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    CH 01 (The Nature of CRM)

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    Razbir Rayhan
    1. A CRM system is used to compile customer information to better understand how to manage relationships with customers over the long term. It consists of analysis and action dimensions. 2. The purpose of a CRM system is to enhance customer service, improve customer satisfaction, and ensure customer retention through aligning business processes with technology. 3. Key stakeholders in CRM include companies implementing it, customers, vendors, consultants, and others. Understanding customer lifetime value helps businesses determine how much to spend on acquisition and retention.

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    CH 01 (The Nature of CRM)

    Uploaded by

    Razbir Rayhan
    141 views12 pages
    1. A CRM system is used to compile customer information to better understand how to manage relationships with customers over the long term. It consists of analysis and action dimensions. 2. The purpose of a CRM system is to enhance customer service, improve customer satisfaction, and ensure customer retention through aligning business processes with technology. 3. Key stakeholders in CRM include companies implementing it, customers, vendors, consultants, and others. Understanding customer lifetime value helps businesses determine how much to spend on acquisition and retention.

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    CH 01(the Nature of CRM)

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    1. A CRM system is used to compile customer information to better understand how to manage relationships with customers over the long term. It consists of analysis and action dimensions. 2. The purpose of a CRM system is to enhance customer service, improve customer satisfaction, and ensure customer retention through aligning business processes with technology. 3. Key stakeholders in CRM include companies implementing it, customers, vendors, consultants, and others. Understanding customer lifetime value helps businesses determine how much to spend on acquisition and retention.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    141 views12 pages

    CH 01 (The Nature of CRM)

    Uploaded by

    Razbir Rayhan
    1. A CRM system is used to compile customer information to better understand how to manage relationships with customers over the long term. It consists of analysis and action dimensions. 2. The purpose of a CRM system is to enhance customer service, improve customer satisfaction, and ensure customer retention through aligning business processes with technology. 3. Key stakeholders in CRM include companies implementing it, customers, vendors, consultants, and others. Understanding customer lifetime value helps businesses determine how much to spend on acquisition and retention.

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    Chapter: 1

    The Nature of Customer Relationship


    Management
    Relationship
    Management

     The term relationship management communicates the idea that a major goal of a
    business enterprise is to engage in interactions with customers over the long-term.

     The relationship between a buyer and seller seldom ends when a sale is made.
    A Customer Relationship Management (CRM) system is a process to compile
    information that increase understanding of how to manage an organization’s
    relationships with its customers.

     CRM system consists of two dimensions: Analysis and Action.


     The purpose of CRM system is to enhance customer service, improve customer
    satisfaction and ensure customer retention by aligning business processes with
    technology integration.
    CRM Constituencies

    There are several important constituencies having an interest in CRM:


    1. Companies implementing CRM
    2. Customers and partners of those companies
    3. Vendors of CRM software
    4. CRM application service providers (ASPs)
    5. Vendors of CRM hardware and infrastructure
    6. Management consultants
    7. Others
    Types of CRM
     Life time value of relationship
    The life time value of relationship defines as the benefit to each party in an exchange
    over the length of time that interactions occur.

     Customer lifetime value


    Customer lifetime value (CLV) is the amount of value a customer contributes to your
    business over their lifetime – which starts with a new customer’s first purchase or
    contract and ends with the “moment of churn.”
    Understanding CLV can help your business answer these critical questions:

    1. How much can we comfortably spend on marketing and sales for customer
    acquisition?

    2. How much should we spend on customer service to retain an existing


    customer?

    3. Who are our most valuable customers and how can we better target this
    demographic for future sales?
    Potential Benefits of CRM Systems to the
    Organization

     A Customer Focus means that the organization is ready to view the purchasing process
    from the customer’s point of view.
     Retaining customers and establishing customer loyalty are major objectives of CRM
    approaches.
     Customer retention simply means that the firm satisfies customer and offers variety such
    that the customer comes back and repeats transactions with the same organization.
    Continued…

     Share of Customer or share of wallet means that the organization wants to please
    customer to the point that they want the organization to sell them something else.

     Cross-selling is the marketing of complementary products to existing customers.

     Up-selling is the marketing of higher value product to new or existing customers.


    Potential Costs of CRM System to the
    Organization

     Information Technology (IT) Infrastructure ( server-based system, software


    licenses and updates, firewalls for security, personal to install and maintenance
    systems, training for system users in different disciplines, etc.) is the processing
    capacity required to fulfill customer needs.

     Process Change implies an alteration in the habitual pattern for accomplishing a


    task.
    CRM Success Factors:

     Strong internal partnerships around the CRM strategy.


     Employees at all levels and all areas accurately collect information for the CRM system.
     CRM tools are customer- and employee-friendly.
     Report out only the data you use, and use the data you report.
     Don’t go high-tech when low-tech will do.
    END

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