CUSTOMER RELATIONSHIP

MANAGEMENT
( CRM)

Presentation by
GOBIND AHOOJA
E.MBA (2nd Semester)
ILMS, GURGAON
 Situation: There is a sudden
departure of important customer
facing key account executives

• Result:
• 1. It leads to loss of key customers OR

• 2. It does not affect the Company

 CONSUMER BEHAVIOUR
• Changed dramatically last decade
• the abundance of choice
• availability of information
• entitlement ( customers asking what have you done
for me lately)
• commoditization of goods & services
• insecurity (consumer financial problems reduce
loyalty)
• time scarcity
 Consumer-
Personal & Organizational
• Marketing Concept- STP- 4 Ps
• Customer Value, Satisfaction & Retention
• Loyalty
• Loyalists, Apostles, Defectors, Terrorists,
Mercenaries, Hostages
• Consumer Decision Making View -
Economic, Passive, Cognitive, Emotional
• Relationship (Loyalty) Programmes
 Relationship Marketing
• AIM: fostering ongoing communications
• furnishing loyalty by building in extras like
upgrades
• stimulating sense of belonging by
providing an exclusive club membership
• Relationships between organizations
evolve at three different levels: economic,
social & structural
Individuals grow bigger than the
organization
• Initial Phase- Harmless
• Secondary Phase- Mutually serving, ego
satisfaction
• Final Phase- Crisis of confidence & severe
loss to both
• Departure of key account executives
impacts existing customer relationships
• What are alternatives available to Cos.?
 Strategies to retain key
customers
• Rotating employees
• Let teams handle key accounts & not individuals
• Organize informal get-togethers with key customers
• Exchange of visits by vendors & customers
• Provide good assistants to customer contact
executives
• Supervisors & Managers also to touch base with
customers more frequently
• Maintain a database of customers
• Let the separation be a planned one
• Take customers into confidence
• Let the parting be a smooth affair
 And by adopting intelligent
customer relationship management
• Benefits of CRM :
• Streamlined sales & marketing processes
• Higher sales productivity
• Added cross selling & up-selling opportunities
• Improved service, loyalty and retention
• Increased call centre efficiency
• Higher close rates
• Better profiling & targeting
• Reduced expenses
• Increased market share
• Higher overall profitability
• Marginal costing
 Effective CRM
• Define business problem
• Build marketing database- Data Mining
• Explore data
• Prepare data for modeling
• Build model
• Evaluate model
• Deploy model & results
 Conclusion
• Customer relationship management is essential to
compete effectively in today’s market place. The
more effectively you can use the information about
your customers to meet their needs the more
profitable you will be. Companies should treat a
customer relationship management solution as a
product or service and its users as internal
customers- by making it valuable, pricing
appropriately, advertising and providing after-sales
support. The route to a successful business
requires that you understand your customers and
their requirements and data mining is the essential
guide.