Part – 3 Customer Relationship Management (CRM)
Resource Person MATHISHA HEWAVITHARANA MBA (Col),BBA Sp.Mktng (Col), PPG DIP. In Mktng (UK), MCIM (UK), Chartered Marketer (UK), Practicing Marketer (SL), ACMA, CGMA CIMA (UK), DBF (IBSL), AIB (IBSL), MSLIM(SL), Head of Branches - Siyapatha Finance PLC
Chapter Contents • What is CRM • Sustainable Performance • CRM Models • Application of CRM
Relationship Management (RM) Vs Customer Relationship Management (CRM) Customer Relationship Relationship Management Management “Building, “Building, Maintaining & Maintaining & Managing Positive, Managing Positive, long term, Profiable long term, Profiable Relationships with Relationships with Stakeholders of the Customers of the Organization” Organization via Customization”
CRM ….. “Customer relationship management (CRM) is a term that refers to practices, strategies and technologies that companies use to manage and analyze customer interactions and data throughout the Customer Lifecycle with the goal of improving customer service relationships and assisting in customer retention and driving sales growth”.
CRM ….. “ Customer-relationship management ( CRM ) is an approach to manage a company's interaction with current and potential Customers. It uses Data Analysis about customers' history with a company to improve business relationships with customers, specifically focusing on Customer retention and ultimately driving Sales growth.”.
Sustainable Performance ….. “ Sustainable Performance means the harmonization of financial, environmental and social objectives in the delivery of your core business activities in order to maximize value for a considerable period By maintaining performance Consistency. ”
Transformation of Customer Orientation
Customer Perceived Value “ Customer Perceived Value is the evaluated value that a customer perceives to obtain by buying a product. It is the difference between the total obtained benefits according to the customer perception and the cost that he had to pay for that. The customer will buy the same product again only if he perceives to be getting some value out of the product ”.
Customer Perceived Value
Customer Value Analysis Customer value analysis is a crucial concept when it comes to the measuring of customer perception in relation to the goods and services sold by a company. This is a very important factor as it´s directly related to customer satisfaction.
Customer Value Analysis Identify “What Customers Do Value (WCDV)” Assess & Rank the Importance of “WCDV” Assess the Position of the Company & Competitors With regards to those “WCDV” Initiate Required Improvements Monitor Customer Value Overtime
Customer Satisfaction It is a measure of how products and services supplied by a company meet The customer expectations. Exceeding those expectations will lead to Delight the Customer.
Customer Lifetime Value (CLV) “In Marketing, customer lifetime value ( CLV or often CLTV ), lifetime customer value ( LCV ), or life- time value ( LTV ) is a prediction of the Net Return / Profits attributed to the entire future relationship with a customer. In broader concept even the total future profitability of the Customer & his related network / references will be counted under CLV.
Customer Lifetime Value (CLV) In Financial Numerical Terms CLV is “ The present value of the future cash flows attributed to the customer during his/her entire relationship with the company” .
Customer Profitability Analysis (CPA) Customer Profitability Analysis indicates the Financial Impact of CLV ” .
Customer Profitability Analysis (CPA) As a result of conducting a CPA, Organization will realize “The Most Profitable” & customers to be “Prioritized” . “THE MOST IMPORTANT 20% OF OUR CUSTOMERS DO DELIVER 80% OF OUR PROFITS & SUCCESS” Pareto theory
Customer Loyalty “Customer loyalty indicates the extent to which customers are devoted to a company’s products or services and how strong is their tendency to select one brand over the competition”. • Hard-core Loyalty • Split Loyalty • Shifting Loyalty • Switching
Customer Loyalty Ladder Customer Loyalty Ladder is a systematic way of classifying customers of an organization into five different categories depending upon the business level engagement of customers with the organization.
The Marketing Funnel visualization for understanding the process of turning Leads in to Customers. The idea is that, like a funnel, marketers cast a broad net to capture as many leads as possible, and then slowly nurture prospective customers through the purchasing decision, narrowing down these candidates in each stage of the funnel.
The Marketing Funnel
Application of CRM KNOW YOUR CUSTOMER UNIQUE SERVICE RELATIONSHIP CUSTOMER INTERACTION / CONTACT CUSTOMER SERVICE IS THE 1 ST , 2 ND & 3 RD CUSTOMER COMPLAINT HANDLING CUSTOMER LOCK-IN STRATEGIES EMPLOYEE MOTIVATION & ATTITUDE
Delivery Points of CRM BRANCHES / CENTERS STAFF AGENTS CALL CENTER PROCESSES WOM MAR COM DIGITAL APPEARANCE
Delivery Points of CRM Availability of Gender “Relevant DATA” Birth Day / Special Days Supported via a Strong “DATA Life Style BASE” Will be a “CRITICAL Married / Single SUCCESS Personal Interested Areas FACTOR” For CRM Spending Pattern Telephone Numbers
Delivery Points of CRM It is All About “PERSONAL PROFILING” the Customer and “DELIVERY OF CUSTOMIZATION in an INNOVATIVE & UNMATCHED Manner”
Technology to Empower CRM Personalized Marketing Customer Empowerment Marketing Automation Work Flow Automation Customer Service Automation Intelligent Customer Services Customer Record Keeping, Behavior Tracking
Need / Advantages of CRM To Increase Customer Retention Ratio / Customer Loyalty To Manage Competition To Gain Superior Competitive Advantage To Enhance Profitability & Efficiency To Enhance Corporate Reputation
CRM Myths CRM IS COSTLY WE DO NOT HAVE ITS SOME THING TO DO SUFFICIENT WITH IT & SOFTWARES INFORMATION CRM IS THE THIS IS ALL YOU DO IN RESPONSIBILITY OF ATTRACTING THE “MARKETING” CUSTOMER WHAT “WE NEED TO CRM IS AN ISOLATED ACHIVE” OVER “WHAT FUNCTION THEY” CUSTOMERS ARE “COMMON”
Review • What is CRM • Sustainable Performance • CRM Models • Application of CRM
Thank You ! 0773 – 29 20 29 mathihewa@yahoo.com
Recommend
More recommend
