crm

Customer Relationship Management

What is Customer Relationship Management (CRM)? CRM is “the development and maintenance of mutually beneficial long-term relationships with strategically significant customers” (Buttle, 2000)

CRM is “an IT enhanced value process, which identifies, develops, integrates and focuses the various competencies of the firm to the ‘voice’ of the customer in order to deliver long-term superior customer value, at a profit to well identified existing and potential customers”. (Plakoyiannaki and Tzokas, 2001)

Understanding Customer Relationship Management (CRM)?

CRM is a business philosophy based on upon individual customers and customised products and services supported by open lines of communication and feedback from the participating firms that mutually benefit both buying and selling organisations. The buying and selling firms enter into a “learning relationship”, with the customer being willing to collaborate with the seller and grow as a loyal customer. In return,, the seller works to maximize the value of the relationship for the customer’s benefit. In short, CRM provides selling organisations with the platform to obtain a competitive advantage by embracing customer needs and building value-driven long-term relationships.

Determinants of CRM Trust The willingness to rely on the ability, integrity, and motivation of one company to serve the needs of the other company as agreed upon implicitly and explicitly.

Value

The ability of a selling organisation to satisfy the needs of the customer at a comparatively lower cost or higher benefit than that offered by competitors and measured in monetary, temporal, functional and psychological terms.

Determinants of CRM In addition to trust and value, salespeople must:

Understand customer needs and problems; Meet their commitments; Provide superior after sales support; Make sure that the customer is always told the truth (must be honest); and Have a passionate interest in establishing and retaining a longterm relationship (e.g., have long-term perspective).

Stages in the development of a Customer Relationship The Pre-relationship Stage The event that triggers a buyer to seek a new business partner. The Early Stage Experience is accumulated between the buyer and seller although a great degree of uncertainty and distance exists. The Development Stage Increased levels of transactions lead to a higher degree of commitment and the distance is reduced to a social exchange. The Long-term Stage Characterised by the companies’ mutual importance to each other. The Final Stage The interaction between the companies becomes institutionalized.

Functions of Customer Relationship Management Direct functions (are the basic requirements of a company that are necessary to survive in the competitive marketplace) Profit; Volume; and Safeguard Indirect functions (are the actions necessary to convince the customer to participate in various marketing activities). Innovation: Market; Scout: and Access.

The role of salespeople as relationship builders and promoters Salespeople by: identifying potential customers and their needs; approaching key decision makers in the buying firm; negotiating and advancing dialogue and mutual trust; coordinating the cooperation between the customers and their company; encouraging the inter-organisational learning process; contributing to constructive resolution of existing conflicts; and leading the customer relationship development team

are the individuals in any organisation who act both as relationship builders and as relationship promoters.

Managing Customer Relationships The global salesperson must be involved in the following activities in order to initiate, develop and enhance the process that is aimed at building trust and commitment with the customer. Initiating the relationship Engage in strategic prospecting and qualifying; Gather and study pre-call information; Identify buying influences; Plan the initial sales call; Demonstrate an understanding of the customer’s needs; Identify opportunities to build a relationship; and

Illustrate the value of a relationship with the customer

Managing Customer Relationships The global salesperson must be involved in the following activities in order to initiate, develop and enhance the process that is aimed at building trust and commitment with the customer. Developing the relationship Select an appropriate offering; Customise the relationship; Link the solutions with the customer’s needs; Discuss customer concerns; Summarize the solution to confirm benefits; and Secure commitment.

Managing Customer Relationships The global salesperson must be involved in the following activities in order to initiate, develop and enhance the process that is aimed at building trust and commitment with the customer. Enhancing the relationship Assess customer satisfaction; Take action to ensure satisfaction; Maintain open, two-way communication; and Work to add value and enhance mutual opportunities.

3 Important Points • The Most Important Goal is – CREATE & KEEP THE CUSTOMER • Not To sell – Help Them To buy • People love to buy – Hate to be sold

Better Then a Selling • Selling – Money Making • Understand customer – NEED • Helping the customer is our top priority – In tennis if u serve better u can win

The greatest customer ever You win!! • Use your emotions – Knowledge is of second priority • People Are More governed by customer - & emotions are contiguous

Why customer Buy? • Good feeling • Solution to problem; Problem = What You want – What You Have • Focus on Finding Effective Solutions rather than on problems; Solution = Problem + What is required

The right touch • Act the way you feel & you will feel the way you act!! • Never tell customers your problems • Don’t ask “How are you” instead, say “Nice to meet you” • Remember… They buy for their reason and NOT for ours

The right touch • Should ensure that customer get the values of money • Use problem solving approach –Pay attention to the customer then the goods • Have a good body language • Good dressing • Good communication

They will buy much more when they buy you • Point to boost customer image – open emotional account with Your customer • Recognize & praise people – Hair dye & looking young • Use humor- then people laugh they listen More • Let them know what you are thinking about you.

The customer perception • Keys to changing customer perception  Develop customer profile  Look at your business with customer perspective  Be aware of over promising (Avoid if not necessary)  Do not cheat your customer - Just to sell the Product  Your Image – Representing Your company  Problem – great opportunity to win a customer

Use of survey • Result of the survey - Best marketing tool • Keep asking - keep Improvising • Make an effective study to avoid problems.

• BE RELIABLE- consistent performance is what customer wants from us • BE CREDIBLE- if the customer buys the product, he wants to safe and guaranteed. • BE ATTRACTIVE- body language, personality, appearance • BE RESPONSIVE– accessible, available and willing to help customer whenever the customer has a problem. • BE EMPATHIC- to be in customer’s shoes and grasp his point of view

Relationship Marketing Relationship marketing is a strategy designed to foster customer loyalty, interaction and long-term engagement.

Relationship marketing is designed to develop strong connections with customers by providing them with information directly suited to their needs and interests and by promoting open communication..

The RM approach has a great significant from organizations point of View due to the following Reduction in Customer recruitment cost,

Generation of more & more loyal customers, Expansion of customer base, Reduction in advertisement & other sales promotion expenses, Benefiting customer selectivity approach, Increase in the number of profitable customers,

Easy introduction of new products, Easy business expansion possibilities, Increase in customer partnering, etc

The customers are also benefitted by relationship marketing in terms of improved

Service quality, Personalized care, Reduction of customer stress, Increased value for money, Customer empowerment, etc.

Why organizations lose their customers

Price Related Reasons

Product Related Reasons

Service Related Reasons

Benefit Related Reasons

Competitor Related Reasons

Personal Reasons