PRESENTATION ON CUSTOMER RELATIONSHIP MANAGEMENT PRESENTED BYBYMOHD SAEED PGD07042 PGDM,IMS DEHRADUN
CUSTOMER RELATIONSHIP MANAGEMENT CRM is the strategic use of information, process, technology, and people to manage customer¶s relationship with your company (marketing, sales, services and support ) across the whole customer life cycle. Although our definition of CRM is broad and complex but its goal is simple To maximize maxim ize the value of your company¶s customer asset. including
Customer loyalty Company¶s revenue Company¶s profit
ELEMENTS OF DEFINITION CRM focused on strategic impact rather than operational impact. Benefits are generally long term rather than immediate. CRM is total discipline. To understand CRM it as having a same component as any manufacturing busines. Lets take it as. CRM technology People
Machine
Power
Customer information Process and interaction
Raw material Product
CRM technology and people to turn customer information into process and interaction that builds customer loyalty loyalty.. CRM includes all the functions that directly touch the customer throughout his/her entire life with your company. It touches multiple organizations and crosses boundaries but function usually included in CRM effort is marketing, sales, customer services and product support ( it is whether internal or through channel partner, whether on or off the web. ± so the the definition definition of CRM is quite broad and covers covers many,but many,but CRM is limited to activity that take place in the customer facing function including marketing, sales, services, and product support. It means it is limited to front office function.
COMPONENTS OF CRM 1.
INFORMATION : Information is raw material of CRM. These type of information are useful to CRM. Identification data Marketing data List data Overlay data
2. PROCESS : Customer centered processes processes are the ³product´ of CRM. some examples are; All current process that directly touch the customer. Touch T ouch points by which we interact with customer such as phone, e-mail etc. Integrating and rationalizing the processes from
TECHNOLOGY:: Technology is machinery that enables the CRM TECHNOLOGY C RM to work. These are examples of technologies that CRM may find useful; Software product (process automation tools, analysis tools, web site development, and management tools.) Networking and integrating application and database. Security features, such as encryption tools and firewalls.
PEOPLE:: People are power supply of CRM. The energy source PEOPLE must be set to the right voltage for entire system to work. People P eople are reset through various change management tools and support mechanisms, such as; Training and education. New tools. Measurement and rewards.
CUSTOMER LIFE CYCLE The customer life cycle is total time that a customer is engaged with your company from the customer¶s cus tomer¶s experience and viewpoint. There is high level of cycle that is consistent for customers, no matter the product or services and no matter how much how much the customer spend on each stage; 1. Consider: Customer becomes aware of need and investigates i nvestigates alternative solution. 2.Purchase: Customer evaluates and chooses the best alternatives al ternatives and place an order. 3. Set
up:
Customer install the product and learn how to use it.
4. Use: Customer operates and maintain the product and finally makes the decision to retire it or upgrade, which starts the cycle all over again.
THE CUSTOMER LIFE CYCLE
THE CRM HIERARCHY Increased Customer Loyalty= Increased profit Integrated and Personalized interaction That increased value to customer Data enabled processes/tools Integrated customer knowledge
NEED OF CRM Why CRM ? Keeping in mind the pace at which whic h technology is changing today, any company which is a step ahead of others because of some web product produc t or service will not be able to hold on to that advantage for long. The key to stability in today's dynamic marketplace is forging longlong-term -term relationships with the customers.
Customers can be divided into th t hree zones: 1. Zone of defection defecti on where customers are extremely hostile and have the lowest level of satisfaction. 2. Zone of indifference where customers are not sure. They have a medium level of satisfaction and loyalty towards the company. c ompany. 3. The third level of customers are in the zone of affection described as "Apostles". CRM focuses on bringing customers from level 1 to level 3 and retaining apostle customers.
How would you expect th the storekeeper at your nearest store, wh where you are a frequent visitor, to offer y offer you personalized service? Well,
he would know your favorite items and preferred brands, won't he? So, he organizes them to be in your easy reach. Perhaps he may himself suggest a new product, which was introduced recently, recently, that falls f alls within your Interest area. Now this is not very imaginative isn't it? It required quite a f ew visits for you to get this personalized service. W hat about someone just like you who is coming to this store for the first f irst time? To make it more clear, now consider your storekeeper friend. Based B ased on his data about you, he can go a step further and watch your buying pattern. He also tries to understand all the youth in a similar age group and then tries to say that all youth in the age group 21- 29 who come to my store prefer these types types of products. Their buying peaks in summer and therefore it makes sense to run promotions targeting the youth youth in summer summ er .
IMPORTANCE OF CRM CRM Customer Relationship Management is one of the newest newes t innovations in customer service today. today. CRM stands s tands for customer relationship relati onship management and helps the management and customer service staffs cope with customer Concerns and issues. CRM involves gathering a lot of data d ata about the customer. The data is then t hen used to Facilitate customer service transactions by making the information inf ormation needed to resolve the issue Or concern readily available to those dealing with the customers. custo mers. This results in more satisfied customers, a more profitable prof itable business and more resources available to the support staff. Further more, CRM Customer Relationship Relationshi p Management systems are a great help to the management in deciding on the future course of the company. company. As mentioned, there is much data needed for the CRM system to work. These fields include the customer name, address, date of transactions, pending and finished transactions, issues and complaints, status of order, shipping and fulfillment dates, account information, demographic data and many more. This inf ormation is important in providing the customer the answer that he or she needs to resolve the issue without having to wait for a long time and without going to several departments
With
just a few mouse clicks, clicks , a customer support representative for example can track the location of the customer¶s cus tomer¶s package or order. This is infinitely better than the cumbersome process of tracking shipments shi pments previously. previously. Furthermore, the customer service representative will also be able to see s ee the previous concerns of the customer customer.. This is a great help especially if the customer is calling about the same issue since he or she will not have to repeat the story all over again. This results in less time in resolving the issue, thus, higher productivity of the support staff. CRM Cu Cust stom omer er Re Rela lati tion onsh ship ip Man anag agem emen entt sy syst stem ems s ar are e al also so im impo porrta tant nt to th the e to top p man anag agem emen entt be beca caus use e it pr prov ovid ides es cr cruc ucia iall da data ta li like ke cu cust stom omer er sa sati tisfa sfact ctio ion n an and d ef effi fici cien ency cy of se serrvi vice ce by th the e fr fron ontl tlin ine e cr crew ews. s. A pi piec ece e of cu cust stom omer er re rela lati tion onsh ship ip man anag agem emen entt soft so ftwa warre wi will ll al also so be ab able le to ge gene nera rate te th the e ne need eded ed re repo port rts s fo forr pr prod oduc uctt de dev vel elop opm men entt or new con onc cept pts s. Furthermore, this sy syst ste em wil illl also be a great help fo forr the top man anag agem emen entt in de deci cidi ding ng th the e co com mpa pany ny¶¶s fu futu turre co cour urse se of ac acti tion on,, wh whet ethe herr it in inv vol olv ves phasing out one of the products on the shelves or making adjust stm ments to one of the product pro ducts s sold sold..
CRM IN HOTEL INDUSTRY In the world of servicing guests, there are as many challenges as there are, well... challenging customers, but I think in the current age of "branding" one of the biggest ones is ensuring a consistent consi stent customer service experience. This challenge is threepronged: First, managers must be able to manage consistency in the face of interchanging slow and busy times and seasons. seasons . Second, consistency needs to be ensured across job titles, roles, and pay ranges. Third (or perhaps First, if you'd like), li ke), the marketing message must be in tune with a plan to set guest expectations according to the season and customer tier considerations. The guest servicing standards themselves should focus on not just consistent responses, but also should prevent consecutive consecuti ve negative experiences. In other words, if a guest has experienced a negative event (i.e. complained that the room wasn't clean upon check in), this fact needs to be captured and made available to customerfacing employees so that they can put an extra effort into making sure that tha t the remainder of the hotel stay or restaurant experience is as positive as possible.
A further back-end benefit to capturing the negative event information is that it will enable analysis of customer experience shortcomings. This in turn allows for active methods for f or managing, monitoring, and predicting customer satisfaction, which can then lead to fine-tuning the marketing message, interaction standards, and employee training. Predictive analytics can be used to understand latent pain or dissatisfaction before it percolates and impacts customer loyalty loyalty..
CRM SOLUTION Customer relationship management (CRM) (CRM) is more than the practice of collecting guest-centric data. It¶s the art of using historical, personal, and experiential information to personalize a guest¶s stay while generating incremental revenue opportunities. Knowing a traveler is an avid sports fan creates the opportunity to market tickets to a game; knowing a guest had a less-than-memorable experience in the hotel restaurant gives you a chance to win them back the next time they are in town. Microsoft partners have developed a number of leading CRM solutions based on the latest generation of Microsoft technology. technology. Using the Microsoft Microsof t suite of applications, devices, and technology, technology, Microsoft partners can provide you with CRM solutions that personalize the guest experience and help you generate more revenue.
With
the latest offerings offerings in CRM, hoteliers can
Develop comprehensive guest profiles from reservation information and demonstrate to guests that the property is in touch with their needs. Drive guestguest-centric -centric data down to the transaction level, allowing al alllowing owing employees and guestguest-facing -facing technology to deliver greater value to the guest. Generate a realistic profile on the spending and stay patterns of guests, allowing the property to create guestguest -centric -centric marketing for increased loyalty and spending
