Customer Relationship Management

What is CRM?

A company-wide business strategy designed to optimize profitability and customer satisfaction by focusing on highly defined and precise customer groups.

CRM Continuum

Customer Touch-points

Any point of interaction at which brands touch consumers’ lives during their relationship. Can be divided into 3 stages.

1. Pre-purchase / Pre-usage
2. Purchase / Usage
3. Post-purchase / Post-usage

CRM and Customer Data

Knowing who your customer and what they want make a CRM strategy successful.

Collecting Data

1. Formal — survey, focus group study
2. Semi-formal/Informal — routine discussion with customer

Considerations in Data Collecting

• Relevance
• Capture additional contact details
• Capture information you sent out to the customer
• Anything that can add value to the relationship
• Legal implications (Ex: user privacy)

Customer Lifetime Value

Present value of the future profitability.

Cross sell — buying another product of the same brand.

Up selling — buying same in higher price.

Through CLV,

• decide the worthiness of a customer
• how much you are willing to spend to retain them

Value Creation Process

1. Determining what value the company can provide to its customers.
2. Determining what value the company can receives from its customers.
3. By successfully managing this value exchange, which involves a process of co-creation or co-production, maximizing the lifetime value of desirable customer segment.

Implementing CRM Strategy

1. Conduct a business needs analysis
2. Understand customer needs
3. Set objectives and measurements of success
4. Determine how you will implement CRM
5. Choose right tools

CRM Tools

1. Collaborative CRM tools
2. Social CRM tools
3. Operational CRM tools
4. Sales and marketing automation CRM tools
5. Analytical CRM tools

Customer Churn Rate — Rate of customers leaving the company.