SY-MBA(MKTG)

RSL8PE04A

Customer Relationship Management

(CRM)
(Unit-III)
Customer Services & Relationship Marketing
Planning & Implementation

-Prof. Dr. Satish Chinchorkar

PhD., BE (Mech)., MBA., [Link]., CQA., COBIT5
Content: Planning & Implementation

3.1. Steps in Planning-Building Customer Centricity, Setting CRM Objectives, Defining Data,
Requirements, Planning Desired Outputs

3.2 Relevant issues while planning the Outputs, Elements of CRM plan, CRM Strategy: The Strategy
Development Process, Customer Strategy Grid.

3.3 Implementing CRM: Pre-implementation objectives setting kick off meeting requirements-
gathering, prototyping of detailed proposal generation, development of customization

3.4 Power use beta test and data import, training, roll out and system hand off, ongoing support,
system optimization, follow up

3.5 Barriers for CRM; CRM & eCRM: Challenges, Issues & Problems in implementing CRM,
Information Technology tools in CRM, Training, Measuring CRM performance, setting CRM Metrics

3.6 People- Ascertaining & standardizing the role of service provider and role of customers, Process-
Service design & standards, People- Types of service personnel- high & low contact services, service
personal issues, language, socio-cultural barriers, etiquettes, norms values & ethics

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3.1. Steps in Planning

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3.1. Steps in Planning

1. Reach potential customers

2. Transition leads to actual customers
3. Establish a relationship and build loyalty
4. Encourage additional sales and upgrades
5. Retain customers
6. Analyze results
 Prioritize the customers

 Strategize for prospective customers

 Study market trends

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3.1. Building Customer Centricity

Building customer
centricity involves
focusing on the needs of
your customers at every
step of the business
process. This can lead to
better customer
experiences, increased
loyalty, and higher profits.

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3.1. Setting CRM Objectives

CRM is a system for managing all of your company's

interactions with current and potential customers
with the goal to improve relationships to grow your
business.
CRM Objectives can be:
 to establish and maintain a customer base

 to develop and maintain good relationships with

customers
 to increase customer loyalty

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3.1. Defining Data

CRM data is information about customers that is

stored in a customer relationship management
(CRM) system. CRM data can include contact
information, interactions, and preferences.
A CRM (customer relationship management)
database is a resource containing all client
information collected, governed, transformed, and
shared across an organization.

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3.1. Defining Data (Types)

 Identity data: Used to find a specific record

 Descriptive data: Provides more context about
a customer's interactions with the company
 Quantitative data: Uses measurable data points
to interpret how a customer has interacted with
the company
 Qualitative data: Gathered directly from a
contact, this data can include their thoughts on
the company and its customer service
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3.1. Defining Data (Usage)

 Improve customer segmentation: Helps

companies target marketing more effectively
 Analyze customer behavior: Helps companies
predict trends and tailor engagement
 Track key performance metrics: Provides a
real-time view of sales and marketing efforts
 Enhance sales, marketing, and customer
service efforts: Helps businesses manage
relationships and track leads
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3.1. Requirements (Considerations)

 Features: Whether the CRM has contact management,

sales force automation, marketing automation, and more
 Reporting and analytics: Whether the CRM has tools
to help you analyze data and make better decisions
 Flexibility: Whether the CRM can be customized to
meet your business needs
 Security: Whether the CRM meets your security and
compliance requirements
 Mobile: Whether the CRM is accessible on mobile
devices

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3.1. Planning Desired Outputs

Effective CRM implementation can drive business

outcomes such as:

 Increased market share.

 Higher rates of customer acquisition.

 Improved forecasting.

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3.2 Relevant issues while planning
the Outputs

 poor data quality

 inaccurate information
 lack of data standardization
 inadequate reporting capabilities
 insufficient data integration with other systems
 not aligning outputs with business goals
 user adoption challenges
 security concerns
 the need for customization
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3.2 Relevant issues while planning
the Outputs

 Duplicated customer records

 Missing contact information
 Outdated customer data
 Inconsistent data entry practices
 Complex or confusing reports
 Lack of real-time data updates
 Inability to track customer journey effectively
 Limited reporting capabilities for specific sales
segments
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3.2 Elements of CRM Plan

 defining clear CRM goals

 understanding your customer journey
 contact management
 marketing automation
 system integration
 collaborative features
 workflow automation
 data analysis
 choosing the right CRM system
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3.2 The Strategy Development
Process

 defining clear business goals

 analyzing customer data to identify target
audiences
 mapping out the customer journey
 choosing appropriate CRM tools
 implementing the strategy
 training the team
 continuously monitoring and adjusting based on
performance metrics to optimize CRM
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3.2 Customer Strategy Grid

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3.3 Pre-implementation Objectives
Setting

"CRM pre-implementation objectives setting" refers

to the process of defining clear goals and desired
outcomes before implementing a Customer
Relationship Management (CRM) system,
essentially laying the groundwork for a successful
deployment by identifying key areas to focus on, like
improved sales efficiency, enhanced customer
service, and better data management.

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3.3 Pre-implementation Objectives
Setting

 Business Needs Analysis: Identifying specific pain points within

customer interactions, sales processes, and marketing
campaigns to understand where a CRM can provide the most
value.
 Goal Definition: Clearly articulating measurable objectives, such
as increasing lead conversion rates, reducing customer churn, or
improving customer satisfaction scores.
 Stakeholder Alignment: Ensuring all relevant departments
(sales, marketing, customer service) are involved in defining
objectives and understand their role in the CRM implementation.
 Prioritization: Ranking objectives based on their importance and
feasibility, considering the organization's current capabilities and
budget.
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3.3 Kick-off Meeting

A CRM kick-off meeting is a meeting held before the

start of a project to establish the goals, roles, and
timeline for the project. It's also a chance to
introduce the project team and align expectations
with the client. The purpose of this meeting is
 To ensure everyone involved in the project
understands the goals and objectives
 To establish common goals and align expectations

 To set the tone for the relationship with the client

 To clarify expectations and outcomes

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3.3 Requirements-gathering

 Accounts and contacts management.

 Dashboards and reports.
 Documents management.
 Leads management.
 Opportunities/Deals management.
 Configure, Price, Quote tool.
 Sales performance management.
 Collaboration tools.

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3.3 Prototyping of detailed proposal
generation

1. The main purpose of the prototype is to develop

some of the key functionality for the customer to
examine before the rollout.
2. The prototype can clarify the customer needs by
visualization.
3. The Prototype can be demonstrated to varying
departments, each with their own agendas and ways
of viewing data.
4. All the customizations doesn’t require prototyping.
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3.3 Prototyping of detailed proposal
generation

5. Once the prototype is done and demonstrated, a formal

project proposal that states the deliverables, timelines and
final costs is within for the client. This proposal generation.
6. The amount of difficulty in the achievement of the
functionality and the issues it brings up are all on the table
before a complete implementation to all users is done.
7. The prototype can clarify the customer needs by
visualization.
8. The prototype can be demonstrated to varying
departments, each with their own agendas and ways of
viewing data.
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3.3 Development of Customization

"CRM Development of Customization" refers to the

process of tailoring a Customer Relationship
Management (CRM) system by adding or modifying
features to precisely fit the unique needs and
workflows of a specific business, allowing for a more
efficient and aligned customer interaction
management experience by customizing fields,
dashboards, automation rules, and reporting
functionalities to match the company's specific
processes.
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3.3 Development of Customization

 Tailored to specific needs: Unlike using a standard off-

the-shelf CRM, customization allows a company to fine-
tune the system to match their unique sales process,
customer data requirements, and reporting preferences.
 Improved user adoption: When a CRM system aligns
closely with how a company operates, employees are more
likely to use it effectively, leading to better data accuracy
and improved customer interactions.
 Enhanced efficiency: Customization can automate
repetitive tasks, streamline workflows, and provide quicker
access to relevant customer information, boosting overall
productivity.
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3.4 Power use beta test and data
import

 Beta testing is an opportunity for real users to use

a product in a production environment to uncover
any bugs or issues before a general release.
 Beta testing is the final round of testing before
releasing a product to a wide audience.
 You can import data to your CRM using an Import
Wizard or by selecting a file to import.
 After importing, you should review the data for
errors and discrepancies.
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3.4 Training

 CRM training is the process of teaching people

how to use customer relationship management
(CRM) software and tools. CRM helps businesses
build and maintain customer relationships. This
includes:
 Initial indoctrination: Introducing users to CRM
 Practice and feedback: Providing users with
opportunities to practice and receive feedback
 Reinforcement: Continually reinforcing CRM skills

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3.4 Roll out and system hand off

 A "CRM roll out and system hand off" refers to the

final stage of a CRM implementation process where
the new system is deployed to users within an
organization, followed by a structured transfer of
responsibility from the implementation team to the
internal team who will manage the system on an
ongoing basis, ensuring a smooth transition from
setup to regular usage.
 These phases involve deploying the system to users
and ensuring a smooth transition from
implementation to ongoing use.
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3.4 System hand off

 Super User Designation: Identifying key individuals

within each department to act as "super users" who
can provide ongoing support to colleagues and
troubleshoot minor issues.
 Performance Monitoring: Establishing metrics to track
system adoption and user engagement, allowing for
adjustments and improvements post-rollout.
 Feedback Loop: Creating a mechanism for users to
provide feedback on the system, enabling continuous
refinement and optimization.

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3.4 Ongoing Support

CRM ongoing support includes maintenance, updates, and

training to ensure your CRM system is working well and
meeting your business needs. Includes:
 Data maintenance: Regularly update and manage your
CRM data, including removing duplicates, correcting
errors, and ensuring accuracy
 Security: Protect your CRM system from cyberattacks
with security measures like encryption, firewalls, and
antivirus software
 Customization: Ensure that customizations are working
as intended and add new ones as needed
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3.4 Ongoing Support

Updates: Keep your CRM system updated to avoid

compatibility issues with other systems
Test updates before deploying them to avoid disrupting
your workflows.
Training: Provide training on best practices and process
optimization.
Provide in-app guidance and contextual support to help
users learn on the go.
Support : Provide technical support; Provide playbooks,
documentation, and peer support; Provide internal
knowledge bases and service desks.
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3.4 System Optimization

CRM system optimization is the process of improving a customer

relationship management (CRM) system to better meet business goals.
This can include improving workflows, data management, and
automation. For:
 Better customer knowledge: Understand customers better through
their data, including purchase history, preferences, and
communication channels
 Better customer retention: Anticipate customer needs and improve
communication to retain customers
 Better segmentation: Segment customers based on their needs
and preferences
 Better sales management: Use CRM to manage sales, analyze
data, and report on staff performance
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3.4 Follow up

 A follow-up refers to the communication or actions

taken after an initial interaction, such as a sales
call, email, meeting, or event.
 These actions aim to maintain or enhance
relationships, address queries, or move forward
with a business process.
 A software system that helps business owners
easily track all communications and nurture
relationships with their leads and clients.

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3.5 Barriers for CRM

 Data quality: Inaccurate, incomplete, or inconsistent

data can lead to poor decision-making and wasted
resources
 Integration: CRM systems often need to integrate with
other company systems, such as ERP tools or
ecommerce sites
 Cost: CRM systems can be expensive to implement and
maintain
 Resistance to change: Employees may be resistant to
new systems, fearing changes to their daily tasks and
routines
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3.5 Barriers for CRM

 Data security: With increasing privacy

regulations, ensuring data security in CRM
systems is a growing concern for businesses
 Inadequate training: Insufficient training can
hinder adoption, leaving sales reps feeling
unequipped to use the CRM efficiently and
effectively
 Lack of control: Lack of control and limited
customization can significantly impact your CRM
strategy and operations 34
3.5 CRM & eCRM: Challenges

When it comes to CRM (Customer Relationship

Management) and eCRM (electronic CRM), major
challenges include: data quality issues, user
adoption, choosing the right software for your needs,
cost of implementation, integrating with existing
systems, data security concerns, and ensuring
consistent data across different channels;
essentially, getting employees to effectively use the
system and manage large volumes of customer data
accurately across digital platforms.
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3.5 CRM & eCRM: Challenges

 Data quality: Inaccurate, incomplete, or inconsistent

customer data can lead to poor decision making and
ineffective marketing campaigns.
 User adoption: Employees may resist using the CRM
system if it's not user-friendly or properly integrated into
their workflow, leading to low adoption rates.
 System selection: Choosing the wrong CRM software for
your business needs can result in wasted resources and
inefficiencies.
 Cost of implementation: Implementing a CRM system can
be expensive, including software purchase, customization,
training, and ongoing maintenance costs.
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3.5 CRM & eCRM: Challenges

 Integration challenges: Integrating the CRM system

with existing business systems like accounting or
inventory management can be complex.
 Data security: Storing large amounts of customer data
online raises concerns about data breaches and privacy
violations.
 Channel consistency: Maintaining consistent customer
interactions across multiple digital channels (website,
email, social media) can be challenging. .

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3.5 Issues & Problems in
implementing CRM

 Poor user adoption

 Inaccurate or outdated data
 Integration issues
 Lack of user-friendliness
 Lack of customization
 Cost
 Limited reporting and analytics
 Poor technical support
 Limited mobile access
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3.5 Information Technology tools in
CRM

 Salesforce: A widely used CRM platform with

comprehensive features for managing customer data,
interactions, and sales processes, including marketing
automation and customer support.
 HubSpot: Strengths in integrated email marketing, sales
automation, contact management, and intuitive reporting
dashboards with live chat and ticketing capabilities.
 Pipedrive: A sales-focused CRM designed to streamline
sales processes, allowing users to manage leads, track
deals, and automate repetitive tasks with an intuitive
interface.
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3.5 Information Technology tools in
CRM

 Zoho CRM: Offers core CRM features like contact and

pipeline management, communication tracking, workflow
automation, and reporting capabilities.
 Insightly: Considered suitable for small businesses
using Google Apps, providing good solutions for project
management and sales funnel tracking.
 Freshsales: An AI-powered CRM with a user-friendly
interface, ideal for streamlining sales and improving
customer interactions.

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3.5 Information Technology tools in
CRM

 Zendesk: Known for its simple user interface, providing CRM

services like email integration, task player, and sales
engagement tools.
 Creatio CRM: Offers powerful marketing functions to boost
customer retention and lead generation with a holistic view of
customer needs.
 Keap: Well-suited for growing small businesses, providing a wide
range of automation options for sales and marketing teams.
 Oracle NetSuite CRM: A comprehensive cloud solution
integrating CRM with financials and e-commerce functionalities.
for streamlining sales and improving customer interactions.

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3.5 Measuring CRM performance

 Customer retention rate: The percentage of

customers who continue to do business with the
company over a given period
 Customer lifetime value: The total value of a
customer over their lifetime, including revenue and
cost of serving them
 Customer acquisition cost: The average cost of
acquiring a new customer
 Churn rate: The percentage of customers who have
stopped using your services or products during a
specific period
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3.5 Measuring CRM performance

 Net Promoter Score: A measure of how satisfied

customers are with your business
 Sales cycle length: The time that passes from the
first time you've connected with a potential customer
to the time you complete the transaction
 Close rate: A sales metric that tells how well your
sales department is doing
 Customer Satisfaction Score (CSAT): Provides
insights into how well customer support meets
customer expectations
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3.5 Setting CRM Metrics

 Define your goals

 Choose metrics that will help you measure your
progress towards those goals
 Make sure your goals are achievable, relevant,
and time-bound
 Identify bottlenecks in your CRM process
 Review your CRM's stage duration analysis and
stage duration by owner reports

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3.6 Ascertaining & standardizing the
role of service provider

The Role:
They act as intermediaries, connecting businesses
and individuals with the expertise and resources they
require. Here are some key aspects of their purpose:
Facilitating Efficiency: Service providers streamline
processes and operations, allowing businesses to
focus on their core functions.

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3.6 Ascertaining & standardizing the
role of service provider

The Standardization:
Standardization is the process of making your
products and services consistent and uniform across
your organization. It involves defining and following
clear specifications, guidelines, and procedures for
how you design, produce, deliver, and support your
offerings.

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3.6 Ascertaining & standardizing the
role of customers

The Role:
Any marketplace transaction requires at least three
customer roles :
(1) buying, that is selecting a product or service ;

(2) paying for it, and

(3) using or consuming it.

Thus, a customer can be a buyer, a payer, or a

user/consumer

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3.6 Ascertaining & standardizing the
role of customers

The Standardization:
Standardization in customer service is all about
creating a set of guidelines and procedures that
guarantee uniformity and quality in every customer
interaction.

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3.6 Service Design & Standards

Service design is a process that creates experiences for

customers and service providers. It involves considering the
needs of both customers and the business. Service design
standards include principles and best practices that help
create seamless experiences.

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3.6 Types of Service Personnel

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3.6 Types of Service Personnel

Customer service personnel

 Email support: Allows customers and businesses to
communicate asynchronously and have detailed
discussions
 Phone support: Customer service representatives can
resolve complex issues and provide personalized customer
service
 Social media support: Customer service representatives
respond to brand posts on social media platforms like
Facebook and Twitter
 Live chat customer service: Agents can handle many
customer inquiries without losing the "human touch" 51
3.6 Types of Service Personnel

Health and wellness experts

 Nutritionists: Promote good health for employees

 Therapists: Promote good health for employees

 Other doctors: Promote good health for

employees

Senior management personnel

 Members of a company's core management
team, excluding the Board of Directors
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3.6 Types of Service Personnel

Other service personnel

 Local personnel, who are professionals and
support staff who are domiciled in the
government's country
 Plumbers

 Delivery service personnel

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3.6 High & Low Contact Services

"High contact services" refer to services that

involve a significant level of direct, personal
interaction between a service provider and the
customer, like in-person consultations or dedicated
account managers, while "low contact services"
are those with minimal customer interaction, often
relying on automated systems and self-service
options like online portals or vending machines.

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3.6 High Contact Services

 Extensive face-to-face interaction

 Personalized attention
 Complex service needs requiring detailed
explanations
 Examples: Financial consulting, luxury car sales,
tailored healthcare plans

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3.6 Low Contact Services

 Minimal customer interaction

 Primarily automated systems
 Self-service options like online ordering or
ticketing
 Examples: Online banking, self-checkout at
grocery stores, automated bill payments

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3.6 Service Personal Issues

Handling angry customers: Customers can get

upset for many reasons, but it's important to handle
the situation appropriately.
Serving multiple customers: Serving multiple
customers at once, especially during peak hours,
can lead to longer wait times and lower customer
satisfaction.
Meeting customer expectations: Customers
expect quick and efficient resolution of inquiries, but
this is not always achieved.
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3.6 Service Personal Issues

Lack of personalization: Treating customers as

individuals with unique preferences can make them
feel more valued.
Lagging responses: Modern consumers demand
immediacy, and a lack of speed is a top customer
service frustration.
A crisis or outage: Emergencies happen, but you
can control how you handle and command the
situation.

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3.6 Service Personal Issues

Handling service outages: Poor communication

during outages can amplify customer frustration and
damage trust.
Customer refusal to cooperate: Customer support
agents will often need customers to provide
additional information to understand their problems
better.

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3.6 Language & Socio-cultural
Barriers

Language barriers:
 Difficulty understanding spoken or written
communication due to different languages or
dialects.
 Misinterpreting terminology or idioms specific to a
culture.
 Inability to translate complex concepts accurately.

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3.6 Language & Socio-cultural
Barriers

Socio-cultural barriers:
 Different social norms regarding greetings,
personal space, and directness in communication.
 Variations in decision-making processes and
expectations of service delivery.
 Unfamiliarity with cultural nuances, such as
religious practices or gender roles.

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3.6 Etiquettes, Norms Values & Ethics

Etiquette:
The outward display of polite behavior, including
things like greeting customers warmly, using
appropriate language, maintaining eye contact, and
being attentive to their needs.
Norms:
The generally accepted standards of behavior within
a specific service industry, which can vary
depending on the culture and context, like dress
code, punctuality, and communication style.
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3.6 Etiquettes, Norms Values & Ethics

Values:
The underlying principles that guide service delivery,
often including honesty, fairness, respect, empathy,
and accountability.
Ethics:
The moral compass that governs decision-making in
service situations, ensuring providers act with
integrity and avoid any actions that could be
considered dishonest or harmful to customers.
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64
 Dr. Satish Chinchorkar
[Link]@[Link]
98224 06187
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