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Effective CRM Strategies for Business Growth

This document discusses customer relationship management (CRM) frameworks and strategies. It summarizes Peppers & Rogers' CRM framework which involves identifying and differentiating customers, interacting with customers to understand their needs, customizing offerings for each customer, and focusing disproportionately on high value customers. It also discusses measuring CRM performance, developing customer loyalty through perceived value maximization and strategic customer care, and how one-to-one marketing can enhance customer retention compared to mass marketing.

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nnjha
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14 views20 pages

Effective CRM Strategies for Business Growth

This document discusses customer relationship management (CRM) frameworks and strategies. It summarizes Peppers & Rogers' CRM framework which involves identifying and differentiating customers, interacting with customers to understand their needs, customizing offerings for each customer, and focusing disproportionately on high value customers. It also discusses measuring CRM performance, developing customer loyalty through perceived value maximization and strategic customer care, and how one-to-one marketing can enhance customer retention compared to mass marketing.

Uploaded by

nnjha
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

A Project on:

Customer Relationship Management (CRM)

Introduction:
Managing Detailed Information about Customers. Enables to provide Excellent Real Time customer services. Increases Profitability. Helps corporate to fight competition. Provides value for customer

Peppers & Rogers Framework For CRM:


Identify your Prospects & Customers. Differentiate customers in terms of [Link] needs. [Link] value to your company. Interact with individual customer to improve your knowledge about their individual needs & to built stronger relationship.

Peppers & Rogers Framework For CRM (contd)


Customize products, services & messages to each customers. Reducing the rate of customer defection. Increasing the longevity of the customer relationship. Enhancing the growth potential of each customer through Share of Wallet,Cross Selling & Up- Selling.

Peppers & Rogers Framework For CRM (contd)


Making lowprofit customer more profitable or terminating them. Focusing disproportionate efforts on high value customers .

4 Categories of Customers in any Organization Portfolio


Resistance to change Good value for money at its existing price. Better value for money than competitors. Needs ,Aspiration meeting their expectation.

Market leader focus on following Goal


1. Enhancing customer Loyalty

Loyal Customers Are More Profitable : Willing to pay a premium Helps in acquiring new business Cost saving Acquisition cost goes down Increase in sales Variety of product

Strategies For Customer Loyalty Development


Customer acquisition

Customer retention Strategic customer care

Market leader focus on following Goal (cntd)


2. Maximizing returns on customer segments or customer accounts 5 Different levels of investments in customer Relationship building: Basic Marketing Reactive Marketing Accountable Marketing Proactive Marketing Partnership Marketing

Market leader focus on following Goal (cntd)


3. Creating a strong interdependence between the customer & the company.

CRM Process
1. Creation and management of data mining and warehousing Cost involved for data mining and warehousing Initial investment cost Running or Operational cost Enhancement cost Workforce Cost

CRM Process (contd)


2. Development of Appropriate organizational Structure. 3. Investments in Technology. 4. People Development.

Measuring CRM
1. Balanced Score Card a) b) c) d) e) Financial Objectives Customer Perseverance Organizational Analysis Learning Organizational Knowledge Management

Top Management

Middle Management

Front-line people

Customer

Customer Front-line people Middle Management


Top Management

Mass Marketing Vs One-to-One Marketing

Mass marketing
Average customer

One-to-One Marketing
Individual customer Customer profile Customized market offering Customized production Individualized distribution

Customer anonymity
Standard product Mass product Mass distribution Mass advertising Mass promotion One-way message

Individualized incentives
Individualized message Two-way messages Economies of Scope Share of customer Profitable customer Customer retention

Economies of scale
Share of market All customers Customer attraction

High

Customer Loyalty Gets Enhanced with Perceived Value Maximization

Perceived Value Maximization

Low Low High Customer Loyalty

High

Strategic Customer Care Customer Loyalty CRM Curve

Customer Retention
Low Customer Acquisition Low Average Lifetime Value High

Customer Retention Acquisition

Strategic Customer Care Customer Retention Strategy


High

Profitability High

Low

Low Loyalty

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