, networks and people that
are critical to your success in servicing your customers. These
relationships will include external partners such as suppliers and
investors, as well as internal partners, your employees.
‘CRM’ Process Cont…

6. 4.Value proposition development
This step builds on the information gathered while working on
customer intimacy. Once you have identified your target customer,
you can move forward and create a tailored value proposition for
this customer. In creating value for your customer, your value
proposition must also create value for your organization.
‘CRM’ Process Cont…

7. 5.Customer life cycle management
The customer life cycle refers to the ideal customer journey: from
potential client to product/service advocate. It also relates the
continuing relationship you maintain with your customer.
Managing this cycle requires structure and attention to process.
Your organization must determine how it will organize itself to
effectively manage customer relationships (structure). As well,
thought must be given to determining how your organization will
approach customer acquisition and retention, as well as the
performance measurement of your CRM strategy (process).
‘CRM’ Process Cont…

8. IMPORTANCE OF CRM
•CRM is the transformation of people, process and technology
required to become a customer-centric organization.
•CRM is not just software that allows for the recording of customer
interactions, accurate histories to be kept, and knowledge to be
shared across departments within a company.
•CRM is not a product. It is not even a suite of products.CRM is a
business philosophy that touches upon many independent parts of
the organization, CRM addresses the Sales, Marketing, and Service
activities of the organization.

9. •CRM must be part of an overall company philosophy.
•CRM is core to all businesses; essentially it is about selling good
products or services to the right people.
•CRM solutions must include not just systems, but also people,
process and strategy.
•CRM must focus on selecting and managing customer value and
loyalty through a long-term relationship.
•CRM is not a single system but a comprehensive application
architecture consisting of several systems.
IMPORTANCE OF CRM Cont…

10. THANK YOU