13-08-2012, 02:18 PM
Customer Relationship Management
CRM - PDF.pdf (Size: 1 MB / Downloads: 299)
WHAT IS CRM?
Customer relationship management (CRM) has the business purpose of intelligently finding, marketing, selling to and servicing customers. CRM is a broadly used term that covers concepts used by companies, and public institutions to manage their relationships with customers and stakeholders. Technologies that support this business purpose include the capture, storage and analysis of customer, vendor, partner, and internal process information. Functions that support this business purpose include Sales, Marketing and Customer Service, Training, Professional Development, Performance Management, Human Resource Development and compensation.
NEED OF CRM:
The experience from many companies is that a very clear CRM requirement with regards to reports, e.g. output and input requirements, is of vital importance before starting any implementation. With a proper demand specification a lot of time and costs can be saved based on right expectations versus systems capability. A well operative CRM system can be an extremely powerful tool for management and customer strategies. CRM is not just a technology, but rather a comprehensive approach to an organization’s philosophy in dealing with its customers. This includes policies and processes, front-of-house customer service, employee training, marketing, systems and information management. Hence, it is important that any CRM implementation considerations stretch beyond technology, towards the broader organizational requirements.
Functional CRM:
This model of implementation is possible only with the large scale organizations. This will be possible only with the organizations which will not be having any departmental coordination. These modules will work only for the particular departments. This can be called as specialized modules. Because of this departmentwise implementation the initial amount spent will always be higher than the Return On Investment (ROI). This method will benefit only to the specific area not to the entire organization. For example, we can consider the company like TATA which will be having various types of business with variety of modules where the commonality will be very less. In this kind of situation this type of CRM will come into the picture.
CUSTOMER LIFE CYCLE (CLC):
In customer relationship management, customer life cycle is a term used to describe the progression of steps a customer goes through when considering, purchasing, using, and maintaining loyalty to a product or service. Marketing analysts Jim Sterne and Matt Cutler have developed a matrix that breaks the customer life cycle into five distinct steps: Reach, Acquisition, Conversion, Retention and Loyalty. In layman‟s terms, this means getting a potential customer‟s attention, teaching them what you have to offer, turning them into a paying customer, and then keeping them as a loyal customer whose satisfaction with the product or service urges other customers to join the cycle. An ellipse, representing the fact that customer retention truly is a cycle and the goal of effective CRM is to get the customer to move through the cycle again and again, often depicts the customer life cycle. For any company, it is far cheaper to retain existing customers than to acquire new customers. Therefore presuming that this is the goal of most of the companies.
Customer centric metrics do not exist.
Most CRM offerings have weak metrics and measurement capabilities. Generally those with customer profitability, return on investment of customer interaction and lifetime value of a customer because data needed for this falls outside the reach and design of channel centric system. Instead they focus on operational metrics such as wait time on calls, the number of annoyed callers. While these metrics are important to run various channels operationally, they fail to address the question. Are we investing the right amount of resource on customers with the most value? Answering the question requires a holistic view of customer experience.
CRM - PDF.pdf (Size: 1 MB / Downloads: 299)
WHAT IS CRM?
Customer relationship management (CRM) has the business purpose of intelligently finding, marketing, selling to and servicing customers. CRM is a broadly used term that covers concepts used by companies, and public institutions to manage their relationships with customers and stakeholders. Technologies that support this business purpose include the capture, storage and analysis of customer, vendor, partner, and internal process information. Functions that support this business purpose include Sales, Marketing and Customer Service, Training, Professional Development, Performance Management, Human Resource Development and compensation.
NEED OF CRM:
The experience from many companies is that a very clear CRM requirement with regards to reports, e.g. output and input requirements, is of vital importance before starting any implementation. With a proper demand specification a lot of time and costs can be saved based on right expectations versus systems capability. A well operative CRM system can be an extremely powerful tool for management and customer strategies. CRM is not just a technology, but rather a comprehensive approach to an organization’s philosophy in dealing with its customers. This includes policies and processes, front-of-house customer service, employee training, marketing, systems and information management. Hence, it is important that any CRM implementation considerations stretch beyond technology, towards the broader organizational requirements.
Functional CRM:
This model of implementation is possible only with the large scale organizations. This will be possible only with the organizations which will not be having any departmental coordination. These modules will work only for the particular departments. This can be called as specialized modules. Because of this departmentwise implementation the initial amount spent will always be higher than the Return On Investment (ROI). This method will benefit only to the specific area not to the entire organization. For example, we can consider the company like TATA which will be having various types of business with variety of modules where the commonality will be very less. In this kind of situation this type of CRM will come into the picture.
CUSTOMER LIFE CYCLE (CLC):
In customer relationship management, customer life cycle is a term used to describe the progression of steps a customer goes through when considering, purchasing, using, and maintaining loyalty to a product or service. Marketing analysts Jim Sterne and Matt Cutler have developed a matrix that breaks the customer life cycle into five distinct steps: Reach, Acquisition, Conversion, Retention and Loyalty. In layman‟s terms, this means getting a potential customer‟s attention, teaching them what you have to offer, turning them into a paying customer, and then keeping them as a loyal customer whose satisfaction with the product or service urges other customers to join the cycle. An ellipse, representing the fact that customer retention truly is a cycle and the goal of effective CRM is to get the customer to move through the cycle again and again, often depicts the customer life cycle. For any company, it is far cheaper to retain existing customers than to acquire new customers. Therefore presuming that this is the goal of most of the companies.
Customer centric metrics do not exist.
Most CRM offerings have weak metrics and measurement capabilities. Generally those with customer profitability, return on investment of customer interaction and lifetime value of a customer because data needed for this falls outside the reach and design of channel centric system. Instead they focus on operational metrics such as wait time on calls, the number of annoyed callers. While these metrics are important to run various channels operationally, they fail to address the question. Are we investing the right amount of resource on customers with the most value? Answering the question requires a holistic view of customer experience.