Customer relationship management and relationship marketing

This Module talk about basic of Customer relationship management and relationship marketing. Major Component, advantages, properties and example of CRM.

1. CUSTOMER RELATIONSHIP MANAGEMENT AND RELATIONSHIP MARKETING Prepared By Jitendra Patel Assistant Professor, Prestige Institute of Management and Research, Indore

2. MODULE I

3. Module I 1. CRM Definition 1.1 Prerequisite of Successful CRM 1.2 Advantages of CRM 2. Relationship Marketing 2.1 5 levels of relationship marketing 2.2 10 Critical players in rm 2.3 Relationship Marketing and the 4Ps 2.4 Properties of relationship marketing 3. Components of CRM 10/12/2020 3 Jitendra Patel, PIMR Indore

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5. CRM: The whole idea of studying, analyzing and creating new customer while trying to keep the current customers happy and satisfied is known as CRM. The core of CRM lies in collecting customer data and analyzing it to make decision that bring new customers apart from satisfying the existing ones. 10/12/2020 5 Jitendra Patel, PIMR Indore

6. CRM = Customer Relationship Management A CRM system is a business tool that allows you to manage all your customers, partners and prospects information all in one place. For example, it helps: sales teams close deals faster marketing manage campaigns and track lead generation service call centres reduce the time to resolve customer complaints 10/12/2020 6 Jitendra Patel, PIMR Indore

7. Customer Relationship Management (CRM) can streamline and automate your business processes. 10/12/2020 7 Jitendra Patel, PIMR Indore

8. To successfully undertake CRM initiatives it is essential to  : • Clearly define the management objective & strategy  • Evolve the right process around it  • Identify the right software solution for implementation  • Understand the hidden costs and hurdles  • Back it up with good training and support  While selecting the software solution for your implementation, ensure that  It can manage both your data and process  • It is easy to implement and roll out  • It is simple to use  • You understand the total cost of ownership  • You evaluate the risk exposure  10/12/2020 8 Jitendra Patel, PIMR Indore

9. Advantages Of CRM Using CRM, a business can:  • Provide better customer service  • Increase customer revenues  • Discover new customers  • Cross sell/Up Sell products more effectively  • Help sales staff close deals faster  • Make call centers more efficient  • Simplify marketing and sales processes  10/12/2020 9 Jitendra Patel, PIMR Indore

10. Relationship Marketing Relationship marketing has the aim to building mutually satisfying long term relationship with key parties in order to earn and retain their business. Relationship marketing builds strong economic, technical and social ties among the parties -KOTLER 10/12/2020 10 Jitendra Patel, PIMR Indore

11. 5 levels of R elationship M arketing Basic marketing Reactive marketing Accountable marketing Proactive marketing Partnership marketing 10/12/2020 11 Jitendra Patel, PIMR Indore

12. Basic Marketing – The salesperson sells to the final customers. This is also known as direct sales. Reactive Marketing – The sales person sells the product and encourages the customer to call for any comments or enquiries. 5 levels of relationship marketing 10/12/2020 Jitendra Patel, PIMR Indore 12

13. Accountable Marketing – The sales person calls the customers to ensure whether the product is working as per satisfaction and if there is any problem in the product. Furthermore he also asks the customer for any suggestions / feedback to improve the service / product. Thus he is taking responsibility for the sale. 10/12/2020 13 Jitendra Patel, PIMR Indore

14. Proactive marketing – The company works continuously with its large customers to help improve performance. This is especially seen in financial companies wherein the movement in the financial market induces the company to make changes regularly. However at the same time, these financial companies have to take care of their customers as well. Thus they take regular feedback from their large customers thereby developing their products accordingly. Partnership Marketing – The company works continuously with its large customers to improve its performance. 10/12/2020 14 Jitendra Patel, PIMR Indore

15. 10 Critical players in rm Supplier Distributors End users Employees Financial firms Government Media Allies Competitors General public 10/12/2020 15 Jitendra Patel, PIMR Indore

16. Relationship Marketing and the 4Ps Product More products are customized to the customers’ preferences. New products are developed and designed cooperatively with suppliers and distributors. 10/12/2020 16 Jitendra Patel, PIMR Indore

17. Price The company will set a price based on the relationship with the customer and the bundle of features and services ordered by the customer. In business-to-business marketing, there is more negotiation because products are often designed for each customer. Relationship Marketing and the 4Ps 10/12/2020 Jitendra Patel, PIMR Indore 17

18. Distribution (Place) RM favours more direct marketing to the customer, thus reducing the role of middlemen. RM favours offering alternatives to customers to choose the way they want to order, pay for, receive, install, and even repair the product. Relationship Marketing and the 4Ps 10/12/2020 Jitendra Patel, PIMR Indore 18

19. Communication (Promotion) RM favours more individual communication and dialogue with customers. RM favours more integrated marketing communications to deliver the same promise and image to the customer. RM sets up extranets with large customers to facilitate information exchange, joint planning, ordering, and payments. Relationship Marketing and the 4Ps 10/12/2020 Jitendra Patel, PIMR Indore 19

20. Properties of relationship marketing Collaboration Commitment, Dependency Trust, risk and uncertainty Power Longevity Frequency, regularity and intensity Closeness and remoteness 10/12/2020 20 Jitendra Patel, PIMR Indore

21. Ikea –  The Swedish furniture maker has a worldwide base of intensely loyal customers. When the company changed the font in their ubiquitous catalog, Ikea lovers took to the Internet to air their complaints. Rather than alienate their customers for a trivial reason, Ikea changed the font back in the next catalog. American Airlines –  The airline maintains a comprehensive frequent flyer program that rewards customer loyalty with the promise of free flights, upgrades, and discounts. Dell –  Dell computers created a special online store for high volume corporate customers. By tailoring the ordering process to the specific customer's needs, Dell was able to expedite many of the hassles corporate technology buyers face. Providing a higher level of service leads to increased loyalty. Examples 10/12/2020 21 Jitendra Patel, PIMR Indore

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23. Classification of CRM programs Loyalty program Prospecting Save or win back Cross-sell/up-sell eCRM : Customer relationship management conducted electronically 10/12/2020 23 Jitendra Patel, PIMR Indore

24. Components of CRM Customer and Product centric services Differential Marketing Mass marketing Focused marketing One-to-one marketing Customers are not born equal Sales Managment Database Marketing Marketing Management Service Management Customer Management 10/12/2020 24 Jitendra Patel, PIMR Indore

25. Components of CRM 10/12/2020 25 Jitendra Patel, PIMR Indore

26. Components of CRM 10/12/2020 26 Jitendra Patel, PIMR Indore

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33. References Alok Kumar, Chhabi Sinha and Rakesh Sharma ‘ Customer Relationship Management Concept & Application’ Biztanra , New Delhi. 2018. Antony Lawerence , Customer Relationship Management , Himalaya Publishing House, 2010. Boone and Kurtz , Contemporary Marketing, 16th edition, Cengage Learning, 2014 Mallika Srivastava ‘Customer Relationship Management ‘ Vikas Publication , Noida UP India .2016.   Philip Kotler and    Gary Armstrong  “Principles of Marketing”,   New Delhi, Prentice Hall of India, 15th Edition, 2013. Philip Kotler , Kelvin Lane, Keller, Abraham Koshi , Mitihlesh Jha , Principles of Marketing Management, South Asian Perspective, Pearson Education, 14th Edition 2011. Preact CRM, “The Insider Guide to Success with CRM”, Microsoft Partners. Sales Force, “Deciding which crm solution is right for you Part of the Crm success series”, Sales Force Sales Cloud. Shainesh,G Sneth and Jagdish N, Customer Relationship Management , MacMillan India Ltd,2005 Tech Target, Battle of CRM Tools, Search CRM, PRO+Content . 10/12/2020 33 Jitendra Patel, PIMR Indore

34. 10/12/2020 Jitendra Patel, PIMR Indore 34 Thanks