INDEX

Sr. No. Content Page No.

1 Introduction 11
2 Today’s Customer & Today’s Companies 12
3 Why Business Need To analyse Customer Satisfaction 13
4 Traditional vs modern customer relation 14
5 Objective of CRM 15
6 Component of CRM 17
7 Typology of Customer Relationship 20
8 Types of CRM 22
9 What is the CRM process Cycle 26
10 Importance of CRM 31
11 Benefit of CRM 33
12 Potential Drawback of CRM System 38
13 Ethical Issues In CRM 40
14 Marketing Initiative of CRM 42
15 Measurement of CRM 46
16 CRM Evaluation 48
17 Walker Loyalty Matrix 50
18 The essence of CRM in Banking 52
19 Challenges faced by CRM 55
20 e-CRM 57
21 Features of CRM & e-CRM 58
22 Advantage & Disadvantage of CRM 61
23 Benefit of e-CRM 65
24 Opportunities of CRM 66
25 Different types of organization implementing e-CRM 68
26 Recent Trend in CRM 69
27 Problem with e-CRM implementation 72
28 Privacy Issue in e-CRM 74
29 Example of e-CRM 75
30 Conclusion 78
31 Data Analysis
32 Bibliography
33 Reference Book 80
34 ANNEXURE
1
INTRODUCTION

Customer relationship management (CRM) is all about managing the

relationship With your customers. It is the process of predicting customer behavior &
selecting action to Influence the behavior to benefit the company usually leveraging
on information technology & database related tools. In simple word CRM is a tool to
understand customer better, so you can give better service, promote suitable
products, identify selling opportunities, understand customer complaints more deeply
etc.

Customer Relationship Management include strategies and processes

for acquiring and retaining customer to create superior value for both company &
customers. Customer relationship management is a technology driven strategy that
aims to strengthen business operations and build a mutually valuable long-term
relation with customers.

DEFINITION

“ CRM is the strategic use of information, processes, technology and

people to manage the customers relationship with your company (marketing, sales,
service and support) across the whole customer Life Cycle.”

By − Ms. Judhit W

Kincaid “ The purpose of Business is to create customers”

By − Peter Drucker

1
ORIGIN

Customer relationship Management originated in early 1970s when

the business units had a manifestation that it would be advisable to become
‘Customer emphatic ‘ rather that ‘product emphatic’. Birth of CRM was because of
this careful perceptiveness.

TODAY’S CUSTOMER

 Are Sophisticated.
 Are Price Sensitive.
 Are demanding.
 Live time-compressed lives.
 Want their needs met.
 Want their products fast with greater convience.
 Have unprecedented control

TODAY’S COMPANIES ARE:

 Are digital companies.

 Flatten (less hierarchy).
 Location Independent.
 Decentralization
 Flexibility
 Low transaction and coordinating cost.
 Using strong IT infrastructure

2
(Enterprise Software, Hardware, Internet, LAN, WAN etc…

3
WHY BUSINESS NEED TO ANALYSE CUSTOMERS
SATISFACTION

1. Customer satisfaction increases loyalty.

It might be a statement of the
obvious, but customer satisfaction is
the main reason as to why a customer
remains loyal to your business.

2. Customer satisfaction increases customer lifetime value.

In Short, LTV is a marketing metric that predicts the total profit
accumulated from a future relationship with a customer.

3. Customer satisfaction reduces churn.

Above all, if your customers are satisfied, then they have little reason to stop
doing business with you in the first place. But never think that you are immune to a
competitor swopping in and marketing them a better offer.

4. It´s cheaper to retain customers than acquire new ones.

We all that acquiring a new customer can cost six or seven times more
than it does to retain your current customer. Why is it then that most
companies do a poor job in keeping their current customers satisfied.

5. Customer satisfaction is a great point of differentiation.

In today’s competitive world where several businesses compete over
each customer, customer satisfaction can quickly become a key
differentiator. Many businesses offer products and services that can be very
similar in terms of features, quality, and price.

4
TRADITIONAL VS MODERN CUSTOMER RELATION

B&S RM CIMS CRM E-CRM

Time Line Late 80’s Early 90’s Mid 90’s 2002-Future

• B&S − Buying & Selling

• RM − Relationship Marketing
• CIMS − Customer Information Management System
• CRM − Customer Relationship Management
• E-CRM − A subset of CRM that focuses on enabling customer interactions
via E-channels (The Web, email and wireless)

As marketing has entered the 21st Century, a significant change is taking

place in the way companies interact with customers. The traditional view of
marketing as a simple exchange process- a concept that might be termed transaction-
based marketing is being replaced by a different, longer-term approach.

Traditional marketing strategies focused on attracting consumers. The goal was

to identify prospects, convert them to customers, and complete sales transaction. But
today’s marketers realize that, although it remain important, attracting new customers
is truly an intermediate step in the marketing process.
Marketing efforts must focus on establishing and maintaining mutually beneficial
relationships with existing customers

5
 OBJECTIVE OF CRM

In order to get the most from Customer Relationship Management, you

have to have a clear set of CRM objectives and goals. Although customer
relationship management can be loosely defined as the process of building and
maintaining good relationships with your customers, there are many improcements
that a well-designed CRM plan can help you accomplish. Following are some of the
objective of CRM

1. Improve customer satisfaction.

Happy customers are loyal customers and they also offer good word
of mouth advertising, which can be invaluable. Making customer satisfaction
the primary goal of your CRM campaign is the surest way to improve your
bottom line. This can be achived by fostering increased customer engagement
via social networking sites and various mobile platforms.

2. Improve the Efficiency of your Business.

CRM can help you eliminate redundancies in your marketing

campaigns by allowing you to intuit which stage of the purchasing process
each returning customer is in. You can send out marketing materials that
are targeted to specific interests and purchasing abilities, rather than

6
 transmitting general messages that are far less likely to generate an optimalamount of
attention.

3.Expand you Customer Base.

It is important to note that CRM is not just for managing the customers you already
have. A CRM program that is linked to a high-qualityknowledge management platform
will allow you to stay in contact with prospects that have yet to convert.

4. Enhance Your Sales And Support Teams.

One of the most important CRM objectives to consider is enhancing your

team. By better learning the needs of the people you service, you can become
increasingly adept in identifying the right talent to provide these services.

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 COMPONENT OF CRM

SalesForce
Automation
Human
Analytics Resource
Management

Business Lead
COMPONENTS Management
Reporting

Workflow Customer
Automation Service

Marketing

1. Sales Force Automation.

Sales Force Automation is the most essential components of customer

relationship management. This is one such component that is undertaken by
the maximum business organizations. It includes forecasting, recording sales
processing as well as keeping a track of the potential interactions. The
component also includes analyzing the sales forecasts and the performances
by the workforce.

8
 2.HUMAN RESOURCE MANAGEMENT

It involves the effective and correct use of human resource and skills
at the specific moment and situation. This requires to be make sure that the
skills and intellectual levels of the professionals match the tasks undertaken
by them according to their job profiles. It is an essential component not
only for the large scale corporations but the medium industries as well.

3.Lead Management

Lead Management as the name suggests, refers to keeping the track of

the sales leads as well as their distribution. The business that are benefitted
by this component of CRM the most are the sales industries, marketing
firms and customer executive centers. It involves an efficient management
of the campaigns, designing customized forms, finalizing the mailing lists
and several other elements.

2. Cutomer Service.

CRM emphasizes on collecting customer information and data, their

purchase information and patterns as well as involves providing the
collected information to the necessary and concerned departments. This
makes customer service an essential component of Customer Relationship
Management.

3. Marketing.
Marketing is one of the most significant component of Customer
Relationship Management and it refers to the promotional activities that are
adopted by a company in order to promote their products. The marketing
could be targeted to a particular group of people as well as to the general
crowd. Marketing involves crafting and implementing strategies in order to
sell the product.

9
4. Workflow Automation

A number of processes run simultaneously when it comes to the

management and this requires an efficient cost cutting as well as the
streamlining of all the processes. The phenomenon of doing so is known as
Workflow Automation. It not only reduces the excess expenditure but also
prevents the repetition of a particular task by different people by reducing
the work and work force that is getting wasted for avoidable jobs.

5. Business Reporting

CRM comes with a management of sales, customer care reports and

marketing. The customer care reports assist the executives of a company to
gain an insight into their daily work management and operations. This enables
one to know the precise position of the company at any particular instance. It
is ensured that the reports are accurate as well as precise.

6. Analytics

Analytics is the process of studying and representing the data in order to

observe the trends in the market. Creating graphical representations of the
data in the form of histograms, charts, figures and diagrams utilizing the
current data as well as the one generated in the past is essential to achieve a
detailed understanding and study of the trends. Analytics is an extremely
significant element of Customer Relationship Management as it allows to
make in-depth study of information that is required to calculate the progress
in the business.

10
 TYPOLOGY OF CUSTOMER RELATIONSHIP

1. Customer as Strangers

These are untapped customer who have not transacted with the firmat
all. They may find the company’s product as the next best alternative to
purchase, and it is important to ensure they do. Engaging meaningfully
those potential customers who have no previously identified preference is
the greatest challenge for brands

11
2. Customer as Acquainstances.

Here, strangers become acquainted, leading to an exchange process to

fulfill mutual need. Acquainted customers are satisfied customers in some
ways because they feel as though they are getting an industry standard
product that fulfills their needs.

3. Customer as Friends.

At this Stage, firms start gaining specific knowledge of customer’s

needs, allowing the firms to create offerings that directly address said
needs. At this point, a company can count on their customers to consistently
pay attention to the company’s offers and promotions

4.Customer as Partners.

At this stage, when the relationship has been active for a few years, a
certain level of trust is established and customers are offered customized
products. Customer become completely engaged with the brand to the
extent that they consider it representative of their beliefs and lifestyle.

12
TYPES OF CRM
In continuously growing competitive market, it is very much
important for a business to share right information to the right person at the right time,
otherwise business will lose its opportunities to sale products or services.
Customer Relationship Management software is the only solution
that can help business to communicate with prospects or customers properly. For any
CRM application, primary goal is to enable an organization to understand
customers’ need and behavior and provide better quality of service. It helps to retain
existing customers and capture new opportunities by building a strong relationship
betweenan organization and customers. CRM can analyze data and generate reports
whenever required. There are mainly three types of CRM applications −
Operational, Analytical and Collaborative to perform all these activities.

operational CRM

Types of
CRM

Collaborative CRM Analytical CRM

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1. Operational CRM
Operational CRM, generally refers to products and services that allow an
organization to take care of their customers. It provides support for various
business processes, which can include sales, marketing and service. Contact
centers, data aggregation systems and web sites are a few examples. It mainly
concentrates on three areas of business processes: the computerization,
enhancement and improvement of services. These areas are based on offering
customer support mostly. There are major automation applications, which support
the CRM systems that aid in the computerization of marketing, selling and services
process. These automation applications are:

1. Marketing Automation

It concentrates on automating the marketing processes. Marketing

campaigns management consists of the use of the actual information of a
specific customer in determining, evaluating and developing
communications aiming at customers in multilevel, multichannel or
individual environment. The campaign are usually simple and use unique
and straightforward communications.

2. Sales force automation

CRM systems are used in acquiring new customers and dealing with
existing customers. The system identifies a customer and maintains all the data.
The data can be distributed to various stages, which consist of lead generation
for more prospects.

3. Service automation

This application deals with managing. Example of the operational CRM

are the actual interactions with customers like websites, data aggregation
systems, direct sales, call centers and blogs. It enables anyone around the
organization to access customer information and gives actual views of
customer needs.

14
2. Collaborative CRM
Collaborative CRM is communication with customers and covers direct
interaction with customers including feedback and issue reporting. Interaction can
take place through web pages, email, Automated Voice Response.
Collaborative CRM greatly improves on services offered. The role of this CRM
type is to focus and improve the knowledge of the customer and utilize it in
enhancing and customizing the customers’ interactions in sustaining a strong
relationship withthem. Developing collaborative strategies uses various steps:

1. Amplifying commitment

Collaborative CRM is experienced in all business departments of the

organization like distribution, marketing, finance and sales. It is very
important to have the customer support and feedback to help them in
determining the strategies.

2. Building a valuable project team

After securing the organizational commitment, the next thing is to

develop the strategies and build an established and valuable project team.
The project team members are always experts and professionals and they
are involved in the decision-making of the company.

3. Requirement analysis

The collaborative strategy concentrates and focuses on the actual

requirements of business. It involves questionaries and surveys with high
level sales, financial managers and marketing to correct all the information
and expectations of the customers in bettering the company. This activity is
very important in developing successful CRM systems that help in business
goal achievement.

15
3. Analytical CRM
Analytical CRM addresses the analysis of customer data for a host of
different purposes. In general, it is used to design and execute targeted marketing
campaigns that optimize marketing effectiveness. Analytical CRM takes into account
product and service decision making, pricing and new product development.
This is a CRM type that maintains the analysis and operations of an
organizational back-office. Here, the sales are not done directly to the customers.
The sole aim of analytical CRM towards the organization is developing, supporting
and enhancing the decision-making in the organization. It establishes the powerful
patterns and forecasts in the clients’ information and data collected from different
operational CRM systems

Features of Analytical CRM:

 Deploying and implementing the outcome to improve the effectiveness of CRM

systems and processes, and enhance relationships and customer interaction.
 Analyzing, determining and developing comprehensive rules and methods to level
and optimize the customer relationship.
 Getting the entire important customer’s information from different
channels and sources

 The results of a CRM strategy are far reaching can either be implemented in basic
software or in a more complex software installation depending on the company’s

16
 requirements.
What is the CRM process cycle?
To understand the steps of the CRM process, you have to understand the
customer lifecycle. It’s one of the first concepts you learn as a sales rep to understand
how a person becomes a loyal customer.

The CRM cycle involves marketing, customer service, and sales activities. It starts with
outreach and customer acquisition and ideally leads to customer loyalty.

There are five key stages in the CRM cycle:

1. Reaching a potential customer

2. Customer acquisition
3. Conversion
4. Customer retention
5. Customer loyalty

The CRM process is that concept in action. It’s the tangible steps an
organization must take to help drive consumers through the cycle of learning about your brand
and ultimately becoming repeat customers.

17
 According to the customer lifecycle, we know that the first step in the CRM
process is maximizing reach with leads. In practice, reach is using your CRM
platform to generate brand awareness through targeted marketing campaigns.

Every stage in the customer lifecycle corresponds with an actionable step in the
CRM process. The key is knowing what those steps are and how to execute
them.

Process of CRM
The five steps of the CRM process are a collaborative effort between
marketing, sales, and support departments. To help you understand how each team
works together, we’ll walk through how each step works in practice. We’ll cover
not only how each part of the process can be completed with a CRM tool but also
who is responsible for each step.

1. Generate brand awareness

The first step to acquiring new customers is to introduce them to your business.
The marketing team typically takes on this task through a number of measures:

18
 A. Learning about your target audience.

Marketers will conduct research to identify their audience’s

target demographics, interests, preferred channels of communication,
what messaging they respond most to, and what theycare about.

B. Segmenting your target audience.

Audience personas are created to segment a brand’s target

audience into similar groups based on similar interests or demographics.
This helps marketers identify which types of people are most likely to
become customers and who their campaigns should target.

C. Creating marketing campaigns that speak to those target

demographics.

A/B tests and marketing automation can be used to identify

what works and what doesn’t, to create unique campaigns for unique
customer segments such as on social media or email, and to create
strategies for lead acquisition.

2. Acquire leads
Introducing your brand to a potential customer is just the beginning of the CRM
process. From there, you have to encourage them to learn more about your business
and engage with it.

Depending on how your company is structured, this lead acquisition step

could be a marketing or sales team responsibility — or both. Your marketing team,
for example, might encourage website visitors to share their email with a newsletter
signup CTA or a social media giveaway. Sales, on the other hand, could use their
CRM system to set up live chat on your site. With this feature, your team can
proactively reach out to potential customers who land on your website.

If your CRM technology comes equipped with a lead enrichment tool, like
Reach, lead acquisition is unbelievably simple. All the tool needs is a lead’s
email address to instantly reveal detailed information about the person. With
customer data, you can personalize your outreach with the lead to start the
relationship off on the right note. Not to mention, you can save tons of time by
not needing to research leads yourself.
19
3. Convert leads into customers
You’ve successfully engaged with your leads, and they’re interested. Now it’s
time to turn those leads into customers.

To do so, sales reps must first be skilled at identifying how interested leads
are and, specifically, whether they’re interested enough to make a purchase. A
CRM system is very helpful here. The historical data from past successful sales
canbe used to identify lead-qualification criteria. These criteria can be added as
“attributes” to your CRM’s lead-scoring tool to help reps identify opportunities
with the highest probability of a sale.

If leads do seem likely to make a purchase, reps must then be able to nurture
them further and build their trust enough to convert. One way to do this is for reps to
send leads case studies, white papers, and other resources that may sway their
decision.

4. Provide superior customer service

You’ve successfully converted your lead into a customer. Great! But the
CRM process doesn’t end when a customer converts. In order to grow as a
company, you need to retain customers. How do you keep that customer coming
back?
Excellent service from support.

Forty-nine percent of customers say being able to resolve their issue quickly
is the most important aspect of a good customer service experience. With CRM
software, support agents can easily access the historical customer information they
need to resolve a ticket quickly.

Fifty-seven percent of customers expect to have a choice of channels when

reaching out to customer support. CRM features allow support agents to not only
provide omnichannel support but also manage those conversations in a single, unified
view.

20
 With the right CRM, your agents have the customer information and resources
they need to resolve a customer’s issues quickly and effortlessly. This allows for a
stress-free and efficient experience for both the customer and the support agent

5. Drive upsells
When we think of a returning customer, we imagine a shopper continually
coming back to the same business to buy the products they know and love. But there
is another key way existing customers provide value — by upgrading to more
expensive products.

How do you convince customers to switch products? Personalized

recommendations via email are a great place to start. You can use your CRM to
organize customers into smart lists based on similar purchase histories. You can then
create custom email templates that send relevant product releases to entire lists of
customers at once. This way, you can be sure the promotional deals or releases you
send are reaching the people most likely to buy them.

If your business is service-based, you may find upsell opportunities

through check-in calls. Set reminders in your CRM to regularly reach out to repeat
customers to ask how they’re doing and whether there is any way you could improve
your service. Their needs may very well have changed since the last time you spoke,
and they may be ready for an upsell.

With a CRM process, the customer lifecycle no longer feels abstract. The
right CRM enables you to create a deliberate, personalized experience that naturally
drives leads through your sales pipeline.

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Importance of CRM
Customer Relationship management is the strongest and the most efficient
approach in maintaining and creating relationships with customers. Customer
relationship management is not only pure business but also ideate strong personal
bonding within people. Development of this type of bonding drives the business to
new levels of success.
Once this personal and emotional linkage is built, it is very easy for any
organization to identify the actual needs of customer and help them to serve them in
a better way. It is a belief that more the sophisticated strategies involved in
implementing the customer relationship management, the more strong and fruitful
is the business. Most of the organizations have dedicated world class tools for
maintaining CRM systems into their workplace. Some of the efficient tools used in
most of the renowned organization are Batch Book, Sales force, Buzz stream,
Sugar CRM etc.

Looking at some broader perspectives given as below we can easily

determine why a CRM System is always important for an organization.
A. A CRM system consists of a historical view and analysis of all the
acquired or to be acquired customers. This helps in reduced searching and
correlating customers and to foresee customer needs effectively and
increase business.
B. CRM contains each and every bit of details of a customer, hence it is very
easy for track a customer accordingly and can be used to determine which
customer can be profitable and which not.
C. In CRM system, customers are grouped according to different aspects
according to the type of business they do or according to physical location
and are allocated to different customer managers often called as account
managers. This helps in focusing and concentrating on each and every
customer separately.
D. A CRM system is not only used to deal with the existing customers but
is also useful in acquiring new customers. The process first starts with
identifying a customer and maintaining all the corresponding details into
the CRM system which is also called an ‘Opportunity of Business’. The

22
 Sales and Field representatives then try getting business out of these
customers by sophistically following up with them and converting them
into a winning deal. All this is very easily and efficiently done by an
integrated CRM system.

E. The strongest aspect of Customer Relationship Management is that it is

very cost-effective. The advantage of decently implemented CRM system is
that there is very less need of paper and manual work which requires lesser
staff to manage and lesser resources to deal with. The technologies used in
implementing a CRM system are also very cheap and smooth as compared
to the traditional way of business.

F. All the details in CRM system is kept centralized which is available

anytime on fingertips. This reduces the process time and increases
productivity.

G. Efficiently dealing with all the customers and providing them what they
actually need increases the customer satisfaction. This increases the
chance of getting more business which ultimately enhances turnover and
profit.

H. If the customer is satisfied they will always be loyal to you and will remain
in business forever resulting in increasing customer base and ultimately
enhancing net growth of business.

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BENEFITS OF CRM TO ORGANIZTION
There are many reasons why organizations invest in a new CRM strategy. High
customer churn, inefficient processes and unreliable reporting are just a few
examples. Professionally implemented CRM systems deliver many benefits for
sales, marketing, service and other teams.

1. Connect with Customers

The main purpose of a CRM system is to support a business in engaging its

customers. As well as individuals who purchase a product or service, ‘customer’ also
applies to partners, beneficiaries, donors, students, members and any other contacts
who do business with an organization.

Firstly, CRM systems like Microsoft Dynamics 365 help organizations better
understand their customers .Without a clear understanding of the history and current
status of each relationship, the ability of staff to exceed client expectations will be
severely restricted.

CRM creates a single truth about each relationship that is accessible from a
consistent interface wherever people work. Often, a better solution will be sought to
replace unconnected applications, spread-sheets, paper files or customer detail being
committed to memory.

2. Grow Efficiently

By better aligning people and business processes, CRM systems help

organizations achieve greater scale and grow efficiently.

Some examples of this include:

• Replace repetitive manual tasks with smart automated workflows that
complete actions and send automated emails which cuts administration and
eliminates duplication.

24
 • Avoid staff jumping between systems by managing all workflows in a
single interface. This can include service cases, contracts, projects, events
and application requests.
• Apply business rules, methodology and best practice to CRM workflows
enabling users to follow guided steps and reach successful outcomes when
handling sales leads, service issues and other business processes.
• CRM fosters a positive team culture and improves communication as individuals
share information, collaborate effectively and gain a better understanding of
other areas in your organization.
• Improved productivity through better time management as CRM prompts users
when important events occur, or if actions are missed.

3. Discover New Insights from Business Data

Centralizing customer and process data presents a new challenge to

translate this into meaningful actions. Big data in CRM is not a solution, but the
foundation for learning new insights which can be acted upon by all users and business
leaders. With all relationship and process data available via a single interface, it means
that timely, informed decisions can be made enabling organizations to operate with
increasing greater agility.

CRM helps organizations tap into these insights and differentiate their
offering with data-driven outcomes rather than an over-reliance on gut-feel
decisions. For a sales team this might mean trusted pipeline reports that are used as
the basis for reliable sales and production forecasts to predictably manage cash
flow. In a marketing scenario, teams can determine how responsive their audience
is enabling them to convert prospects, or adjust tactics to engage contacts who
aren’t responsive.

4. Do Business Anywhere

Through mobile apps, web interface and offline access, CRM technology
empowers people to get work done anywhere. Whether you are working in your
office, or on the go, you have a set of productivity tools to create, edit or

25
 collaborate on the processes and business relationships that matter to you. With
staff able connected to CRM on-demand they can immediately respond to client
requests, react to leads, and manage existing accounts. If teams cannot access
customer data, business is effectively on hold when they leave the office, or are
away from their desktop or laptop.

Mobile CRM means that everyone can connect, make updates and initiate action
on-demand when events occur. This includes:
• Creating a new service case from an email received on a mobile app

• Referencing recent contact history during a customer meeting

• Updating sales opportunity and pipeline detail when travelling from a
customer visit
• Scheduling follow up CRM activities in response received emails and meetings

Providing a great customer experience requires teamwork and the right tools to
help users engage with customers. Mobile CRM apps that are fast, easy to use,
intuitive, and fit a mobile lifestyle are rapidly adopted. Extending these solutions
into customer facing roles and processes will result in higher use of CRM and
increasingly productive staff.

5. Safeguarding Business

Control access to your important customer and business information by securely

storing data in the cloud. With advanced protection and automatic back-up, this data
is protected from unexpected events. CRM security profiles and settings enforce
controls so that teams and individual users have appropriate permissions to access
records consistent with their role. With data held in the cloud, CRM immediately
offers significantly greater protection compared to storing customer data locally in
spreadsheets, or legacy on-premise applications.

Examples of CRM security controls include:

• Restrict access for account managers to only view their own records

• Advanced hierarchy security to manage access between senior users and

subordinates

26
BENEFIT OF CRM TO CUSTOMER

 Better service
CRM collects information about customer’s buying habits, including
preferences and frequently. CRM systems allow business to offer better customer service solutions by
closely monitoring customer’s wants and needs.By using a CRM system, customer service representative
can access detailed customer information readily to adapt customer service approaches as necessary.
Customer feedback is implemented in products or services to ensure the provision of better service

1. Improved Relationships

CRM is all about merging marketing efforts with business processes to identify , pursue and
manage valuable customer relationships. CRM entails knowing and understanding customer’s
buying habits and preferences so thatan organization can position itself at the point of sale, and
about supporting customers after the sale is done.

2. Social Relationship

CRM helps build social CRM. Social CRM is the convergence of social media with
CRM strategies. It is the next frontier for organizations that want to optimize the power
of social interactions move closer to customers

27
 .
Potential Drawbacks of CRM system

Implementing a customer relationship management (CRM) solution is a great

way of making the most of your business assets. However, problems in
implementing a CRM can cause major difficulties for your business.

1. CRM costs

One of the greatest challenges to CRM implementation is cost. There are

dozens of software options available and many pricing plans that go with them.
To work out the actual costs of CRM software, make sure that you consider the
total cost of ownership including:

• software subscription or purchase fees

• premium upgrades, eg add-on marketing or reporting features
• customization
• IT resources needed
• hardware or software requirements
• staff training and up skilling
Other factors such as data migration and quality, and converting business
operations may also affect the total costs of CRM implementation. Proper
planning and careful assessment of any potentially hidden costs should help youset
a realistic budget for your CRM project.

28
2. Business culture

A lack of commitment or resistance to cultural change from people

within the company can cause major difficulties with the CRM implementation.
Customer relationships may break down and result in loss of revenue, unless
everyone in the business is committed to viewing their operations from the
customers' perspective.

3. Poor communication

To secure buy-in and make CRM work, all the relevant people in your
business must know what information you need and how to use it. Make sure to
communicate integration needs in advance if other teams need to cooperate on the
29
 implementation, eg payroll staff.
4. Lack of leadership

Weak leadership could cause problems for any CRM implementation

plan. Management should lead by example and push for customer focus on every
project. If a proposed plan isn't right for your customers, don't do it. Task your
team to come up with a better alternative.

Trying to implement CRM as a complete solution in one go is tempting, but it may

prove a risky strategy. It may be better to break your CRM project down into
manageable pieces by setting up pilot programs and short-term milestones. A pilot
may incorporate all the necessary departments and groups but is small and
flexible enough to allow adjustments along the way. Find more tips to help you
create your CRM strategy.

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Ethical Issues in CRM
1. Issues while data collection

Ethical issues originating with the collection of customer data for CRM
are related to secure collection methods and to the verification of the information.
Ethical companies ensure that sensitive information such as credit card numbers or
medical histories are collected in a secure environment and transmitted back to the
databases securely. During data collection, it is also critical to verify the identity
of the customer and the accuracy of the information being submitted. High
security for these functions is costly but ethically necessary.

2. Data storage

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 Data is only stored with the agreement of the customer. Customers must
be able to view their data and either change their data or ask for it to be changed.
Customer can withdraw from the program, and such a withdrawal causes their
data to be erased. The ethics behind these principles are that the data belongs to
the customer and the customer must be able to control his data. Many times data is
been stored by company for a longer period of time without any agreement.

3. Usage of Data

Customer data for CRM is sensitive, ethical companies ensure the data is
kept private to the maximum extent possible. To achieve this, the company must
store the data in a form or in a location not generally accessible. The data must only
be consulted when necessary for the fulfillment of a CRM task, and only those
employees who handle the data to complete the task are able to access the data.

4. Disposing of CRM Data

Since customer must be able to withdraw from the CRM program and since
their data is then erased, the company needs a procedure in place for safety
destroying customer data when it is no longer needed. An ethical company has
detailed policies and procedures for tracking and destroying data and keep accurate
records of such activities.

Personalization technology

Personalization is a new strategy adopted these days so as to maintain

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 relationship with the customers. But many times it can get too personal.

5. Customer Focus

CRM relates to maintaining relationship with customer by frequent

contacts so as to obtain their maximum data. Growing customer concern lead
companies to collection of huge data related to them making customer concern
about its secrecy.

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Marketing initiatives of CRM – CRM strategies in action

1. Cross selling
Cross selling is a strategy that involves offering complementary products
along with the ones that the customer planned to buy in the first place. Typically,
such products cost 60% lower than the target product. Cross selling entails selling
additional products that may interest the buyer by using suggestions, incentives or
product placement.

Examples:

A. McDonalds – Happy Meal

‘would you like fries with that’ is an often heard question at McDonald’s
counters, and it is an example of cross-selling because it is a call to buy an
additional product. That simple question helps the company to sell 9 million
pounds of fries every day worldwide.

34
 B. Flipkart

On the product page of laptop, it offers suggestions for laptop bags. On a

smartphone product page suggestion for cases, headphones, screen protectors,
memory cards, and so on are offered.

2. Up selling

This involves offering an upgrade or more expensive product of higher

quality and better specifications.

Examples:

A. Travel Industry:

Up selling works very effectively in the travel industry. After confirming

a booking, it is easier for a firm to convince its customers to upgrade. Describing the
benefits of upgrading and emphasizing that only a small amount of additional money
can buy travel in a better class can work

35
B. McDonald’s:

Employees of McDonald’s asking customers if they would like to go for

a ‘large’ meal is up selling

1. Customer Handling
Difficult customers are of several varieties − Angry, intimidating, impatient,
talkative, demanding, and indecisive. The challenge is to handle a situation
such that a customer is given the impression that you operate a great
organization. A few consideration in handling customers are as follows
• Be in control of yourself.
• Listen and let the customer vent.
• Show the customer you care.
• Do not blame either the customer or the company.

2. Behavior prediction
Behavior prediction is employed by marketing departments to gauge
customers’ reaction in the future. Behavior prediction allows marketers to target
specific marketing actions likely to have the most desirable effect.

Example

Flipkart:

Recommendation of similar products, if a customer is looking at a Samsung Galaxy

S3 Android handset on Flipkart the site recommends Android handsets by other
brands such as Micromax or HTC to provide the customer multiple choice.

Helps zoom in on the most popular product, suggestion such as ‘people who
viewed this product, also viewed Samsung Galaxy Note’

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37
 3. Channel optimization

 Channel optimization is an application of campaign optimization and

execution.

 Channel optimization involves using advanced techniques to increase

campaign profitability. It helps marketers determine to whom to send
offers, which offers, when to send them and which channels to use.

 The aim is improving customer targeting across multiple campaigns.

Traditional marketing campaign approaches concentrate on selecting the
best customers for each campaign. By contrast, channel optimization
involves selecting the best campaign for each customer.

1. Personalization

Customer relationship management (CRM) and personalization are

complementary concepts. The personalization approach can help bring and
retain customers, and ensure repeat business from them.
Personalization can be defined in three ways;
 Personalization at administrator level: an administrator can personalize the
portal structure for individual users by defining roles, work sets, portal
layouts and access methods.
 Personalization at user level: Users can personalize their own content
within the control limits set by the administrator.
 Automatic personalization using predictive technology: predictive
technology allows for automatic personalization in terms of user type,
browser type, device type, user location (whether inside or outside the
firewall), connection bandwidth and type of event being handled.

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2.Event-based Marketing

 Event-based marketing, also called triggerbased marketing, time-sensitive

marketing, customer-specific event or driven marketing.
 Event-based marketing focuses on being able to react to customer events
within a short time of their occurrence.
 If a customer requests information via email, a sales process starting with a
courtesy call to thank the customer for that request can be set in motion.
 Companies can trawl their transactional histories, and sales and services
records to identify exploitable connections between events and outcomes.

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Measurement of CRM- 3E
Efficiency
The measurement of CRM Efficiency Include:

1. Training
A sales team is not willing to adopt a CRM program that requires excessive
training that adversely impacts their ability to sell during an extended ramp-up
period. Further, new training program must be integrated with future
onboarding, which also affects hiring.

2. Data transparency
Departments that do not share product data are more susceptible to make
avoidable mistakes. Organization must be have a plan to evaluate the effects of
more efficient data capture between departments.
For example, a firm must know if the ability of an engineering team to add
features to a product more quickly is enhanced when it has more active
communication from the sales team about customer.

3. Increasing complexity of the sales process

It is expected that CRM systems that are carefully implemented reduce the
complexity of the sales process. However, this may not be true. A company may
experience that adding a technological CRM solution to its existing sales process
creates new protocols that change the way a sales team operates.

4. Customer satisfaction

An organization must be able to evaluate whether its customers are more

satisfied as results of the implementation of a CRM software. If so, it must
understand the reasons for the increased satisfaction and also whether this
increase in customer satisfaction demand nurturing eventually costs the company
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 money.

Effectiveness
Customer relationship can be measured by obtaining customer inputs. The
following are the two approaches to measure the effectiveness of CRM:

1. The planned Approach

This approach involves corporate initiatives to proactively seek
internal and external customer inputs. It includes methods such as customer
surveys.
2. The Event-Driven Approach
This approach requires the company to be ready to accept customer
inputs when the customers reaches out to the company. This might include
having a toll free number accessible. when the customer has concerns
regarding the firm’s product, specially monitoring and managing
complaints and gathering information there is a warranty claims are made.

Employee Changes
Employee from an integral part of an organization. Which makes it
imperative to identify the change in their behavior after the implementation of
CRM tools and techniques. Many employees tend to resist change: however, CRM
implementation results in following outcomes:

1. Increased employee motivation and satisfaction

2. Better trained and more skilled sales, marketing and customer service
personnel.
3. Improved responsiveness to customer and prospect requests.

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 CRM Evaluation

1. Basic Measures
The final stage of a CRM project
involves the evaluation of its performance. Two
sets of parameters can be measured whether the
project has been delivered on time and under
the allocated budget. The evaluation involves
the comparison of business outcomes with the
project objectives. It determines whether the
desired results have been achieved.

Quality = Customer’s Perception – Customer’s Expectation

2. Service Quality Gap

Service quality gaps refers to the difference between the expected

level of service and the service actually delivered. For example,
Customers may expect to wait for 30 minutes to see their doctor; however,
they may have to wait for more than 40 minutes.
The gap model, also known as the ‘5 gaps model’ of service
quality. Presents an important customer satisfaction framework.

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3. Customer loyalty

Customer loyalty is associated withattracting the right customers,

convincing them to buy, buy often and in larger quantities as well as adding
more people to the firm’s customer base. The following are some of the ways
by which customer loyalty can be built:
1. Keeping in touch with customers using email marketing, sending ‘thank
you’ cards and more
2. Treating the employees well so that they treat the customer well.
3. Taking measures to show that the firm cares and also remembering
customer preferences.
4. Regarding customers for choosing the firm over its competitors
5. Building the firm by truly caring about customers and finding means to
make customers happier and delighted.

To sum up, firms must build customer loyalty by treating people in the
manner in which they want to be treated.

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 WALKER LOYALTY MATRIX

The walker Loyalty Matrix adopts a scientifically proven approach to

the theory of customer loyalty. It helps understand the two dimensions of true
customer loyalty by providing a practical solution, the two dimension being
customer behavior and the attitudes that support this behavior.

The walker loyalty Matrix is constructed such that the two axes
represent the two dimensions of loyalty, that is attitude and behavior. The
four quadrants, thus formed, can be defined as follow:

1. Truly Loyal:

These customers have a strong intention of staying loyal to the

firm. They have a positive attitude towards the firm and like working.
They are very likely to increase their spending and recommend the
business to others.

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2. Accessible:

These customers have a favourable attitude with respect to the firm; however,
they do not intend to continue their association. Given the odd situation where
the attitude and intention contradict often, a very small percent of customers fall
under this category.

3 Trapped:
These customers show a strong intention of continuing business with the
firm; however, they are not very happy about it. They feel trapped in the
relationship. This is a common situation among firms who lock customer into
long-term contracts for products or services that lack a suitable substitute or
for which switching is very difficult.

4 High Risk:

As the name suggests, these customers neither have the intention to

return nor have a healthy attitude about their relationship with the firm.
Generally they are halfway through to stop being associated with the firm.
Not only will they no longer be a customer but will also talk poorly about the
firm in the market place

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 The Essence of CRM in Banking

Back in the early 1970s, the idea of CRM appeared with the first annual
surveys which were designed to evaluate the customers’ satisfaction. But today
this strategy is universally treated with regard to software applications which
automate communication with clients. The commonly-understand set of functions
include sales boosting, marketing optimization, tracking key information, and
analyzing results.

Nonetheless, such systems (including any project on CRM in banking) can

take different forms. Even paper-based history of clients’ calls is CRM if it works
and helps your business. Surely, such approaches are outdated as there are dozens
of modern products and providers which use different models of distribution.

Despite the need for CRM in banking sector, each entrepreneur defines its
desires independently. Obviously, you should look for perfect systems that fulfill your
needs. While small banks are happy with simple contacts’ databases, large enterprises
need full functionality with all departments integrated.
So, here is a decisive idea you should remember, as for now: know what your bank
needs and focus on the software which suits these demands ideally.

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The Importance of CRM in Banking
Frequently, bankers understand what CRM stands for and how it
functions. Yet, not all realize the importance of CRM in banking and don’t
integrate such systems in their businesses. It looks that your bank can be lucrative
even without CRM but don’t let confuse yourself as customer-focused products
boost everything related to the interaction process significantly. We can mark three
key utilities of CRM:

To retain potential and existing clients. It would be distressing to neglect a

customer after a strong promo campaign, wouldn’t it? CRM facilitates tracking and
remembering all leads like phone calls, emails, and other requests from users. To
control employees and set standards. While staff in banks without CRM handle
various accounting methods like Excel or even own memory, all-in-one solutions
get rid of chaos and bring everything together. Obviously, this enhances the
performance.
To collect data and consolidate it. Management tools establish unified databases
which combine essential information like contacts and orders. With CRM, it is possible
to analyze and plan the sales process more accurately.

One of the benefits of CRM in banking sector includes a kind of

guidelines for bank owners. If you start the first business and don’t know how to
interact with clients, ready packages will be suitable. In this case, you borrow the
vision of developers who rely on the best world practices and CRM standards.
Nevertheless, consulting with professional development teams is the best option
for new managers and chief executives. We suggest all-in-one services for all who
need advanced CRM in banking. We come with comprehensive analysis,
consultations, and full-stack development of custom personalized systems.

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Barriers to CRM in banking industry

1. Technology Issues

Technology may be misunderstand by employees. Lack of integration in the

present technological environment, information can be obtained via multiple
channels. It becomes difficult to integrate these channels in to a coherent system
given the presence of many companies and banks. Lack of empowerment to
frontline staff.

2. Data Issues

Fragmented data systematically collecting and organizing huge volumes of data

and to integrating it in to a central repository system is a challenging task. The
lack of skill and initiative to manage and utilize data is also an area of concern.

3. People Issues

Employees may lack the motivation to use e-CRM to its full potential. The
performance management parameters of the firm may be inadequate. Employee
may have insufficient authority for decision-making. The staff may lack training in
IT.

4. Process Issues

Change in culture: e-CRM implementation requires an organization to place its

strategy related to vision, mission, and other goals at the core of its culture.
Acceptance of change : The success of CRM also depends on how different
systems and traditional practices reasonably accept the changes required to provide
better service to customers.

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 Challenges Faced by CRM

1. Smart User:

The success of a CRM project depends first and foremost on the people
who implement it and on the manner in which they use the system. A
working CRM system that is not being used is useless. A smart CRM
system requires a smart user. Therefore the successful deployment ofa CRM
system depends on upgrading the entire sales and service organization,
including the personnel and the supporting tools.

2. Customer Focus:

Ironically, a CRM system is supposed to be based on the customer, but after

implementing a CRM system the company may lose customer focus. The
problem comes from the fact that although the system is based on the
customer, the employees need to be too. It is highly essential for the
company to put in effort to focus their employees. This canalso very
expensive.

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3. Slow Returns:

The large investment that was originally spent may not show returns for
years. This tests the patience of the company and can lead to employees and
management slacking in their efforts to improve the implementation. Many
of these problems can be resolved kept under control as long as the company
is determined to follow through with the entire process.

4. Lack of Consistency:

Clean-up records (i.e. information) and starting witha clean and

constant system are essential because data entry has some problems that
reduces the data, value of data warehouse resulting diminishing the value of
future models. Missing data and inadequately entered data are two chief
reasons causing data inadequacy. Initially, consider missing or erroneous
information. For example generating a record that contains the profession of
the clients is difficult, when there is only few visitors’ data based restraining
the data.

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eCRM
eCRM, or electronic customer
relationship management, includes performing
all CRM functions with the use of the Internet
or intranet . In other words, it involves sales,
Marketing and service strategy implemented
online to identify, attract and retain a
company’s customers.

eCRM software provides access to all interactions between the

organization and its customers, which makes it a critical tool for all types of
firms, including small and medium businesses. eCRM software provides profiles
and histories of each interaction the organization has with its customers, making it
an important tool for all small and medium businesses.

EVOLUTION OF e-CRM
The customer is King. This mantra, although used for a long time, has not
been put into practice until recently. Forget the notion of royal treatment,
customers were not even treated with dignity by most organizations.
As recently as the 1970s and 80s, the concept of customer support meant
that organizations were doing favor by answering a few questions for the customer
on the phone − after putting them on hold for an hour! Standing in line to buy
something was common and expected. Remember when the customers had to go to
the airports to buy tickets only because the airlines kept them there?Organizations
simply lost touch with the realization − that they existed because ofthese
customers.

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 FEATURES OF CRM & eCRM
CRM
Customer Relationship Management is a strategy which is customized by an
organization to manage and administrate its customers and vendors in an efficient
manner for achieving excellence in business. It is primarily entangled with
following features:

1. Customers Needs –

An organization can never assume what actually a customer needs. Hence it is

extremely important to interview a customer about all the likes and dislikes so
that the actual needs can be ascertained and prioritized. Without modulating the
actual needs it is arduous to serve the customer effectively and maintain a
long-term deal.

2. Customers Response - Customer response is the reaction by the

organization to the queries and activities of the customer. Dealing with these
queries intelligently is very important as small misunderstandings could convey
unalike perceptions. Success totally depends on the understanding and
interpreting these queries and then working out to provide the best solution.
During this situation if the supplier wins to satisfy the customer by properly
answering to his queries, he succeeds in explicating a professional and
emotional relationship with him.

3. Customer Satisfaction - Customer satisfaction is the measure of how the

needs and responses are collaborated and delivered to excel customer
expectation. In today’s competitive business marketplace, customer
satisfaction is an important performance exponent and basic differentiator of
business strategies. Hence, the more is customer satisfaction; more is the
business and the bonding with customer.

4. Customer Loyalty - Customer loyalty is the tendency of the customer to

remain in business with a particular supplier and buy the products regularly.
This is usually seen when a customer is very much satisfied by the supplier and
re-visits the organization for business deals, or when he is tended towards
rebuying a particular product or brand over times by that supplier. To continue
the customer loyalty the most important aspect an organization should focus on
52
 is customer satisfaction. Hence, customer loyalty is an influencing aspect of
CRM and is always crucial for business success.

5. Customer Retention - Customer retention is a strategic process to keep or

retain the existing customers and not letting them to diverge or defect to other
suppliers or organization for business. Usually a loyal customer is tended
towards sticking to a particular brand or product as far as his basic needs
continue to be properly fulfilled. He does not opt for taking a risk in going for a
new product. More is the possibility to retain customers the more is the
probability of net growth of business.

6. Customer Complaints

- Always there exists a challenge for suppliers to dealwith complaints raised

by customers. Normally raising a complaint indicates the act of dissatisfaction
of the customer. There can be several reasons for a customer to launch a
complaint. A genuine reason can also exist due to which the customer is
dissatisfied but sometimes complaints are launched due to some sort of
misunderstanding in analyzing and interpreting the conditions of the deal
provided by the supplier regarding any product or service. Handling these
complaints to ultimate satisfaction of the customer is substantial for any
organization and hence it is essential for them to have predefined set of
process in CRM to deal with these complaints and efficiently resolve it in no
time.

7. Customer Service

- In an organization Customer Service is the process of delivering

information and services regarding all the products and brands. Customer
satisfaction depends on quality of service provided to him by the supplier.
The organization has not only to elaborate and clarify the details ofthe
services to be provided to the customer but also to abide with the
conditions as well. If the quality and trend of service go beyond customer’s
expectation, the organization is supposed to have a good business with
customers.

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eCRM

1. customer management
It Provides access to all customer information including enquiry status and
correspondence.

2. Knowledge management:
It is centralized knowledge base that handles and shares customer information.

3. Account management:

It provide access to customer information and history, allowing sales teams and
customer service teams to function efficiently.

4. Case management

It records enquiries, escalates priority cases and alert the management of

regarding unresolved issues.

5. Back-end integration:

It Blends with other systems such as billing, inventory and logistics via relevant
customer contact points such as websites and call centers.

6. Reporting and analysis:

It includes report generation on customer behavior and business criteria

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Advantages of CRM

1. Everything you need is in one place

The management of customer relationships must be centralized to be effective.

The data that is collected must be available to all people who need it. With a
CRM solution, everyone can be automatically on the same page, since everyone
has access to the same information. This fact allows workers to be more
productive, since they can focus better on meeting the needs of current and
potential customers.

2. CRM is a solution that is capable of scalability

If a company wants to survive, it must have a growing database of customers who

appreciate the value proposition offered to them. As the number of customers
grows, it becomes more difficult to meet specific needs on a personal level
because each interaction has a particular time investment that must be made. This
software is a scalable solution that adapts to almost any budget and will only
grow as the company grows so that all needs can be met effectively.

55
3. It allows for the extraction of data in an easy way

We are not only talking about customer data, but also about specific sales reports
and other analysis that can help your company discover what is working.
Managing customer relationships allows people to discover where they are
progressing, but without the same amount of time to collect that data, creating an
environment where adjustments can be made almost instantly.

4. Access the data from anywhere

This CRM advantage has not always existed. In the past, the only way to access
CRM was to install the software on a computer. To be mobile, all you could do
was install it on a laptop. Thanks to the cloud, Internet saturation, widely
available 4G data and VPN capabilities, a secure connection to the software can
now be obtained from virtually any location and device. This allows salespeople
to remain in their position for longer, which could increase their conversion
rates.

5. A good CRM can accelerate the conversion process

When it comes to managing your sales process, especially if you opt for the
Inbound Sales methodology, it is essential that you create a sales funnel for your
sales team to follow the necessary commercial stages and processes. With an
organized methodology, you will be able to integrate the activity of each vendor
in the CRM. In addition, the commercial team will be able to manage the
development of each negotiation, the activities that have already been carried
out, and the next steps. Consequently, the conversion will be accelerated.

6. Reduce the total daily costs of your company

Since all the data is centralized, costs go down because productivity increases.
No more losing paperwork, missing files and other events in which consumers
leave, because the only way that something is not in the CRM is if it has not
been entered.

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Disadvantages of CRM

1. Everything you need is in one place

The management of customer relationships must be centralized to be effective.

The data that is collected must be available to all people who need it. With a
CRM solution, everyone can be automatically on the same page, since everyone
has access to the same information. This fact allows workers to be more
productive, since they can focus better on meeting the needs of current and
potential customers.

2. CRM is a solution that is capable of scalability

If a company wants to survive, it must have a growing database of customers who

appreciate the value proposition offered to them. As the number of customers
grows, it becomes more difficult to meet specific needs on a personal level
because each interaction has a particular time investment that must be made. This
software is a scalable solution that adapts to almost any budget and will only
grow as the company grows so that all needs can be met effectively.

57
3. It allows for the extraction of data in an easy way

We are not only talking about customer data, but also about specific sales reports
and other analysis that can help your company discover what is working.
Managing customer relationships allows people to discover where they are
progressing, but without the same amount of time to collect that data, creating an
environment where adjustments can be made almost instantly.

4. Access the data from anywhere

This CRM advantage has not always existed. In the past, the only way to access
CRM was to install the software on a computer. To be mobile, all you could do
was install it on a laptop. Thanks to the cloud, Internet saturation, widely
available 4G data and VPN capabilities, a secure connection to the software can
now be obtained from virtually any location and device. This allows salespeople
to remain in their position for longer, which could increase their conversion
rates.

5. A good CRM can accelerate the conversion process

When it comes to managing your sales process, especially if you opt for the
Inbound Sales methodology, it is essential that you create a sales funnel for your
sales team to follow the necessary commercial stages and processes. With an
organised methodology, you will be able to integrate the activity of each vendor
in the CRM. In addition, the commercial team will be able to manage the
development of each negotiation, the activities that have already been carried
out, and the next steps. Consequently, the conversion will be accelerated.

6. Reduce the total daily costs of your company

Since all the data is centralised, costs go down because productivity increases. No
more losing paperwork, missing files and other events in which consumers leave,
because the only way that something is not in the CRM is if it has not been
entered.

58
Benefits of e-CRM

Implementation of an E-CRM system enables an organization to

streamline processes and provide sales, marketing and service personnel with
better, more complete customer information. The result is that E-CRM allows
organizations to build more profitable customer relationships and decrease
operating costs.
1. Service level improvements:
Using an integrated database to deliver consistent and improved customer responses

2. Revenue growth:
Decreasing costs by focusing on retaining customers and using interactive
service tools to sell additional products

3. Productivity:
Consistent sales and service procedures to create efficient work processes

4. Customer satisfaction:
Automatic customer tracking and detection will ensure enquiries are met
and issues are managed. This will improve the customer’s overall experience in
dealing with the organization.

5. Automation:
E-CRM software helps automate campaigns
including: o Telemarketing o Telesales o Direct mail
o Lead tracking and response o Opportunity
management o Quotes and order configuration

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 Opportunities of CRM

1. Change from internal focused to External focused:

CRM software must changeover from an internally focused, sales

driven, customer data management application designated for monologue
communication, process efficiency and cost reductions, to an externally
focused, conversion driven, customer engagement application designed to
engage customers in dialogues across channels, deliver consistent and
rewarding customer experiences, and build customer relationships based inpart
on goals important to customers.

2. Customer Engagement

Since customers now initiate the conversions in their preferred online

and social channels, CRM software should alert the right business
practitioners to these conversations so they can act and engage. The
challenge here is to better separate signals from noise and significantly
improve sentiment analysis. The web has a lot of noise. CRM software
should prioritize, categorize and route the social content to sales, service or
other queues so it can be acted upon quickly by the right people.

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 3. Improved Customer Experiences

CRM software should help improve the customer experience at every

customer facing interaction. VOC tool should be installed so that customers
can tell what they want. There should also be some journey mapping design
tools integrated to existing CRM marketing sales and service processes.

4 Customer intelligence

Customers are profile in social, comments on creates a highly specific customer social
graph. Collection of online data from social media networks, web browsing patterns,
forums, communities and other social media and append social attributes to the
customer profile in the CRM system can help to improve customer segmentation,
deliver more relevant messaging, offer higher fit products and provide service that
influence loyalty.

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Different types of organization implementing e-CRM

1. Sales organizations that implement e-CRM can reduce the sales cycle and
enhance their key sales − performance parameters such as average order size,
revenue per sales representative and revenue per customer.

2. e-CRM can help marketing organizations can boost their campaign response
rates as well as marketing driven revenue. Further, it can help increase lead
generation and customer acquisition.

3. Customer service organization that use e-CRM can increase service agent
productivity and customer retention rates; at the same time, e-CRM can help
them reduce services costs, response times and time to resolve requests.

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Recent trend in CRM

63
1. Integrating data from multiple channels

The CRM solution providers are working on moving social media data to
more secure communication channel. They are also exploring how they can
integrate unstructured data coming from multiple channels such as email and
mobile smart phones.

2. Handling big data

As the data is penetrating from multiple channel with high volume, velocity and
variety, the CRM solution providers are exploring how this big data can be
managed well to be able to use effectively.

3. Shifting to cloud-based CRM

The businesses are preferring cloud-based CRM software to overcome the

problems with on premise CRM software (in which every new feature
development requires an expensive upgrade.) The cloud-based CRM also lessens
the burden of business for investing in infrastructure.

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The customers are into the practice of reading review, recommendations, and

65
judging the product or service before deciding to purchase. The businesses are
keen to employee social CRM tools in their CRM software as the social media can
bring and insight of customer preferences and behavior.

4. The mobile CRM

It is expected to be powerful. Today’s CRM solution providers are investing

a handsome amount to bring more rigor in the mobile platforms of CRM
applications. The historical and current data of the customer is so huge that the
CRM users spend more time in entering the same in the system then using it
effectively for beneficial purpose. CRM solution provider are also working on
providing simpler and easier ways of handling customer data using mobile
devices.

5. CRM software systems with wearables

It is the next big revolution in the development of CRM software systems.

Wearable are the devices worn by the consumers to track their health and fitness
information. If CRM applications are integrated with wearable computing devices,
then the businesses can get benefited by having real time information of customers
and access to their account data. The businesses can then engage with their
customers effectively and discover opportunities of selling and enhancing
customer relationships.

6. Creating Best Customer Experiences

Though life is not all segregate between black & white “movements; for
the customers and businesses it is. The customers remember business product and
services by associating with best and worst experiences. The businesses using CRM
are placing the activities related to making their customers feel good in their list of
top priorities

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 XRM is evolved CRM. There is little limitations in the word CRM
which depicts Customer Relationship Management. XRM isextreme
Relationship Management. The scope of XRM is different and larger
then thescope of CRM.

For Example, a business is managing contracts

grievances, policies, building assets, parking violation,
property taxes, etc.
The list is near to endless. This all management is
catered by XRM, a business can manage the relationship of
anything within itself.

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 Problem with eCRM Implementation

1. Limited information
The key challenge with the implementation of eCRM is that it does not
provide a holistic view of the customer. A common mistake firms make is that
they underestimate the extent to which each element of the enterprise needs to be
involved in the CRM process.

2. Dependent on front-end and back-end

CRM involves both, front-office and back-office business processes. These

processes need accurate and easily accessible data. Poor integration between the
front and back office processes and the quality of the underlying data within the
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foundation applications results in poor quality customer service and eventually,
the loss of customer loyalty.

3. Integration of company’s systems

CRM applications related to sales, marketing and technical support

functions have an equally important role to play in sustaining the entire cycle as
the back office systems and data warehouses. However, the isolated existence of
any of the above systems leads to a failure in cross-functional information
sharing, integration and business intelligence and leads to a poor customer
experie.

4. Ignorance of complaint
Problems with web-customer service centers is the largest area of online
customer complaints. This portrays that customer service centers of e-business
should manage customer complaints effectively. The lack of research on online
customer complaint management is also an eCRM problem.

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 Privacy issues in eCRM

It is reasonable for customers to have privacy concerns with organizations

who employ eCRM. It has been proven that customers’ normal life is disrupted because
personal information is known and retained by organizations. Before the advent of the
web, people could protect their privacy by refusing to provide information

Solutions for privacy issues:

1. Privacy policies
2. Informing the customer
3. Customers confidence
4. Developing customer trust
5. Using information technolog
6. Government interference

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Examples of e-CRM
Insta Banking
Leading private sector banks such as
ICICI Bank are offering the ‘insta Banking’ service
which enables customer to carry out banking
transactions anytime and anywhere. This service
can be availed through 24-hour channels such as
ATMs, internet Banking, Insta Voice Response
(IVR) Banking and Mobile Banking as well as at
the branches from 8am to 8pm.

Use of Biometrics

IndusInd Bank − The bank introduced fingerprint

banking in which customers can carry out transactions
using their fingerprints eliminating the need for
passwords.

Voice recoginition

ICICI bank introduced voice recognition

software. Using this feature, customers can carry
out phone banking transactions such as cash
transfers to registered users, bill payments to
registered vendors, recurring deposits and so on
using voice commands.

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 Touch ID

Axis Bank launched ‘Touch ID’,

which is a one touch authentication for
carrying out transactions through the bank’s
mobile app on Apple iPhone 5s and above.
The app enables customers to undertake
financial transactions such as bill payments,
mobile recharge and funds transfer using this

Further, the bank launched its app for

Apple Watch which allows customers to sync
the Axis Mobile app with their Apple watch to
check their savings account balance and view
the last five transactions and notifications.

Merchant Payments Using Sound Waves

Yes Bank and HDFC Bank have tied up

withUltraCash, whose technology allows users
to make payments through mobile phones
without the use of data or any special

UltraCash processes payments through

sound waves. The user simply needs to open
the app, enter a passcode and take the phone
near a merchant’s device.
On receiving the invoice, the user need to
enter another password and the phone
authenticates the transaction using sound

The main benefit of this technology id that it does

not require the internet to make payments,
hardware. waves.

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Taking a lead in near field communication (NFC), ICICI Bank launched a mobile payment
solution that allows customers to make payments at retail outlets without using a card.
The user needs to log on to the bank’s wallet app ‘Pockets’, select the option ‘touch & pay’
and hold the phone close the merchant terminal (Card Machine).
NFC is not commonly present in phones,especially in low-end phones.

Therefore, the bank provides a debit card that is

Contactless Payments
NFC-enabled and works using the same technology.
The main benefits of this feature is that transactions are more secured because the
device or card remains with the customer. In addition, those with mobile phones that are
NFC-enabled need not carry cards.

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Conclusion:
 From this study it can be concluded that the customer relationship
management in company is satisfactory. The company is using various CRM
practices like Customization of the product, maintaining interaction with the
customers regularly & providing good quality product etc.

 CRM is an important concept in every organization, Because the organization

can make a good communication in both ways the customer & the company.

 Company not just use CRM concept to analyze but it use for opportunities in
future like we get to know how many customers satisfied with our product &
services or how many customers are loyal with the company & also can make a
forecasting.

 To address today’s exploding service company marketplace initiatives, CRM

act as a foundation for any successful implementation.

 The concept of customer interaction and the ability to collect this information
across any channel is essential as the learning is for “who is my customer &
what is the best thing for them” is to be achieved.

 If an organization using CRM system they must have a good analyze to their
future & must maintain it every hour to make a good relationship with
customer & always try to manage their marketing.

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Data Analysis

75
Bibliography
www.myfeelback.com

www.zendesk.com

www.blog.hubspot.com

www.youtube.com

76
Reference Books

1st Edition

Laila Dias “Marketing of Financial Services”, Vipul’s Financial Markets

Series .

2nd Revised Edition

Jia Makhija “Customer Relationship Management”, Vipul’s

Management Studies Series.

77
 ANNEXURE
1. A person’s _________ are all the groups that have a direct or indirect influence on their attitudes or
behavior. *
o reference groups
o dissociative groups
o inspirational groups
o None of the above

2.In buyer decision process, percentage of potential customers in a given target market is
called___________
o marketing funnel
o company funnel
o customer funnel
o retailers funnel

3. Process of manage information about customers to maximize loyalty is said to be_______________

o company relationship management
o supplier management
o retailers management
o company relationship

4. Record which is based on business customers past purchases, sales price and volumes is classified
as_____________
o business database
o company marketing
o customer database
o databases marketing

5. Aggregate value of customer’s base is classified as__________

o shareholder value
o marketers base value
o retention value
o base value

6. Customer Relationship Management is about ___________

o all of the above
o motivating employees
o instituting the best processes
o acquiring the right customer

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7. Whole cluster of benefits when company promises to deliver through its market offering is
called_____________
o customer proposition
o value proposition
o product proposition
o brand proposition

8. Customized products and services for customers and interaction to individual customers are part
of_____________
o company relationship management
o customer relationship management
o retailers management
o supplier management

9. Third step in customer’s value analysis______________

o monitoring competitors performance
o assessing attributes importance
o assessing company performance
o Both A & C

10. Percentage or number of customers who move from one level to next level in buying decision process is
called
o loyalty rates
o shopping rates
o conversion rates
o marketing rates

11. Company’s ‘customer relationship capital’ is another name of_____________

o customer conversion
o customer retention
o dissatisfied customers
o satisfied customers

12. All costs customer expects to incur to buy any market offering is called________
o total functional cost
o total economic cost
o Option 3
o total customer cost

13. CRM technology can help in__________

o processing transactions faster
o All of the above
o designing direct marketing efforts
o developing new pricing models
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14. Customers lifetime purchases that generate net present value of future profit streams is
called___________
o customer purchases value
o customer cost incurred
o customer lifetime value
o customer relationships

15. Social class is indicated by ________variables.

o several
o single
o All of above
o None of above

80
Thank
You

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