What is customer Relationship Management ? concept for startup.

* CRM ( Customers relationship management) :

The process includes collecting customers data analyzing this data to make decision which help to make new customers & satisfy the exiting one.

* CRM Concept :

It refers to strategy for managing  an organisation relationship & interaction with customers.

Importance of CRM -

• Help a business to keep customers 
• It help business to understand what need to do to get customers.
• Increase ROI
• Increase customers service level
• Simplify marketing process

 Goal of CRM -

Types of CRM -

1. Operational CRM - it previde support to front office business process that involve direct interaction with customers through phone, mail, fax.
2. Analytical CRM - It enables to data generated by operational CRM application understand the customers behavior & desire derive their true value to the organisation It do data mining to extract meaningful information.
3. Collaborative CRM : It allows easier collaboration with customers supplier business partner. main work is to improve the quality of service provided to the customers.

    

* ASP (Application service provider) :

It is a business providing computer based service to customers over a network such as access to a particular software application.

* Customer value management (CVM) :

Customer value is based on a customer relationship quality as experienced from both customers and markets.

value is create by product and service when they benefits customers by satisfying their needs

Managing customers value -

• Understand customers needs & behavior
• Commit toward delivering value to customers.

Goals of CVM -

To delivers superior customer value to identified customer segments to get equitable return on offered value.

* CRM Architecture : 

It can be broken down into three categories 

• Operational
• Collaborative
• Analytical

Operational -

It includes marketing and sales when a connection is made to a customers information of interaction is started automatically - customers service.

Collaborative -

These are interaction between customer and stored through telephone or net powerful tool of communication.

Analytical -

It help in product development and risk management It is on going process.

* Evaluation of CRM : 

• First trend - In this vast quantities of data is collected.
• Second trend - In this it is emergence of front office application it made easier to identify and track customers - focus on sales & marketing department.
• Third trend - we realize that customers focused marketing models is needed to maintain a competitive , advantages - focus on one to one , marketing - interaction with customers.

* Operational CRM :

It generate ideas convert them into contacts capture all required details & provide through customer life cycle.

* Sales force automation :

It help an organization to automate sales process from ideal generation to closing sales.

main purpose of sales automation is to set business standard within the organisation to acquire new customers & deal with existing customers.It include order processing, information, charging, inventory control, order tracking customer management sales forecasting.

• Lead management 
• Contact management 
• Account management
• Performance management  
• Sales forecasting 

Lead management -

Lead management is a set of methodologies system & practice designed to generate new potential business clients generally operated from marketing programs.

Contact management -

It is a software program that enable user to easily store & find contact information such as names address & telephone no.

Benefits - 

• Sales tracking
• Document management
• Scheduling of appointment & meeting

* Field force automation -

It is the capture of field sales or service information in real time way using communication tech.

Like - PC, laptop, table, phone etc

The capture data is transferred Immediately to back end system through wireless connection.    

Benefits -

1. Reduce time - avoid double entry data

2. Field force productivity

* Market segmentation :

It is the research that determines how your organization divides its customer into smaller group based on age, income personality or behavior.

It is done so that they can personalize promotion & advertisement

Advantage -

• Control
• Coverage
• Reach

Disadvantages -

• Difficult to choose segment
• Difficult to get skilled worker

* Customers service & support :

It interact with customers for their immediate benefits including components such as contact center help desk & the call management system. 

* Contact & call center operation :

Call center operate over the phone their main channel of communication they usually handle customer service technical support etc.

Types of call center -

• Inbound - Receive call
• Blended - Both incoming & outgoing 
• Outbound - Outgoing

* E- CRM :

It is the application of internet based technology such as email , website, chat room & other.

* Relationship building strategy in CRM :

• Communicate frequently
• Offer customer reward
• Hold special events
• Build two way communication 
• Enhance your customer service
• Lunch  multi program 

* Enterprise marketing automation :

It is a plant of CRM module it can also be an independent software installed by company the main function of this is to run different marketing program in org.

Component -

• Promotion 
• Event based marketing 
• Loyalty programs
• Partner management 
• Response management 

* Concept of cross - selling and up - selling : 

Cross selling - It is a act of offering customers additional items that will go well with the one they are purchasing.

Example :-  A seller suggest a customers in a shop is who is purchasing laptop might also need a carrying case or wireless mouse.

Up - selling - It is the practice of giving customers the option to buy an item that is stightly better than the one they are considering.

Example :- McDonald's cashier ask you if you would like to super size meals.

How to up - sell and cross - sell :-

• Know which one gets result 
• Your suggestion has to fit their need
• Be honest 
• Influence them by making them realize 
• Reword loyalty - thank you letter

* Risk assessment of CRM :

• Customers dissatisfaction 
• Weakness in IT and E - commerce 
• Lack of customer - oriental culture
• Weakness in the relationship with the customer
• weakness in how the project is implemented

Way to protect your data -

1. Secure your data

• Anti - virus
• Fire walls 
• Anti malware

2. Choose a trusted CRM provider.

3. Educate your employees.

4. Use password effectively. 

5. Monitor CRM activity regularly.

* Analytical CRM :

Refer to gather all the relevant information about the customers and organize it consistently. also helps the company to identify the new trend in the market.

Five S in managing -

1. Strategy - Which information is important.
2. Standard - Ensuring customers information is important.
3. System - Sufficient processing power.
4. Statistic - Turn data into understand from.
5. Smart form - employees

* Customers information database : 

Firm maintain a record of all their personal and potential customers using customers database. these data base help the firm to understand the customers.

Way customers database can improve your business -

1. Get more customers coming back.
2. Discover your ideal customers.
3. Produce happier customers.
4. Get the contact you need. 

Step to develop / create -

1. Purchase database creation software 
2. determine the type of information that will be housed in the customer database
3. Consider the possible uses for the database 
4. Organize the data field 
5. Set authorizations on each of the field 
6. Prepare report formula

Information include in database -

1. Contact name 
2. Job title 
3. Demographic info
4. Method of contact them
5. Buying history
6. Source of lead 

* Data mining :

Data mining refers to extracting  knowledge from large amount of data.

Component of data mining -

• Data base, data warehouse, other, information.
• Database or data warehouse server (Based on user's data mining request).
• Knowledge base (used to guide the search).
• Graphic user interface - Query or task.

Advantage of data mining -

• Automated prediction of trends and behavior.
• Automated discovery of previously unknown pattern.
• It can be large in larger in depth and breath.

Disadvantage of data mining -

• Privacy issue.
• Misuse of information.

* Data warehousing :

It is a collection of corporate information It occur before any data mining can take place. it is process of organizing data into one common data base.

Layer in warehouse -

1. Staging - raw data for developers.
2. Integration - to inter grate the data from users.
3. Access - getting data out for users.

Advantages -

1. More cost effective.
2. Better enterprise intelligence.
3. Enhance customers service.
4. Decreased production cost.
5. Information system re engineering.

Disadvantages -

1. Installation cost.
2. Time taking.
3. Specific skill required.
4. Complex.
5. Security issue.
6. Management acceptance. 

 * Ethics and legalities of data use.

CRM does not necessary invoice gathering new data, but also include making better use of customer information gathered as a result.

Customer privacy measures are those taken by commercial organisation to ensure that confidential customer data is not stolen or abused.

 

Ethical consideration in CRM -

1. Privacy - protection.
2. Accuracy - accurate data 
3. Property - who has the right ti use.
4. Accessibility - who can use the access banking, travelling, shopping.

* Business intelligence :  

It is a process of leveraging customers information and improve your relationship with current and target customers for enhance profitability and competitive advantages.

Application of business intelligence -

1.  Measurement - information business leads about business goals.
2. Analytics - Quantitative process builds
3. Knowledge management 
4. Collaboration - get difference area to work together
5. Reporting - strategic report  

Advantages -

• Authorize employees
• Simplify teamwork
• Convey BI to entire firm
• Examine 
• Enhance

Disadvantages -

• Cost 
• Complicity
•  Disordering
• Limited use
• Time consuming

* Collaborative CRM : 

It deals in synchronization and integration of customer interaction and channel of communication like.

phone, web, fax, email.

* CRM implementation : 

CRM implementation is a process of installing CRM Software so an organization can manage current and potential customer.

Step to see why we need CRM software -

1. Identify why your organization needs a CRM system.
2. Evaluate the quality of business procedure.
3. To create formula to assess the system. 
4. Develop a realistic budget.

* CRM project management :    

Includes -

• Project planning 
• Email marketing
• Scheduling time tracking tool
• Organizing contact

Difference between CRM and project management software (PMS) -

1. CRM - It is designed to manage customers data and relationship.
2. PMS - It is designed to project or large business goals with clear start and end dates.

Features of project management software -

1. Budget management
2. Portfolio management 
3. Milestone tracking
4. Project planning

* Employee engagement in CRM project benefits :

Benefits -

1. Increase employee satisfaction
2. Worker loyalty increase
3. Employee productivity 

Negative aspects -

1. Fear of new software 
2. Change in everyday workflow
3. Seeing no use of implementation 

How to motivate them -

1. Communication 
2. The vision 
3. Support

* CRM budget :

1. Identifying CRM costs as component of a budget.
2. Justifying the cost of a CRM investment 
3. Choosing a deployment model and its effect on how you budget 
4. The effect of feature decision on your CRM budget

* Key account management : 

It focus only on a very excursive group of segment customers.

Focus on more important exiting client.

Software -

Collect , save and analyze very detailed and precise information about client.

Up to date 

Benefits -

• Full excess
• important data
• manage
• track 
• lower risk

* How to prevent CRM implementation failure :  

• Choose the right software for your teams.
• Don't rush the implementation process.
• Provide adequate training.
• Make sure all data enter is correct. 

(V5)