SLIDE 1
Part – 3 Customer Relationship Management (CRM)
SLIDE 2 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
Resource Person
SLIDE 3 Chapter Contents
- What is CRM
- Sustainable Performance
- CRM Models
- Application of CRM
SLIDE 4
Relationship Management (RM) Vs Customer Relationship Management (CRM)
Relationship Management “Building, Maintaining & Managing Positive, long term, Profiable Relationships with Stakeholders of the Organization” Customer Relationship Management “Building, Maintaining & Managing Positive, long term, Profiable Relationships with Customers of the Organization via Customization”
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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”.
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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.”.
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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. ”
SLIDE 8
Transformation of Customer Orientation
SLIDE 9 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
- nly if he perceives to be getting some
value out of the product ”.
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Customer Perceived Value
SLIDE 11
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.
SLIDE 12 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
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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.
SLIDE 14 Customer Lifetime Value (CLV)
“In Marketing, customer lifetime value (CLV or
- ften 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
- f the Customer & his related network / references
will be counted under CLV.
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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”.
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Customer Profitability Analysis (CPA)
Customer Profitability Analysis indicates the Financial Impact of CLV”.
SLIDE 17 Customer Profitability Analysis (CPA)
As a result of conducting a CPA, Organization will realize “The Most Profitable” & customers to be “Prioritized” .
Pareto theory
“THE MOST IMPORTANT 20% OF OUR CUSTOMERS DO DELIVER 80% OF OUR PROFITS & SUCCESS”
SLIDE 18 Customer Loyalty
- Hard-core Loyalty
- Split Loyalty
- Shifting Loyalty
- Switching
“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”.
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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.
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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.
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The Marketing Funnel
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Application of CRM
CUSTOMER COMPLAINT HANDLING CUSTOMER INTERACTION / CONTACT KNOW YOUR CUSTOMER CUSTOMER SERVICE IS THE 1ST , 2ND & 3RD CUSTOMER LOCK-IN STRATEGIES EMPLOYEE MOTIVATION & ATTITUDE UNIQUE SERVICE RELATIONSHIP
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Delivery Points of CRM
STAFF AGENTS PROCESSES CALL CENTER DIGITAL APPEARANCE BRANCHES / CENTERS MAR COM WOM
SLIDE 24 Delivery Points of CRM
Availability of “Relevant DATA” Supported via a Strong “DATA BASE” Will be a “CRITICAL SUCCESS FACTOR” For CRM
Telephone Numbers
Birth Day / Special Days Personal Interested Areas Life Style Married / Single Gender Spending Pattern
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Delivery Points of CRM
It is All About “PERSONAL PROFILING” the Customer and “DELIVERY OF CUSTOMIZATION in an INNOVATIVE & UNMATCHED Manner”
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Technology to Empower CRM
Personalized Marketing Customer Empowerment Marketing Automation Work Flow Automation Customer Service Automation Intelligent Customer Services Customer Record Keeping, Behavior Tracking
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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
SLIDE 28 CRM Myths
CRM IS COSTLY ITS SOME THING TO DO WITH IT & SOFTWARES WE DO NOT HAVE SUFFICIENT INFORMATION THIS IS ALL YOU DO IN ATTRACTING THE CUSTOMER CRM IS THE RESPONSIBILITY OF “MARKETING” WHAT “WE NEED TO ACHIVE” OVER “WHAT THEY” CUSTOMERS ARE “COMMON” CRM IS AN ISOLATED FUNCTION
SLIDE 29 Review
- What is CRM
- Sustainable Performance
- CRM Models
- Application of CRM
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Thank You ! 0773 – 29 20 29 mathihewa@yahoo.com
