Customer Relationship Management Customer Relationship Management ( CRM ) business initiatives and information system as part of customer focused

or customer centric strategy to improve chances for success competitive business invorenment. Definition of CRM Customer Relationship Management or CRM is more commonly known as an integrated function that supports a company in the field of marketing, sales and service, which can increase the value of customer satisfaction. With the increase in the value of customer satisfaction the company's sales figures will increase. CRM managing the full range of customer relationship involves two related objectives : 1. Provide the organization and all of its customer-facing employees with a single complete view of every customer at every touchpoint and across all channels. 2. Provide the customer with a single complete view of the company and its extended channels. CRM governs the relationship between the company and its customers so that they get maximum value from the relationship. CRM is a good strategy to keep relationships with existing customers, because it can suppress the excessive spending and unnecessary, and can attract new customers CRM uses information technology to create cross-functional enterpriise system that integrates and automates many o the customer-serving process in sals, maeketing. And customer service that interact with companys customer. Contact and account management : CRM software helps sales, marketing and service professional capture and track relevant data about every past and planned contact with prospects and customers, as well as other business and life cycle events of customers. CRM system store the data in a common customer database that integrates all customer account information and makes available throughout the company via internet, intranet, or other network links for sale, marketing, service, and other CRM applications. Sale : CRM system provides sales reps with the software tools and

company data sources they need to support and manage their sales activities, and optimize cross-selling and up-selling.

Picture of The major application cluster in customer relationship management Marketing and fulfillment : CRM system help marketing professionals accomplish direct marketimg campaigns by automating such tasks as qualifying leads for targeted marketing, and scheduling and tracking direct marketing mailings. The CRM software helps marketing professionals capture and manage prospect and customer response data in CRM database and analyze the customer business value of companys direct marketing campaigns. CRM also assists in fulfillment of prospect and customer response and request by quickly scheduling sales contacts and providing appropriate information on products and service to them , while capturing relevant information for CRM database. Customer service and support : A CRM system provide service reps with software tool and real-time access to the common customer database shared by sales and marketing proffesionals. CRM helps customer service manager create, assign, and manage request for service by customers. Call

center software routes calls to customer support agents based on their skills and authority to handle specific kinds of service request. Help desk software helps customer service reps assist customer who are having problem with a product or service by providing relevant service data and suggestion for resolving problems. Webbased-self service enables customers to access personalized support information easily at company web site, while it gives them an option to receive further assistance online or phone from customer service personel. Retention and Loyalty Programs : It costs six times more to sell to a new customer than to sell to an existing one. A typical dissatisfied customer will tell eight to ten people about his or her experience. A company can boost its profits 85% by increasing its annual customer retention by only 5%. The odds of selling a product to a new customer are 15%, whereas the odds of selling a product to an existing customer are 50%. Seventy percent of complaining customers will do business with the company again if it quickly takes care of a service problems Thats why enhancing and optimizing customer retention and loyalty is a major business strategy and primary objective of customer-relationship management. CRM systems try to help a company identify, reward, and market to its most loyal and profitable customers. CRM analytical software includes data mining tools and other analytical marketing software, while CRM databases may consist of a customer data warehouse and CRM data marts. These tools are used to identify profitable and loyal customers and direct and evaluate a companys targeted marketing and relationship marketing programs toward them. Figure 6.2 is an example of part of a proposed Web-based report format for evaluating Charles Schwab & Co.s customer retention performance.

picture of - A proposed report format for evaluating the customer-retention performance of Charles Schwab & Co. Three Phases of CRM There are three stages that occur in the CRM, : 1. Increase the number of new customers (acquire). Increase the promotion of its products or services to find new customers. Promoting excellence and value of the company compared to its competitors. A business relies on CRM software tools and database to help it acquire new customers by doingg job of contact management, sales prospecting, seling, direct marketing, and fulfillment. The goal of this CRM function is to hel customer perceive the value of superior product offered by an outstabding company. 2. Providing value added services to customers who have owned company (enchance) The aim at this stage is to provide services that are one-stop service to customers. Provide added value for products or services rendered. Web-enabled CRM account management and customer service

and supprt tools help keep customers happy by suppprting superior service from a responsive networked team of sales and service specialists and business partner. 3. Maintaining the potential customers (retain). CRM analytical software and databases help a company proactively identify and reward its most loyal and profitable customers to retain and expand their business via targeted marketing and relationship marketing programs. The value the customers percieve is of a rewarding personalized business relationship with rheir company The three stages above are interrelated, so that its application would be best if done together. But in reality, not many companies that can implement the three steps above. To that end, companies must select and focus its efforts on one stage alone. Types of CRM

1. Operational CRM Supprts customer interaction with greater convinience through a variety of channels, including phone ,fax, emal, chat, mobile decices. Synchroizes customer interactions consistenly across all

channels Makes your comapany easier to do business with

2. Analytical CRM Extracts in-depth customer history , preferences, and profotability information from your data warehouse and other database Allows you to analyze, predict, and derive customer vale and bahavior and forecast demand Lets you approach your customer with relevant information and offers that are tailored to their needs. 3. Collaborative CRM Enables easy collaboration with customers, suppliers, and partners Improves efficiency and integration throughout the supply chain Allows greater responsiveness to customer needs through sourcing of products and service outside of your enterprise 4. Portal-Based CRM Provides all ud=sers with the tools and inforamtion that fit their individual roles and prefefrences Empowers all employees to customer demands more quickly ang become truly customer-focusedprovides the capability to instantly access, link, and use all internal and external customer information. Benefits and Challees of CRM The potential businees benefits of customer relationship management are many. For example, CRM allows a businesess to identify and target it best customers- those who are the most profitable to thw business- so they can be retained as lifelong customers for greater amd more profitable servvice. It makes possible real- time cutomization and personalitaion of product and service nased on customers wants, needs, buying, habbits, life cycle, CRM can also kept track of an customers contact company, regardless of the contact point. In addition, CRM sytem can enable company to provide a consistance customer experience and supperior service and support across all the contact points a customer choose. All of these bebfits would provide strategic business value to a company ang