Regarding who is the customer and their retention.CRM stages and evolution

1. Masters in FMS Co-Taught By : Ms.Dimple, Assistant Professor, FMS Department NIFT-Delhi

2. What is CRM? Customer Relationship Management is a comprehensive strategy and process of acquiring, retaining and partnering with selective customers to create superior value for the company and the customer . CRM is a management approach a model that puts a customer at the core of a company processes and practices. CRM leverages cutting edge technology integrated strategic planning up-close and personal marketing techniques and Organisation development tools to build internal external relationships that increase profit margins and productivity within a company

6. Where are we? Loyalty Builder Satisfaction focussed Company “knows you” Service Differentiation based on Economic Potential Retention focussed Event reminders Pleasant Transactor Efficient Operations Ease of doing Business Lack of specific knowledge of customers Undifferentiated offerings Product based Emphasis on Revenue Minimal Segmentation Customer Centric Proactive in product / service development Voice of customer Active collaboration Learning organisation Decision making segment driven Actively grow value of customer portfolio World Class Total experience management Real time information management Precision in investments Co-ordinated front office and back-office Customer investment focus Systematically defined business rules

7. Customer Need Assessment and Acquisition Customer development Through Personalization and Customization Customer Equity Leverage through Cross Selling and Up Selling Customer Retention and Referrals for new Customers CRM Customer Life Cycle Management

9. Personal Needs Expected Service Perceived Service Service Delivery Word - of- Mouth Communications Management perceptions of Customer Expectations Service quality specifications Past Experience External Communications to Customers Service Provider Customer SERVICE QUALITY MODEL

10. Gap 1 : Not knowing what customers expect Gap 2 : Not selecting the right service design standards Gap 3 : Not delivering to Service Standards Gap 4 : Not matching Performance to Promises Gap 5 : Perceived Service and Expected Service Service Quality Gaps

11. The Key Stages of CRM Satisfaction Based State Culture Re-active Meet customer needs Respond to complaints Minimal evaluation of customer service levels Performance Based Pro-Active Evaluate customer perception Identify customer retention factors Stage Commitment Based Very Pro-Active Evaluate multiple customer needs Continuous inbound/outbound flow and feedback Continuous improvement

13. Categorising Customers….1 *You have no choice but to handle them very carefully. Will consume energy. #Think of innovate ways of getting them on your side, but the cost of acquisition must be controlled *Cultivate relationship. Spend energy Go out of your way # Think of strategies to move them away from competition Will consume disproportionately high energy * Focus on short term profitability Spend minimum energy to meet your objectives # Don’t pursue Use opportunity as it comes Short term acquisition should not affect Long term image * Very cautious decision needed Re-examine business plan & strategy. Evaluate that your loss does not become nightmare for you # Needs in-depth strategic review as acquisition alone and dissatisfaction later could be more harmful Low High Profitability Potential Low High Strategic Importance to your business Plan * Existing Customer # Potential Customers

14. Image Value Product Value Services Value Monetary Price Time cost Energy cost Psychic cost Total customer value Total customer cost Customer delivered value DETERMINANTS OF CUSTOMER ADDED VALUE

15. Gap Analysis Grid Attributes that need attention - area where priorities should be focused Low Priority Current company strength Unnecessary strengths - possible overskill Low High High Low IMPORTANCE SATISFACTION

16. CRM Programmes

20. Sample measurements for the balanced scorecard Financial Measures Price Premium Volume increases Value of customer referrals Value of Cross sales Long-term Value of Customer Customer Perspective Service Perceptions Service Expectations Perceived Value Behavioral intentions % Loyalty % intent to switch # Customer referrals # Cross sales # of Defections Operational Perspective Right First Time (% hits) Right on Time (% hits) Responsiveness (% on time) Transaction Time ( hours, days) Innovation and Learning Perspective Goals Measures

22. Kindly Remember Customer Satisfaction is A Moving Target