Role of CRM in services

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By: pavankumar9324 (103 month(s) ago)

Rohit, it is really cool video with lots of information.

By: pavankumar9324 (103 month(s) ago)

Rohit, it is really cool video with lots of information.

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Role of CRM in services : 

Mar-10 ROHIT SHARMA MBA 2007 1 Role of CRM in services Submitted to: Mr. Vivek Submitted by: ROHIT SHARMA

CRM : 

Mar-10 ROHIT SHARMA MBA 2007 2 CRM The concept of CRM is premised on the simple logic of business : it must keep tracking customers once attracted; retain them in business portfolio and profit from their growth. CRM epitomizes the ‘ marriage of relationship marketing with the emerging information technology’. Integration of “people, process , technology and data”

CRM can be viewed in 4 principal ways : 

Mar-10 ROHIT SHARMA MBA 2007 3 CRM can be viewed in 4 principal ways Firstly it is a contemporary response to the emerging climate of unprecedented customer churn, waning brand loyalty and lower profitability. Secondly, CRM is central to the task of making an organization customer centric. Thirdly, CRM is the surest symbol embracing IT in business. Fourthly , CRM is the most certain way to increase value to the customers and profitability to the practicing organizations.

Slide 4: 

Mar-10 ROHIT SHARMA MBA 2007 4 Effective CRM practices can mean the difference between the success and failure of a business across all industries. CRM is a way of differentiation between customers to provide greater value to more valuable customers. The meaning of more valuable would be in terms of the monetary spending received from the customer along with recency and frequency of visit.

Definition : 

Mar-10 ROHIT SHARMA MBA 2007 5 Definition “CRM is the business strategy that aims to understand, anticipate, manage and personalize the needs of an organization's current and potential customers" -- PWC Consulting Rather it is the IT face of business processes that aims to establish enduring and mutually beneficial relationships with customers in order to drive customer retention, value and profitability up.

Important features of CRM : 

Mar-10 ROHIT SHARMA MBA 2007 6 Important features of CRM It permits a one-to –one marketing as compared to mass marketing It stresses commitment over flirting It helps disintermediation and delayed distribution aspects. It helps reducing marketing cost significantly.

Slide 7: 

Mar-10 ROHIT SHARMA MBA 2007 7 As an example of the role of CRM , a report published in the Harvard Business Review identified that an increase in customer loyalty by 5 % could increase the profits in telecom by over 50% (Cockburn, 2000) A recent study by ICL for a UK Telco forecasts through a business model that a 10% churn in the segment of top customers would reduce the profits by more than 25%.

Retail in India : 

Mar-10 ROHIT SHARMA MBA 2007 8 Retail in India India 's largest industry, the retail sector is valued at $200 billion accounting for over 10 per cent of the country's GDP and around eight per cent of the country's employment. Modern retail has entered India as seen in sprawling shopping centers, multi-storied malls and huge complexes offer shopping, entertainment and food all under one roof.

CRM in Retail : 

Mar-10 ROHIT SHARMA MBA 2007 9 CRM in Retail Expectations of customer is increasing, he asks for more and more value for the same price, and whoever provides him increasing value for money, he buys products from that marketer. Every retailer today is aiming at an attempt to make a casual customer into a loyal customer who develops a bond with the retail store he/she visits. Customer relationship management as a transactional exchange helps the marketer to understand the customer's sentiments and buying habits so that the customer can be provided with products and services before he starts demanding them.

Slide 10: 

Mar-10 ROHIT SHARMA MBA 2007 10 A successful and effective CRM program results in increase of Customers Lifetime Value for the store. The variety of activities together play an important role in bringing repeat customers and in turn generating positive word of mouth to also increase new footfalls into the store. Data Mining activities through CRM also provides insights and knowledge about the retailers most valuable customers who result in maximum sales.

Slide 11: 

Mar-10 ROHIT SHARMA MBA 2007 11 The Pareto's Principle which talks about generating 80% of sales from 20% of the customers This can only happen if the retailer has the 20% as its most profitable customers and not just normal customers

Pantaloons : 

Mar-10 ROHIT SHARMA MBA 2007 12 Pantaloons Known as the ‘Green Card' it is divided hierarchically into One star, Three star and Five star. Every point generated at all the levels is equivalent to Rs.1 Criteria for points generation are: Upto 399 points – One Star – 1 point for Rs.50 400 or more additional points - Three star - 1 point for Rs.40 800 or more additional points – Five star - 1 point for Rs.25

Slide 13: 

Mar-10 ROHIT SHARMA MBA 2007 13 It also stays in touch with its loyal customers through Mailers, SMSes E-mails and Telephone informing them about the developments and promotions

Shoppers Stop : 

Mar-10 ROHIT SHARMA MBA 2007 14 Shoppers Stop Known as the ‘First Citizen Card' Classic Moments – Earn 1 Reward Point for every Rs.100 purchased. Silver Edge - Earn 1 Reward Point for every Rs.50 purchased. Golden Glow - Earn 1 Reward Point for every Rs.34 purchased. Every point generated at all the levels is equivalent to Rs.1 It has a special scheme wherein it offers private label reward points to its silver edge and golden glow members.

Piramyd Megastore : 

Mar-10 ROHIT SHARMA MBA 2007 15 Piramyd Megastore Known as the ‘ Piramyd Power Club ' It offers Silver, Gold and Platinum cards. There are discount % which is offered on both Piramyd Store and its supermarket. As one moves from Silver to Gold the discount percent also increases Piramyd Power Points are offered on all purchases. Silver, Gold and Platinum are awarded 1 point on every Rs. 80/-, Rs. 60/- and Rs. 40/- spent respectively.

What is so special in CRM programs which drive the customer back to the store? : 

Mar-10 ROHIT SHARMA MBA 2007 16 What is so special in CRM programs which drive the customer back to the store? It can be better understood from 2 perspectives: Tangible benefit + Intangible benefit = Loyalty to Brand The Tangible value: Discounts, Offers, Promotions, Payback

The Tangible value: : 

Mar-10 ROHIT SHARMA MBA 2007 17 The Tangible value: Discounts, Offers, Promotions, Payback Free Home delivery of altered merchandise Reserved Car Parking Special Counters Birthday and Anniversary Greetings Special movie shows

The Intangible Value : 

Mar-10 ROHIT SHARMA MBA 2007 18 The Intangible Value The Emotional Connect This implies the homeliness aspect which the customer feels for the time he/she spends inside the store. . The reasons for visiting may not always be purchase, however if emotional connect is developed with the store then as and when need arises the stores enjoy top of the mind recall from the customers.

Slide 19: 

Mar-10 ROHIT SHARMA MBA 2007 19 E.g. The experience with the local grocer and supermarket. At the grocer's the customer has to be clear with the requirements and there is little scope for too many questions. However at a supermarket, the customer is at ease to choose products without any limited time frame.

RPG Enterprise (India) : 

Mar-10 ROHIT SHARMA MBA 2007 20 RPG Enterprise (India) Rs. 6,60,000 million group CEO Harish Goenka Presence in diverse businesses as tyres, IT, telecommunications, power, retail, entertainment, life sciences. RPG focus is on service and customer retention.

Various initiatives : 

Mar-10 ROHIT SHARMA MBA 2007 21 Various initiatives The music lovers in India can walk into the RPG promoted digital kiosks at music world and create their own CDs from a base of 20000 songs. On the website, HamaraCD.com, RPG customers can buy customized CDs and have them delivered home. RPG created India's first hyper market which spans 120000 sq. ft and offers 20000 items at the most economic prices. the store remains open from 7 in the morning to 9 in the evening to provide customer convenience while shopping.

Singapore Airlines : 

Mar-10 ROHIT SHARMA MBA 2007 22 Singapore Airlines SIA has become a role model for service in the airline industry. Focus on customer retention as its highest priority Constantly innovates its service to retain existing clients and to attract new customers. Awards: “ Airline of the Year"," best trans-pacific airline” (2003),”world’s best service award”

On board : 

Mar-10 ROHIT SHARMA MBA 2007 23 On board On board the airline provided some of the best food, & most importantly ”serves it with smiles”. Passengers are treated with special attention. SIA offered small water bottles to passengers since water glasses tend to fell off when passengers are asleep Introduced an entertainment system called Krisworld. Provided individual video screens for each passenger of each class and programs included 22 video channels along with12 audio channels, 10 games and real-time text news that are updated every hour.

Ground service : 

Mar-10 ROHIT SHARMA MBA 2007 24 Ground service Every aspect of ground service was looked into such as: How many times the reservation phone rang before being answered or how long customers had to wait to check in. Check-in services were made flexible and passengers could also check-in through fax or telephone.

Slide 25: 

Mar-10 ROHIT SHARMA MBA 2007 25 SIA had a frequent flyer program-Kris flyer. A member of this program earned a specific number of miles every time he/she traveled by SIA. These miles could be converted into free flights to any destination.

CRM solutions through IT packages : 

Mar-10 ROHIT SHARMA MBA 2007 26 CRM solutions through IT packages A successful CRM implementation will allow Customer Service, Sales and Marketing people (and anyone else in your organization) to have a holistic view of each and everyone of your customers. Thus this will enable them to make quick, informed decisions, create cross selling and up selling opportunities, measure marketing effectiveness and deliver personalized Customer Care

Slide 27: 

Mar-10 ROHIT SHARMA MBA 2007 27 Sales force automation software (SFA) that focused on customer contact management to integrated knowledge management solutions, these were the early foundations of CRM Customer Relationship Management is about people first and technology second. That’s where the real value of CRM lies, harnessing the potential of people to create a greater customer experience, using the technology of CRM as the enabler.

Tata consultancy services. : 

Mar-10 ROHIT SHARMA MBA 2007 28 Tata consultancy services. TCS' Customer Relationship Management (CRM) Practice is a global leader in providing high value solutions to clients. TCS CRM practice spans multiple technologies, functional areas and industry verticals and has alliances with the leading CRM product vendors

Slide 29: 

Mar-10 ROHIT SHARMA MBA 2007 29 TCS’ CRM practice leverages its relationship with its partners to provide the best industry practices & solutions that would add value to its clients. Details of alliances are given as: Siebel Oracle People soft Chordiant Salesforce.com SAP Microsoft Saleslogix

Role of CRM Application in Small Business : 

Mar-10 ROHIT SHARMA MBA 2007 30 Role of CRM Application in Small Business CRM application is an essential software tool for all small businesses. Big and small businesses aim for profit maximization. This can be realized by providing excellent customer-centric services. CRM application helps in achieving the same in an efficient cost-effective manner. The need for CRM Application for small business as given below:

Slide 31: 

Mar-10 ROHIT SHARMA MBA 2007 31 Collection and analysis of customer information. Integration and availability of mission critical data, for all the employees on demand any where any time. Automated sales, to facilitate faster provision of product-centric services synchronizing with the changing trends. In order to plan your marketing strategies, which in-turn will ensures quicker turn-around time to product-centric services. Using a CRM application to plan your marketing strategies, ensures quicker turn-around time to product-centric services.. Fully scalable web-based feature-rich streamlined approach. Secure as well as low risk data base

Banking, Insurance industry : 

Mar-10 ROHIT SHARMA MBA 2007 32 Banking, Insurance industry Provides facilities with a very high degree of customization . Services include wealth management, investments, insurance plans , property guidance etc All these services are provided tailored to the individual requirements. Leading companies include HSBC bank, ICICI bank, ICICI prulife etc.

Slide 33: 

Mar-10 ROHIT SHARMA MBA 2007 33 THANKS FOR LISTENING

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