Customer Relationship Management
(CRM)
DR. Tarek Diab
Salma Elsayed
CONTENTS
▪ What is CRM “Refresh your mind”
▪ CRM Examples
▪ Face – to – face CRM
▪ Benefits of CRM “Refresh your mind”
▪ CRM adoption curve
▪ CRM strategic framework (Five key cross-functional CRM processes)
▪ From Product focused to Customer Centric
▪ The strategy development process
1
What is CRM?
“Refresh your mind”
What is CRM?
▪ CRM is a strategic approach concerned with creating improved shareholder value through the development of
appropriate relationships with key customers and customer segments.
▪ CRM unites the potential of IT and relationship marketing strategies to deliver profitable, long-term relationships.
▪ Importantly, CRM provides enhanced opportunities to use data and information both to understand customers and
implement relationship marketing strategies better. This requires a cross-functional integration of people,
operations, processes and marketing capabilities that is enabled through information, technology and applications.
Relationship marketing , CRM and customer management – a hierarchy
Strategic management of relationships
Relationship with all relevant stakeholders
Marketing
Strategic management of relationships
with customers involving appropriate Customer Relationship
use of technology Management
Implementation and tactical
Customer
management of customer
Management
interactions
2
CRM Examples
CRM Examples
Phone calls, emails, mobile phone text messages services:
➢Having access to customers contact details and their service or purchase preferences through databases can enable
organizations to alert customers to new, similar or alternative services or products.
➢Illustration: When tickets are purchased online via [Link], the website retains the customers details and
their purchase history. The website regularly send emails to previous customers to inform them of similar upcoming
events or special discounts. This helps to ensure that customers will continue to purchase tickets from
[Link] in the future.
CRM Examples
Cookies:
➢A “cookie” is a parcel of text sent by a server to a web browser and then sent back unchanged by the browser each
time it accesses that server. HTTP cookies are used for authenticating, tracking, and maintaining specific
information about users, such as site preferences and the contents of their electronic shopping carts.
➢Illustration: The online store, Amazon, uses “cookies” to provide a personalized service for its customers. Amazon
requires customers to register with the service when they purchase items. When registered customers log in to
Amazon at a later time, they are ‘greeted’ with a welcome message which uses their name (for e.g. “Hello John”). In
addition, their previous purchases are highlighted and a list of similar items that the customer may wish to purchase
are also highlighted.
CRM Examples
CRM software- “Front office” solutions :
➢Many call centers use CRM software to store all of their customer's details. When a customer calls, the system can
be used to retrieve and store information relevant to the customer. By serving the customer quickly and efficiently,
and also keeping all information on a customer in one place, a company aims to make cost savings, and also
encourage new customers.
3
Face – to – face CRM
Face to face CRM
▪ CRM can also be carried out in face-to-face interactions without the use of technology.
▪ Staff members often remember the names and favorite services/products of regular customers and use this
information to create a personalized service for them.
▪ For example, in a hospital library you will know the name of nurses that come in often and probably remember the
area that they work in.
▪ However, face-to-face CRM could prove less useful when organizations have a large number of customers as it would
be more difficult to remember details about each of them.
4
Benefits of CRM
Benefits of CRM
1. Reduced costs, because the right things are being done (i.e., effective and efficient operation) .
2. Increased customer satisfaction, because they are getting exactly what they want (meeting exceeding expectations) .
3. Ensuring that the focus of the organization is external .
4. Growth in numbers of customers .
5. Maximization of opportunities (e.g. increased services, referrals, etc.)
6. Increased access to a source of market and competitor information.
7. Highlighting poor operational processes
8. Long term profitability and sustainability
5
CRM Adoption Curve
CRM adoption curve
Unique
Differentiation
1- Manual
▪ Few defined processes , all manual
▪ Data locked in emails & spreadsheets
▪ No measurement or visibility
Generic
Manual Optimized
CRM Process
CRM adoption curve
Unique
Differentiation
2- Managed
▪ Repeatable processes
▪ Source of shared data
▪ Limited measurement and visibility
Generic
Manual Optimized
CRM Process
CRM adoption curve
Unique
3- Defined
▪ Automated processes
Differentiation
▪ Collaboration across customer facing teams
▪ Clear visibility into future performance
Generic
Manual Optimized
CRM Process
CRM adoption curve
Unique 4- Optimized
▪ Differentiated best practices
▪ Integrated and scalable systems
Differentiation ▪ Quickly adapt to changing market
Generic
Manual Optimized
CRM Process
6
CRM strategic framework (Five key cross-functional CRM processes)
CRM strategic framework (Five key cross-functional CRM processes)
• Successful CRM requires a cross-functional approach, involving not only marketing but the entire enterprise.
• Developing a cross-functional approach to CRM requires first determining the key processes that need to be
addressed and second identifying the key issues or questions that need to be addressed by the organization for each
of these processes.
There are five key cross-functional CRM processes that need to be considered by most organizations. These are:
1. The strategy development process
2. The value creation process
3. The multi-channel integration process
4. The information management process
5. The performance assessment process.
CRM strategic framework (Five key cross-functional CRM processes)
o These five cross-functional processes are fully oriented towards customers.
o CRM should be viewed as a strategic set of processes or activities that commences with a detailed review of an
organization’s strategy (the strategy development process) and concludes with an improvement in business results
and increased shareholder value (the performance assessment process).
o The notion that competitive advantage stems from the creation of value for the customer and for the company (the
value creation process) is key to the success of any relationship.
o CRM activities for all substantial companies will involve collecting and intelligently utilizing customer and other
relevant data (the information management process) to build a superior customer experience, at each touch-point
where the customer and supplier interact (the multi-channel integration process).
CRM as a cross function activity
CEO
Information
Marketing & Sales Finance Human Resources Operation
technology
Strategy development process
C
Value creation process u
s
t
Multi channel integration process o
m
e
Information management process r
s
Performance assessment process
Strategy development Value Creation process Multi Channel integration process Performance assessment
process process
Sales Force
Customer segmentation lifetime value
Value Customer Shareholders results
o Employee value
Integrated channel Management
Business strategy :- receives
o Value o Customer value
o Business Vision Outlets
proposition o Shareholder value
o Industry and o Cost reduction
competitive o Value
assessment Telephony
analysis
characteristics
Value organization Direct Market
receives Performance
o Acquisition Electronic Monitoring
economics commerce o Standards
o Retention o Satisfaction
economics Mobile measurement
Customer Strategy : Commerce o Results and KPIs
o Customer choice
and customer
characteristics
o Segment
granularity Data Repository
IT System Analysis Tools Front office application Back office application
Information management process
Thanks
Salma Elsayed
