Overview of CRM

Overview of CRM : 

Overview of CRM Dr. Elijah Ezendu FIMC, FCIM, FIIAN, FBDI, FAAFM, FCCM, MIMIS, MITD, ACIArb, ACIPM, PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CMC

Learning Objectives : 

Learning Objectives At the end of the course, participants should be able to do the following: Explain the concepts of CRM Explain the concepts of eCRM Identify the difference between CRM and Traditional Marketing Identify the difference between CRM and Database Marketing Identify the relationship between CRM and eCRM

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“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.” - Parvatiyar and Sheth

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“Customer relationship management is about attracting, developing, maintaining and retaining profitable customers over a period of time.” - Massey, Montoya-Weiss & Holcom

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“CRM relates to strategy, managing the dual-creation or value, the intelligent use of data and technology, the acquisition of customer knowledge and the diffusion of this knowledge to the appropriate stakeholders, the development of appropriate (long-term) relationships with specific customers and/or customer groups and the integration of processes across the many areas of the firm and across the network of firms that collaborate to generate customer value.” - Boulding, Staelin, Ehret and Johnston

CRM versus Traditional Marketing : 

CRM versus Traditional Marketing Traditional marketing focus on the four Ps (price, product, place and promotion) for increasing market share through increase in the volume of transactions between seller and buyer. While customer relationship management focus on using strategies, procedures, tools and technology for promoting the relationship between the seller and customer so as to increase sales revenue, profitability and customer satisfaction.

Attributes of Market Exchanges : 

Attributes of Market Exchanges Source: Lindgreen and Antioco, Customer Relationship Management

Components of CRM : 

Components of CRM

Business Drivers of CRM : 

Business Drivers of CRM Averagely, the cost of retaining a customer is less than that of acquiring a new one. A dissatisfied customer may become aggressive opposition Advances in electronic commerce provides wide range of relationship opportunities for boosting customer loyalty and satisfaction

Assumptions of CRM : 

Assumptions of CRM Current information is right Consumers prefer individual, differentiated treatment, services and products The future behaviour of consumers depends on their past behaviour

Myths of CRM : 

Myths of CRM Successful CRM needs complete customer data and a very large database CRM is a gigantic project Very good CRM technology system guarantee excellence in business Segmentation is a prerequisite to CRM CRM needs highly advanced analytics

Key Cost Goals of CRM & Action Points : 

Key Cost Goals of CRM & Action Points Trim down cost of sales and distribution- Deploy web applications for reducing sales force- Manage customer relationships instead of products- Use focused advertising to target customers Boost sales revenue growth by increasing customer satisfaction- Enhance sales by cross-selling- Enhance sales by up-selling Reduce customer support costs- Provision of appropriate level of information to customer facing personnel- Call center automation for easy access to information Reduce cost requirements for customer satisfaction- Manage customer experience- Deploy customer profitability analytics

CRM versus Database Marketing : 

CRM versus Database Marketing Database marketing is a company-centric technique which focus on using discount programmes and promotions to sell more products to customers for less cost: Therefore it’s difficult to use it for building customer loyalty. While Customer relationship management focus on enduring relationship with customers by identifying and providing customer values in the context of customer’s viewpoint and not based on the company’s opinion: Therefore it’s easy to use it for building customer loyalty.

eCRM : 

eCRM eCRM involves matching and blending people, processes and technology for enabling an organisation to attract, retain and partner with customers to facilitate enhancement of value to both customers and the organisation.

CRM versus eCRM : 

CRM versus eCRM The infusion of applicable electronic technology including database-driven software, business intelligence and web systems to the customer relationship strategy of a firm so as to achieve established objectives depicts eCRM. While CRM focus on the generic application of a firm’s customer relationship strategy in achieving established objectives.

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Customer relationship management provides opportunity for expectations of customers to be properly identified, explored and used for controlling value proposition with the aim of increasing customer satisfaction.

Customer Expectations Versus Experienced Service : 

Customer Expectations Versus Experienced Service Model A Model B

Benefits of eCRM to a Firm : 

Benefits of eCRM to a Firm Transaction security Personalized services Relationship with customers eMarketing Using email for communication Enhanced workflow Large data storage Advanced analytics Time efficiency

Benefits of eCRM to Customers : 

Benefits of eCRM to Customers Convenience Confidence Service quality Transaction process speed Structured interaction

Steps for Achieving Goals of CRM : 

Steps for Achieving Goals of CRM Customer Identification Customer Differentiation Customer Interaction Customization

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Dr. Elijah Ezendu is a multidisciplinary professional whose business experience mounts through diverse fields. He is a Certified Management Consultant, licensed by International Council of Management Consulting Institutes which has a Special Consultative Status in United Nations Economic and Social Council. As a result of his strides in management consulting, he received Merit Award for Excellence in Consulting. He is concurrently Senior Partner, Shevach Consulting; Director of Strategy and Performance, Fortuna; Lead Assessor and Member of Governing Council, Institute of Management Consultants; Director of Training, International Council of Business Development Professionals; Member of Marketing Committee, International Council of Management Consulting Institutes; Honorary Global Advisor, International Project Management Commission; and Programme Coordinator (Nigeria), Regent Business School, South Africa. He holds a doctoral degree in Management from St. Clements University, British West Indies. He is a Chartered Manager certified by Canadian Institute of Management, Canada and holds numerous professional qualifications including Master Project Manager; Project Manager E-Business; Fellow, Institute of Management Consultants; Fellow, Certified Institute of Cost Management; Fellow, Institute of Business Development; Fellow, American Academy of Financial Management; Fellow, Institute of Internal Auditors; Member, Nigerian Institute of Training and Development; Member, Institute of Analytics Professionals; Associate, Chartered Institute of Personnel Management of Nigeria; Associate, Chartered Institute of Arbitrators (Nigeria). He is a Certified Business Development Analyst and Competitive Intelligence Professional. Additionally, he is an information technology management professional certified by Institute for the Management of Information Systems, UK along with Microsoft Corporation, USA and stands as a Member of International Association of Software Architects. He is an outstanding motivational speaker with a knack for recalibration of positive influence; and a world-class consultant, who has functioned as Speaker/Facilitator at myriad programmes of professional institutes, international development organisations, private and public firms including extra-governmental agencies and institutions. He is a prolific writer and author who had served as Editor-in-Chief, Cost Management Journal; Part-Time Lecturer & External Examiner (MBA Programme), Ladoke Akintola University of Technology; Director of MBA Programme (Nigerian Outreach), Management Institute of Canada; Chief Operating Officer, Rohan Marine; Second Vice President and Member of Governing Council, Certified Institute of Cost Management; Director of Programmes and Member of Governing Council, The Institute of Business Development; Director, Refined Shipping; and Examiner to various Professional Institutes.

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Gracias Dr. Elijah Ezendu elezendu@yahoo.com, 234 8033024596, 234 8058835237