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Overview of Customer Relationship Management: A Combination of People, Process and Technology: 

Overview of Customer Relationship Management: A Combination of People, Process and Technology by Mrs. Rajpreet Kaur (B.Tech., MBA) Sr. Lecturer Department of Management IITT College of Engineering, Pojewal S.B.S. Nagar, Punjab, India Presented at “ National Conference on Impact of Management and Technological Advancements in Technical Education and Industrial Sectors ” on Feb 18-19, 2011

Contents of Presentation: 

Contents of Presentation Introduction Four Tools of CRM Barnes 4 R’s Ten Domains of Customer Satisfaction Tuckers Five steps to Achieve Customer Delight CRM Applications, Implementation Models and Issues Summary

Introduction: 

Introduction CRM: Of the people, by the people, and for the people CRM, which is combination of marketing and business processes, is basic understanding of customers and how organizations measure them. Mantra behind CRM is catering to customized needs “ centrally ”. CRM represents enterprise approach to Develop detailed knowledge about customer behavior and preferences and Develop programs and strategies that encourage customers to continually enhance their business relationship with company

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“ A view of the customer that asserts that he or she is a valuable asset to be managed .” – S. Thomas Foster Deciding that “you want lifetime clients .” - Richard Buckingham “ The long-term success of the organization and improved value for its shareholders lies to a very great extent in the company’s ability to develop and sustain genuine relationships with its customer .” - James G. Barnes Definitions

Classification of Customers : 

Classification of Customers Three zones of customers Zone of defection where customers are extremely hostile and have the lowest level of satisfaction. Zone of indifference where customers are not sure. They have a medium level of satisfaction and loyalty towards the company. Zone of affection described as " Apostles ". CRM focuses on bringing customers from level 1  level 3 and retaining apostle customers.

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CRM Reduces : Cost to acquire customers Cost to sell Cost to Serve CRM Enhances : Customer Satisfaction Quality, Efficiency and Productivity Return on Relationships Competitive advantage Number of Consumers Retention Rate Revenue per customer Market share growth Benefits of CRM

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Internal Markets Supplier Markets Referral Markets RELATIONSHIP MARKETING Recruitment Markets Customer Markets Influence Markets Six Markets Model

Four Tools of CRM: 

Four Tools of CRM Complaint Resolution Feedback Guarantees Corrective Action

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Complaint Resolution Three types of complaints: Regulatory, Employee, Customer Compensation Contrition Ease of Resolution Four Tools of CRM (Contd…)

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Feedback Customer Data Customer Behavior Data-gathering Analyzing Data Four Tools of CRM (Contd…)

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Guarantees Customer Rights Guarantee Design: Unconditional Meaningful Communicable Painless to invoke Four Tools of CRM (Contd…) Corrective Action The way a firm reacts to a problem so that the problem never reoccurs.

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Barnes 4 R’s Customer Retention Customer Relationships Customer Referrals Recovery

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Barnes 4 R’s (Contd…) Customer Retention A low-cost way to increase revenue. Retention is cheaper than acquisition. Must be voluntary. Must lead to long-term relationships.

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Barnes 4 R’s (Contd…) Customer Relationship Attempting to know the customer. Commitment and Communication “ Clients should call you only once. After that, you should proactively call them .” –Richard Buckingham

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Barnes 4 R’s (Contd…) Customer Referrals Powerful tool that results from customer satisfaction or dissatisfaction. “ Referral clients are already sold, before they even call you .” –Richard Buckingham Recovery Empower employees so that they may deal with mistakes as they occur.

Technology: 

Technology Internet communication as a means of enhancing customer relationships. Ease of use of the technology important. Brainstorm A customer enters a restaurant and receives bad service, bad food, and overall dissatisfaction. Use Foster’s tools or Barnes’ 4 R’s to resolve the problem.

Ten Domains of Customer Satisfaction: 

Ten Domains of Customer Satisfaction Quality Value Timeliness Environment Ease of Access Efficiency Self-Management (front line service behaviors) Teamwork Commitment Innovation

Tucker’s Five Steps to Achieve Customer Delight: 

Tucker’s Five Steps to Achieve Customer Delight Tucker recommended following five steps that organizations can use to pursue customer delight: Focus Quantify Prioritize actions based on benchmarks Define the business case upfront Monitor and make course corrections

CRM Applications: 

CRM Applications Adopted from Chen and Popovich (2003)

CRM Implementation Model: : 

CRM Implementation Model:

CRM Implementation Issues: : 

CRM Implementation Issues: Implementations almost invariably fall short when one or more facets of this prescription are ignored: Poor planning : Poor integration Toward a solution

Summary: 

Summary Customer-Relationship Management is not easily defined. Long-term relationships must be established which are based on trust and communication. Each firm must decide on its own policy regarding customer relationship, however, the entire organization must be involved in the process. Future of CRM is e-relationship management (eRM) that will synchronize cross-channel relationships

THANK YOU FOR YOUR KIND ATTENTION !!!: 

THANK YOU FOR YOUR KIND ATTENTION !!!