CHAPTER NO :01

INTRODUCTION TO CRM

WHAT IS CRM?
CRM is the process of managing all aspects of
interaction a company with its customer ,including
prospecting ,sales and service .CRM application
attempt to provide insight into and improve the
company /customer relationship by combining all
these views of customer interaction into one picture.
Business strategy that maximize profitability,
revenue and consumer satisfaction through
organizing customer segments, fostering behavior
that satisfy customer and implementing customercentric process.

WHAT IS CRM?
CONT
CRM is an information term for
methodologies, software and usually
Internet capabilities for helping
enterprise manage customer
relationships in an organized way.

TYPES OF CRM
1.
2.
3.
4.

Strategic CRM
Operational CRM
Analytical CRM
Collaborative CRM

1. STRATEGIC CRM
Core customer-centric
business strategy
Aim of winning and keeping
profitable customers
Development of customer
centric business culture.
Culture reflected in:
leadership behavior
Design of formal system of
company
Myth and story with in the
firm

 CONT.
culture

Customer

Create value

Deliver value

CONT
BUSINESS ORIENTATIONS
According to Kotler Business
orientation
Product orientated
Production orientated
Sales orientated
Customer/market oriented

2.OPERATIONAL CRM
Focus on :
Automation of customer facing
processes:
Selling automation
Marketing automation
Customer service automation

CONT Sales Force

Automation
SFA is designed to automate salesforce-related activities.
lead generation
Lead qualification
Need identification
Proposal generation

CONT SFA
Selling activities

Improvement of
selling activities

Standardization
of selling process

CONT MARKETING
AUTOMATION
MA applies technology to marketing
processes.
Campaign management
Event based marketing
Trigger marketing

CONT Customer service

automation
Allow companies to manage their
service operations.
It is differentiated significantly on
depending on the product being
served
Crm software
Call routing software

3.ANALYTICAL CRM
Focus on:
Intelligence mining of
customer related data for
strategic or tactical
purposes.
It is based on customer
related information.
Essential part of CRM
implementation
It lead companies to
decide that selling
approaches should differ
between customer groups.

ANALYTICAL CRM
Customer point of view:
Deliver timely, customized,
solutions to the customer problem

customer satisfaction

ANALYTICAL CRM CONT

Company point of view:
prospect of more powerful cross-selling and up-selling
programmes

Customer retention and customer acquisition programmes

4.COLLABORATIVE CRM
Applies technology across
organizational boundaries for
optimizing company, partner and
customer value.
Strategic and tactical alignment of
normally separate enterprise in the
supply chain of the more profitable
identification ,attraction, retention
and development of customers

COLLABORATIVE CRM
CONT
It enable organizations to
align their efforts to service
customer more effectively.
Share valuable information
along supply chain
PRM-enable companies to
manage complex partner
and reduce cost of channel
management.

MISUNDERSTANDING ABOUT
CRM
Misunderstanding 1:
CRM is database marketing
Misunderstanding 2:
CRM is marketing process
Misunderstanding 3:
CRM is an IT issue
Misunderstanding 4:
CRM is about loyalty schemes
Misunderstanding 5:
CRM can be implemented by any company

DEFINING CRM
It is core business
strategy that
integrates internal
processes and
functions and
external network to
create and deliver
value to targeted
customer at a
profit.

CRM CONSTITUENCIES
Companies
Customer and partner of those
companies
Vendor of CRM software
CRM application service
provider(ASPs)
Vendor of CRM hardware and
infrastructure
Management consultants.

CONTEXT OF CRM
Commercial

Banks
Automobile
manufactures
High tech companies
Consumer goods
manufacturers.

Not for Profit

Universities
Salvation army

MODEL OF CRM
1.
2.
3.
4.
5.

IDIC MODEL
QCI MODEL
CRM VALUE CHAIN
PAYNE FIVE PROCESS MODEL
GERTNER COMPETENCY MODEL

1.IDIC MODEL
Developed by Peppers and Rogers
Four action to be taken by company
in order to build closer one-toone
relationship with customers:
Identify
Differentiate
Interact
customize

IDIC MODEL CONT

( Peppers and Rogers, 2004)

2.QCI MODEL
Model act as a customer
management model, omitting the
word relationship.
Model features people performing
processes and using technology to
assist in those activities.
Product for consultancy firm .

2.QCI MODEL
CONT

(Hewson et all, 2002)

3.CRM VALUE CHAIN

Francis Buttle model consist of five primary
stages and four supporting conditions leading
towards the end goal of enhanced customer
profitability.
Primary stages:
Portfolio analysis ,customer intimacy ,work
development ,value proposition development
Supporting condition:
Leadership and culture, data and IT, people and
processes enable the CRM strategy to function
effectively and efficiently.

3.CRM VALUE CHAIN

CONT

The CRM Value Chain (Buttle,

2000)

4.PAYNE FIVE PROCESS MODEL

Developed by Adrian Payne.
It identifies five core processes in
CRM:
Strategy development process
Value chain process
Multichannel integration process
Performance assessment process
Information and management
process

4.PAYNE FIVE PROCESS MODEL

CONT
Strategy development process
Value chain process

strategic CRM

Multichannel integration process

Operational CRM

Performance assessment process

Analytical CRM
Information and management process

4.PAYNE FIVE PROCESS MODEL

CONT

(Payne, 2006)

5. GARTNER COMPETENCY MODEL

By Gartner INC. It is leading research and advisory
company.
It suggest companies need competencies in eight areas
for CRM to be successful. It include:
CRM vision
Developing CRM strategies
Designing valued customer experiences
Intra and extra-organizational collaboration
Managing customer lifecycle processes
Information management
Developing measure indicative of CRM success or failure.

CONT

Assignment No 1
Five Model of CRM
Please read them and write a
summary of two page hand written
for each model and submit before
next class.
Matching idea, thoughts and style
would be consider plagiarism and
hence it would not be marked

THE END