CRM and CB CRM and CB u There

CRM and CB

CRM and CB u There are three ways to increase the profitability • Acquire more customers • Optimize the value from existing customers • Retain the right customers longer u u Of these three choices above, acquiring new customers is the most expensive affair and retaining the existing customer is the most economical Before we understand CRM, we should know the concepts of “life time value of customer” and “consumer touch points”

CRM While organizations should continue looking for customers new customers, they should also know it is worth a significant investment to keep them. CRM is the way to it. u With CRM suppliers generate loyalty, this in turn translates in to additional business at increasingly higher margins. u

Evolution of CRM Mass marketing u Target marketing u CRM u

Types of CRM Win back or save u Prospecting u Loyalty u Cross selling / upselling u

u u CRM is a multifaceted strategy that helps companies understand, anticipate and manage customer needs. CRM comprises the acquisition and deployment of knowledge about customers to enable a company to sell more of their product or services more efficiently Major thrust of CRM involves segmenting the customers on their value and offering appropriate differentiated services for each of these levels CRM ensures that individual customer needs are profitably satisfied at the right time in the right channel with right offer

The CRM begins with u In-depth analysis of customer behavior and attributes to achieve the complete knowledge of the customers, their habits and desires, and their needs. u Then applying the knowledge to the formulation of marketing campaigns and strategies

The CRM cycle An assessment phase u A planning phase u An execution phase u

Benefits of CRM With CRM practice, both suppliers and customers win u Prevents overspending on low value customers and under spending on high value customers u Improves customer retention u Inoculates customers from competition u Improves marketing return on investment u

u u u Customers get the best offer to meet their needs at the right time Customers get more appropriate mix of marketing message balanced with information Offers are made based on understanding customer profitability Products are packed according customer purchase patterns Service channels are customized to customer needs Sales and point of contact staff have detailed information about customer value, needs and attitude

Implementation of CRM u Strategy • Channel, segmentation, pricing, branding and advertising Segmentation u Technology u Process u organization u

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