Customer Relationship Management UNIT 1.pdf - Customer Relationship Management Primer 1 Shift away from Production-oriented Transaction Marketing This

Customer Relationship Management UNIT 1.pdf - Customer...

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Customer Relationship Management
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2ES – P150 – SCM (Version 1.0)Primer 1Shift away from Production-oriented Transaction Marketing-“This is what I make, won’t you please buy it?”-Emphasis on individual sales and transactions-Limited communication-No ongoing relationship-Now limited to some markets such as real estateShift towards Relationship Marketing-“This is what I need, cant you please make it”-Views customers as equal partners in transactions-Encourages long-term relationships, repeat purchases, and multiple brand purchases from the firm-Leads to increased sales and low marketing costs-Ranks customer service as a high priority-Encourages frequent customer contact-Fosters customer commitment with the firm
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3ES – P150 – SCM (Version 1.0)Primer 2CRM is a culmination of strategy, process, philosophy and capability in the context of relationship marketing, software enablement, contact centre, post sales support and more with an aim to build profitable, personalized and satisfied relationship with customersCRM is a business philosophy based on Trust and ValueTrust and Commitment are core attributes of a high quality relationshipOther attributes include satisfaction, mutual goals and cooperative normsThe core function of CRM is the value creation process to offer superior value to customersThe basic premise of CRM is on the effort to turn:Suspects -> Prospects -> Customers -> Loyal Customers-> Partners/Advocates
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4ES – P150 – SCM (Version 1.0)UNIT 1Concepts and Context of CRM & Understanding Customers
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5ES – P150 – SCM (Version 1.0)IntroductionCRM – “A strategy used to learn more about customers’ needs and behaviors in order to develop stronger relationships with them”CRM – “An initiative designed to help an organization optimize interactions with customers or prospects via one or more touch points – such as a call center, salesperson, distributor, store, branch office, Web, or e-mail – for the purpose of acquiring, retaining, or cross-selling.”CRM – “A business strategy that optimizes profitability, revenue and customer satisfaction by focusing on highly defined and precise customer groups”A foundation for “1to1 personalized Selling and Marketing” leveraging technologyWhy organizations need CRM:Increase customer service levelsDevelop loyalty programs and retain customersImprove efficiency of customer contact centersCross-sell or Up-sell products effectivelyHelp sales staff close deals quicklyIncrease share of wallet
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6ES – P150 – SCM (Version 1.0)Key Application Clusters
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7ES – P150 – SCM (Version 1.0)Shift in PhilosophyTHE OLDTHE NEWMaximizing market share & revenue was the objectiveMaximizing customer value is the primary objectiveQuality standards were determined internallyQuality standards are determined by customerProduct & service were separate entitiesProducts are developed with integrated services
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