Customer Relationship Management (CRM) PDF

**Customer Relationship Management (CRM)** **Introduction to CRM** - CRM is a strategic decision to invest in and develop customer relationships (Section: Introduction to CRM) - CRM is different from customer acquisition - it requires different messages, incentives, and channels (Sect...

**Customer Relationship Management (CRM)** **Introduction to CRM** - CRM is a strategic decision to invest in and develop customer relationships (Section: Introduction to CRM) - CRM is different from customer acquisition - it requires different messages, incentives, and channels (Section: Introduction to CRM) - CRM is 6 times more profitable than customer acquisition (Section: Introduction to CRM) - CRM overlaps with nurturing brand relationships and long-term business profitability (Section: Introduction to CRM) **What is CRM?** - CRM is also called customer experience management (CEM) or customer-managed relationships (CMR) (Section: What is CRM?) - CRM is a set of processes, usually linked to a database, that help an organization keep in contact with customers and manage their queries, complaints, purchases, suggestions, and post-purchase issues (Section: What is CRM?) - CRM seeks to nurture loyal customers and advocates (Section: What is CRM?) **What is Social CRM?** - Social CRM integrates social media conversations into CRM systems (Section: What is Social CRM?) - Social CRM links social media, telephone calls, emails, and online chats into a unified view of the customer (Section: What is Social CRM?) - Social CRM involves training customer service staff to help customers online (Section: What is Social CRM?) **The Power of CRM** - CRM builds a protective \"wall\" around customers, similar to how a brand does (Section: The power of CRM) - CRM enhances the customer\'s relationship with the brand and is part of the brand experience (Section: The power of CRM) - Relationships built on excellent service and occasional rewards are more enduring than those built on price discounts (Section: The power of CRM) **Company Benefits of CRM** - Boosts sales through repeat purchases and increased share-of-wallet (Section: Company benefits) - Reduces costs by identifying and resolving issues before they become major problems (Section: Company benefits) - Boosts profits by marketing more cost-effectively to existing customers (Section: Company benefits) - Creates and strengthens brand assets and customer database assets (Section: Company benefits) **Causes of CRM Failure** - Lack of customer-driven culture and poor CRM project management skills (Section: What causes CRM failure?) - Lack of motivation, training, and forgetting customer needs (Section: What causes CRM failure?) - IT and other departments hijacking the CRM process (Section: What causes CRM failure?) - Angry, impatient customers who can easily voice complaints (Section: What causes CRM failure?) **Causes of CRM Success** - Building a customer-centric culture and philosophy (Section: What causes CRM success?) - Using the \"ladder of loyalty\" to move customers from suspects to advocates (Section: The ladder of loyalty) - Implementing permission-based marketing to gain customer trust (Section: Permission-based marketing) **CRM Components** - IT architecture to integrate customer data and interactions across channels (Section: CRM (IT) architecture) - Processes for managing customer contacts, feedback, and defectors (Section: Processes) - Database and data analytics to profile customers and predict behavior (Section: Database) - Personalization and tailored offers to enhance the customer experience (Section: Personalization and tailored offers) - Human architecture - training, motivation, and aligning staff with customer-centric values (Section: Human architecture) - Credible and trustworthy marketing content and brand (Section: Credibility and trust) **CRM Creation and Maintenance** - Writing a CRM brief to define objectives, scenarios, contact strategies, and communication tools (Section: Writing a CRM brief) - Developing, testing, and rolling out the CRM system (Section: CRM system creation, development, testing and roll-out) - Ongoing CRM maintenance and measurement of customer satisfaction (Section: CRM maintenance, Costs and timescales, Measuring customer satisfaction) **Key CRM Principles** - Understand and anticipate customer needs through data and analytics - Build long-term relationships through personalized, valuable interactions - Empower and align staff to deliver an exceptional customer experience - Continuously measure, optimize, and improve the CRM system **CRM Success Factors** **Description** ------------------------------ ------------------------------------------------------------------------ **Customer-Centric Culture** An organization-wide focus on understanding and meeting customer needs **Integrated Processes** Seamless management of customer interactions across all touchpoints **Data-Driven Insights** Using analytics to profile customers and predict their behavior **Personalized Experiences** Tailoring content, offers, and communications to individual customers **Empowered Employees** Training and motivating staff to deliver exceptional customer service **Continuous Improvement** Regularly measuring and optimizing the CRM system\'s performance Customer Relationship Management (CRM) ====================================== Overview of CRM --------------- - CRM is a strategic, long-term approach to building strong customer relationships (Section 3.1) - Winning a sale is short-term, but building relationships where customers return is a long-term strategy (Section 3.11) - CRM requires a cultural shift to ensure the entire organization is focused on helping customers (Section 3.11) - CRM projects can take several years to research, develop, test, and launch (Section 3.11) Key CRM Components ------------------ ### **Data Collection** - Customer data can come from various sources: marketing, customer service, sales, etc. (Section 3.1) - Storing customer data in a database allows for building detailed customer profiles (Section 3.1) - Database can track customer preferences, issues, incentives, and buying cycles to enable \"sequence selling\" (Section 3.1) ### **Dialogue and Engagement** - CRM should facilitate two-way communication and dialogue with customers (Section 3.2) - Can enable \"trialogue\" by sharing engaged customers\' opinions, scores, ratings, and reviews with other prospects (Section 3.2) - Customers should be encouraged to provide information about their needs and preferences (Section 3.2) ### **Data Retrieval and Reporting** - Retrieving data in a useful format is crucial (e.g. lists of enquirers, customers, buying patterns) (Section 3.3) - Scale and growth of the database must be considered (Section 3.3) ### **CRM Project Management** - Requires a strong project leader to coordinate an interdisciplinary team (Section 3.4) - Team should include users, analysts, technical staff, and a project manager (Section 3.4) - Marketers should take the lead, not IT (Section 3.4) - CRM must be a customer-driven project, not technology-driven (Section 3.4) ### **CRM Planning Process** - Using the SOSTAC® framework: Situation, Objectives, Strategy (Section 3.5) - Also consider the 3Ms: Money, Minutes, Men/Women (Section 3.5) - Avoid \"scope creep\" that can delay projects and increase costs (Section 3.6) ### **CRM System Development** - Should follow a structured process with defined development stages (Section 3.7) - Prototyping is an effective approach to enable user feedback and system refinement (Section 3.7) - Marketers need to improve IT skills to better communicate with technical teams (Section 3.7) ### **CRM Maintenance** - Database is an asset that requires ongoing maintenance and management (Section 3.8) - Database manager responsibilities include data quality, security, coordination, and backup/recovery (Section 3.8) Measuring CRM Success --------------------- ### **Customer Satisfaction Metrics** - One-dimensional surveys rate satisfaction on a scale (Section 3.9) - Two-dimensional surveys also weigh the importance of factors (Section 3.9) - Three-dimensional surveys compare to competitors (Section 3.9) - Net Promoter Score (NPS) measures the likelihood to recommendation (Section 3.9) ### **Return on Investment (ROI)** - Increased customer satisfaction can drive significant sales growth (Section 3.11) - CRM should be viewed as a long-term strategy, not just short-term sales (Section 3.11) CRM Challenges -------------- - Balancing short-term sales targets vs. long-term customer relationships (Section 3.11) - Educating leadership on CRM\'s role in driving long-term growth (Section 3.11) - Shifting the organization to a customer-centric culture (Section 3.11) - Avoiding common pitfalls like scope creep and lack of training/motivation (Section 3.11) **CRM Cost Factors** **CRM Timescale Factors** ---------------------------- -------------------------------- Set-up costs Investigation time System type Design time Scope of system Programming time System size Data capture and input time Database management system Trials, piloting, testing time Maintenance program Geographic location