Customer Relationship Management
2ES – P150 – SCM (Version 1.0)Primer 1•Shift 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 estate•Shift 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
3ES – P150 – SCM (Version 1.0)Primer 2•CRM 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 customers•CRM is a business philosophy based on Trust and Value•Trust and Commitment are core attributes of a high quality relationship•Other attributes include satisfaction, mutual goals and cooperative norms•The core function of CRM is the value creation process to offer superior value to customers•The basic premise of CRM is on the effort to turn:Suspects -> Prospects -> Customers -> Loyal Customers-> Partners/Advocates
4ES – P150 – SCM (Version 1.0)UNIT 1Concepts and Context of CRM & Understanding Customers
5ES – P150 – SCM (Version 1.0)Introduction•CRM – “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 technology•Why organizations need CRM:–Increase customer service levels–Develop loyalty programs and retain customers–Improve efficiency of customer contact centers–Cross-sell or Up-sell products effectively–Help sales staff close deals quickly–Increase share of wallet
6ES – P150 – SCM (Version 1.0)Key Application Clusters
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
You've reached the end of your free preview.
Want to read all 48 pages?
- Fall '16