...HISTORY OF CRM MARKET 3 Major Vendors 5 Current Offerings 6 III. DEFINITIONS OF CRM 6 IV. DRIVERS FOR CRM APPLICATIONS 9 Reasons for Adopting CRM: The Business Drivers 9 Cost Goals 10 V. THE CRM INDUSTRY 11 Size of the CRM Industry 12 Vendors 13 Technology and Service 15 VI. INFORMATION TECHNOLOGIES FOR CRM 20 Key CRM Tasks 20 IT Factors of CRM Tasks 22 VII. CONSULTANTS 23 VIII. RETURN ON INVESTMENT OF IMPLEMENTATION 24 Cost and time 24 Benefits 25 ROI of CRM Projects 27 IX. PRINCIPLES OF CRM 27 X. CRM ISSUES 28 Customer Privacy 28 Technical Immaturity 30 XI. CASE STUDIES 31 Amazon.Com 31 Dell 32 Volkswagen 33 Wells Fargo 34 XII. CONCLUSIONS 36 REFERENCES 37 APPENDIX A BASIC ASSUMPTIONS OF CRM 40 APPENDIX B COMMON MYTHS OF CRM 41 APPENDIX C LIFETIME VALUE OF A CUSTOMER 44 C1. Simple Approach 45 C2. More Sophisticated Calculation 46 C3. Effect of Loyalty Programs 47 C4. Additional Factors to Consider 49 C5. The Arithmetic of Lifetime Value 49 C6. Example: Applying Lifetime Value Concepts in Banking 51 C7. Summary and Conclusions on Lifetime Value 53 APPENDIX D VENDOR’S WEB SITE ADDRESSES 55 2 Version 3-6 March 23, 2001 CUSTOMER RELATIONSHIP MANAGEMENT Paul Gray Jongbok Byun I. INTRODUCTION Over a century ago, in small-town America, before the advent of the supermarket, the mall, and the automobile, people went to their neighborhood general store to purchase goods. The proprietor and the small staff recognized the customer by name...
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...CRM is that strategy which is designed to minimize cost and maximize profit by solidifying consumer's satisfaction, advocacy, and loyalty. (CRM Magazine, Feb 19, 2010). CRM brings out profiling prospects; acknowledge their needs, building relationships, and enhanced customer service. CRM gathers the consumer's information from sales area, customer support, cross selling and upselling opportunities. CRM purposes and build customer loyalty to improve financial performance. CRM always implemented across multiple sales channels. The key components of CRM are customers, call center, marketing department, sales department, and customer support. (Turban & Volonino, 2011). The Basic idea of CRM is "treat different customers differently" according to their current or potential value to the enterprises. (Turban & Volonino, 2011, P.307). The important factors of CRM are human, process, and technology (WCECS, 2010), but different people categorize in differently. CRM drive revenue growth, productivity and customer satisfaction though it has a lot of challenges to poor user acceptance. (Oracle, 2006). References Arab, F., Selamat, H., Ibrahim, S., & Zamani M. (October 20-22, 2010), A survey of success factors for CRM, Proceedings of the World Congress on Engineering and Computer Science,(Vol II), San Francisco, USA, Retrieved from http://www.iaeng.org/publication/WCECS2010/WCECS2010_pp1121-1125.pdf CRM Magazine (Feb 19, 2010), What is CRM ? Retrieved from http://www.destinationcrm...
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...------------------------------------------------- Customer relationship management From Wikipedia, the free encyclopedia Customer relationship management (CRM) is a widely implemented model for managing a company’s interactions with customers, clients, and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical support.[1] The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients to return, and reduce the costs of marketing and client service.[2] Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments.[3] Measuring and valuing customer relationships is critical to implementing this strategy.[4] Contents [hide] * 1 Benefits of Customer Relationship Management * 2 Challenges * 2.1 Complexity * 2.2 Poor usability * 3 Fragmentation * 3.1 Business reputation * 3.2 Security, privacy and data security concerns * 4 Types/variations * 4.1 Sales force automation * 4.2 Marketing * 4.3 Customer service and support * 4.4 Appointment * 4.5 Analytics * 4.6 Integrated/collaborative * 4.7 Small business * 4.8 Social media * 4.9 Non-profit and membership-based * 5 Strategy * 6 Implementation * 6.1 Implementation...
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...Customer Relationship Management is a concept used by the organization to manage the relationship with customers, including collecting, storing and analyzing customer information. CRM supports a company to provide service to customers in real time with a relationship with customers. Based on what is known of the customer, companies can create variations of supply, services, programs, messages, and media through the system that implement CRM, the company formed a closer relationship with customers, which the company can know the needs of customers and provide a choice of an appropriate product or service with their request. CRM is useful to help management better understand the customer. This is will enhance the ability of the company in targeting customers. CRM allows the selection of marketing more effective. That is will reduce costs and simultaneously enhance the effectiveness of a campaign. CRM will ultimately help companies improve profitability through a focus on handling high-value customers. In recent years, establishing a direct relationship with customers is one key to success is good for a company. As done by the AirAsia airline. AirAsia is a low-cost airline based in Kuala Lumpur International Airport. The leading airlines in Asia was established with a dream to make everyone can fly by plane. Since 2001, AirAsia has been breaking norms smoothly travel the world and has improved its position to become the best in the world. With a route network stretching across...
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...This study about Customer Relationship Management in South Africa gives an important overview about the relationship between customers and companies nowadays in this region. The focus was a long term insurance company. Insurance are a significant part of the service sector and is revolutionizing the financial sector. The insurance companies generate total gross written premiums of 25.1 billion in 2010, a very lucrative business. In the last quarter of 2009 the South Africa economy decreased, due to this change insurance companies had to improve it customer relations and use technology tools for enhance the interaction and build a long lasting commitment with the customers. Insurance corporations are convinced that they need to generate loyal customers and CRM is an exceptional tool that helps to attain that goal. Before reviewing the results of the study, let’s address the CRM concept. CRM is a set of capabilities that helps organizations to enhance and build long lasting relationship through various processes, techniques and services. CRM is not a simple software development; it involves a technology, people and processes. For developing a CRM structure is important that all the organization be focused to a culture of customer loyalty. Market right now is increasingly competitive and the customer will stay with the company with the best service and knowledge about needs. Main characteristic of CRM are the instant response bases on customer information and the opportunity...
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...Adrian Payne & Pennie Frow A Strategic Framework for Customer Relationship Management In this article, the authors develop a conceptual framework for customer relationship management (CRM) that helps broaden the understanding of CRM and its role in enhancing customer value and, as a result, shareholder value. The authors explore definitional aspects of CRM, and they identify three alternative perspectives of CRM. The authors emphasize the need for a cross-functional, process-oriented approach that positions CRM at a strategic level. They identify five key cross-functional CRM processes: a strategy development process, a value creation process, a multichannel integration process, an information management process, and a performance assessment process. They develop a new conceptual framework based on these processes and explore the role and function of each element in the framework. The synthesis of the diverse concepts within the literature on CRM and relationship marketing into a single, process-based framework should provide deeper insight into achieving success with CRM strategy and implementation. ver the past decade, there has been an explosion of interest in customer relationship management (CRM) by both academics and executives. However, despite an increasing amount of published material, most of which is practitioner oriented, there remains a lack of agreement about what CRM is and how CRM strategy should be developed. The purpose of this article is...
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...Customer Relationship Management Holly Smith August 16, 2011 Introduction Customer acquisition and retention have become essential in a highly competitive global market where advanced technological and web-based tools and applications are used to lure new customers as the old marketing strategy of quality goods at low cost has become redundant and the focus is on customer centric marketing and product development. Customer Relationship Management (CRM) has been defined as, “a cross functional, customer-driven and technology-integrated business process management strategy that maximizes relationships” Chen and Popovich (as cited in Parsongsukan,2010, p.17). The successful implementation of a CRM strategy requires organisational transformation, changing business processes and only then can CRM implementation achieve the desired results and CRM vision. CRM implementation cannot be restricted to software and technological upgradation for enhancing customer database management. CRM is an integrated approach that requires organisation and business process transformation for effective implementation. History of CRM The evolution of CRM started from mass marketing when companies’ mass- produced goods and services believing that customers had similar needs and preferences. This trend gave way to target marketing where marketing campaigns were used to target goods and services to different strata’s of consumer segments...
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...product towards customer orienta-tion, they still need practical holistic concepts enabling efficient sales management and customer approaches. According to PEPELS reporting systems are essential in today’s sales. This incorpo-rates appropriate goal setting and documentation of achievements to monitor progress and success. He further goes saying that reports need to be aligned with customer demands/needs so information gathered and retrieved is useful providing insight in customer satisfaction, reactions to offers, personal information, current status and overall buying habits. Over time this type of reporting and monitoring has become more and more computer-aided – including ERP-systems, CRM-systems,...
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...Customer Relationship Management and Key Account Management [Name of writer] [Name of institution] Table of Contents Introduction 1 Customer Relationship Management 1 Customer Relationship Management in Business to Business 1 Customer Relationship Management in Business to Customer 2 Issues related to CRM in B2B and B2C 2 Customer Privacy 3 Technical Immaturity 4 Ownership and Accountability 4 Importance of Customer Loyalty 5 Conclusion 5 References 7 Customer Relationship Management and Key Account Management Introduction This paper intends to focus on the importance and need of customer relationship management for business organizations. The paper will focus the role of customer relationship management in business to business marketplace. In addition to this, the paper will incorporate the role of customer relationship management in business to customer marketplace. The paper will further illustrate the issues which are associated with customer relationship management in business to business marketplace. Issues related to customer relationship management in business to customer marketplace will also be included in the paper. Positive and negative impacts of relations on business dealings will also be discussed in the paper. All of these discussions will help in understanding proper role of customer relationship management in the both B2C and B2B marketplace. Customer Relationship Management CRM i.e. Customer Relationship Management...
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...European Management Journal Vol. 19, No. 5, pp. 534–542, 2001 2001 Elsevier Science Ltd. All rights reserved. 0263-2373/01 $20.00 S0263-2373(01)00067-6 Cross-Functional Issues in the Implementation of Relationship Marketing Through Customer Relationship Management LYNETTE RYALS, Cranfield University School of Management SIMON KNOX, Cranfield University School of Management There is a major change in the way companies organise themselves as firms switch from productbased to customer-based structures. A key driver of this change is the advent of Customer Relationship Management which, underpinned by information systems convergence and the development of supporting software, promises to significantly improve the implementation of Relationship Marketing principles. In this paper we explore the three main issues that can enable (or hinder) the development of Customer Relationship Management in the service sector; the organisational issues of culture and communication, management metrics and crossfunctional integration — especially between marketing and information technology. 2001 Elsevier Science Ltd. All rights reserved. Keywords: Customer relationship management, Cross-functional integration, Information technology, Relationship marketing keting debate were made by Reichheld and Sasser (1990) reporting on the customer retention work of Bain and Co. These findings indicated that a 5 per cent increase in customer retention resulted in an increase in average customer lifetime value...
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...Chapter 1 Introduction to customer relationship management This page intentionally left blank Chapter objectives By the end of this chapter, you will be aware of: 1. 2. 3. 4. 5. 6. four major perspectives on CRM: strategic, operational, analytical and collaborative several common misunderstandings about CRM a definition of CRM the six constituencies having an interest in CRM how important CRM issues vary across industries five generic models of CRM. Introduction The expression customer relationship management (CRM) has only been in use since the early 1990s. Since then there have been many attempts to define the domain of CRM, a number of which appear in Table 1.1. As a relatively immature business or organizational practice, a consensus has not yet emerged about what counts as CRM. Even the meaning of the three-letter acronym CRM is contested. For example, although most people would understand that CRM means customer relationship management, others have used the acronym to mean customer relationship marketing.1 Information technology (IT) companies have tended to use the term CRM to describe the software applications that automate the marketing, selling and service functions of businesses. This equates CRM with technology. Although the market for CRM software is now populated with many players, it started in 1993 when Tom Siebel founded Siebel Systems Inc. Use of the term CRM can be traced back to that period. Forrester, the technology research organization, estimates that...
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...2010.10.07. CRM – Customer Relationship Management Bianka Parragh, Phd Óbuda University Keleti Károly Faculty of Business and Management Institute of Enterprise Management • Approaches of Customer Relationship Management • The origins of CRM • The rise of CRM • The role of CRM • Types of CRM 1 2010.10.07. RE-INVENTING CRM In the late 1990s and early year of the 21th century, CRM was offered up as the next wave of marketing. The tools and techniques that would make traditional marketing obsolete. The automated approaches that would make customer relationships automatic and would enable the marketing organization to shell anything to anyone they chose. CRM was the single solution that would solve every marketing problem. Simply install the software, plug in the customer data and sit back and watch the profils roll in. But it wasn’t that simple. It wasn’t that easy. And, it simply didn’t work that way. Millions of dollars anp pounds and yen and Euros were spent on CRM systems, software and structures but, not enough seemed to come back. The five important things are about the book’s approach to CRM 1.Strategic, not more tactics. CRM is a business decision, made by business managers to achieve business goals. So, most of all, this approach to CRM is strategic. 2. Customers, not companies. Payne’s approach puts the company and the customer in perspective. If there is no benefits to the customer, there can be no benefit to the company. CRM is reciprocal process...
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...CRM 11- Performance measurement Important stakeholders of a company - Shareholders / Board of directors - Customers - Employees/Management An organisation must maximize the main sources of revenue, profit and growth within the context of both business and customer strategy. The three key stakeholders group are: Employee Value Employee value needs to be considered from two perspectives. #1 the value employees deliver to the organization - This is usually measured against a number of performance objectives, where employees are appraised against performance targets #2 the value the organisation delivers to the employees - Comprises the benefits the work force receives in exchange for the opportunity cost, time and labour expended in performing their job. Customers Value The value the customer receives from the organisation is defined by the perceived benefits of the offer made to the customers, which extend beyond the core product or service. These higher level benefits can come from intangible factors, such as the provision of better customer service or association with a quality brand image. The value of the organisation receives from the customer is determined by the profits obtained from the customer over the lifetime of their relationship with the organisation. Shareholder Value Shareholder value is created by achieving a favourable rate of the return on capital invested. The board of director may expect the following...
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...implementation of customer relationship management in chain of supermarkets in the United Kingdom 1. Introduction Today, more and more companies find that cultivating customer loyalty is a key factor to achieve success. Customer relationship management (CRM) focuses on the relationship between customer and company. Due to this feature, many companies are trying to establish their own CRM system for helping them to connect new customers and boost old customers’ long-term loyalty. CRM systems include operations and analysis, and relationship marketing strategy and supporting, customer-centric business processes (Buttle 2004). With the development of information technology (IT), using CRM system is more convenient. It is considered as an important strategic compulsory (Coltman 2007), with investment predicting that global costing will increase on CRM system over the future (Gartner Group 2009). From a U.S. based survey, it was found by Goodhue et al. (2002) that a CRM system had already been established or was planned by 91 percent of companies. However, according to Rigby, the application of a CRM system is not very successful (Rigby et al. 2002).The main reason is that more than half of total companies consider CRM as a simple technology solution which aims to build a bridge among marketing, sales and service (Peppers and Rogers, 1999). A successful implementation should consist of different functional departments and be based on the needs of customer, at the same time, the CRM system...
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...day, November 2012 “CUSTOMER RELATIONSHIP MANAGEMENT IN BANKS WITH REFERENCE TO CORPORATION BANK UNIVERSITY OF MUMBAI PROJECT REPORT ON “CUSTOMER RELATIONSHIP MANAGEMENT IN BANKS WITH REFERENCE TO CORPORATION BANK” T.Y.B.B&I (SEMESTER V) ACADEMIC YEAR: 2012 – 2013 SUBMITTED BY ............................ ROLL NO – ................... PROJECT GUIDE PROF. .............................................. College Name PROJECT REPORT ON “CUSTOMER RELATIONSHIP MANAGEMENT IN BANKS WITH REFERENCE TO CORPORATION BANK” SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF DEGREE OF B.COM – BANKING & INSURANCE BY ................................... ROLL NO – ............... T.Y.BBI (SEMESTER V) .................... CERTIFICATE NAAC ACCREDITED B++ This is to certify that, Mr./Miss Of T.Y.B.B.I Semester V (2011-12) has successfully completed project on Under the guidance of _________________________________________ (Signature of Project Guide) (Signature of Principal) (Signature of Coordinator) (Signature of External) DECLARATION I Mr./Miss the student of S.I.W.S N.R Swami College of Commerce & Economics, studying in T.Y. B.Com...
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