1 / 23

Customer Relationship Management

1. Lecture. Customer Relationship Management. Explosion of CRM in Marketing & IT. Academicians “Darling” Global CRM Market - $42.8 billion. Enablers for Growth of CRM. Emergence of Service Economy Emergence of Market Economy Global Orientation of Businesses

erek
Download Presentation

Customer Relationship Management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 1 Lecture Customer Relationship Management

  2. Explosion of CRM in Marketing & IT • Academicians “Darling” • Global CRM Market - $42.8 billion

  3. Enablers for Growth of CRM • Emergence of Service Economy • Emergence of Market Economy • Global Orientation of Businesses • Aging Population of Economically Advanced Economies

  4. Emergence of Service Economy

  5. Emergence of Market Economy Controlled Market-Oriented UNITED STATES CUBA Customer Focus Market Conditions Innovation Orientation Deregulation of Banking, Telecom, Broadcasting, Airlines Entrepreneurship Culture

  6. Global Orientation of Businesses • Emergence of Trading Blocs : NAFTA, EU, ASEAN • WTO • Increasing International Trade • Liberalisation of Markets

  7. Aging Population of Economically Advanced Economies

  8. Aging Population of Economically Advanced Economies • Slowdown in Birth Rate • Increase in Life Expectancy • Slowed Market for Traditional Goods & Services • Increase “Share of Wallet” • Deeper Understanding of Existing Customers

  9. Criticality of Customer Relationships • Non-Traditional Competition • Market Maturity • Misalignment between Revenue & Profits

  10. Non-Traditional Competition • Porter’s Theory • New Entrants • Reliance (Telecom) • Jet Airways • Substitute Technology • Kodak – Sony – Samsung (Cameras) • VoiP (Telecom) • Supplier as a Competitor • Nilkamal Plastics • Customer as a Competitor • Private Brands of Retail Chains

  11. Market Maturity • Excess Capacity • Agriculture • Automobiles • Telecom Bandwith • Slow or Negative Growth in Developed Economies

  12. Market Maturity Repeat Customers Mature Markets Capacity Creation Capacity Utilisation Emerging Markets New Customers

  13. Misalignment between Revenue & Profit Unit/$ Non-traditional Competition Customer Relationship Management Cost Revenues Biggest Smallest Customers

  14. Misalignment between Revenue & Profit • Customer Subsidisation • Large Accounts (Loss) • Traditional Accounting

  15. Why Biz. should adopt CRM? • Demand : Rising Customer Expectations • Supply : Affordable Technological Advances

  16. Rising Customer Expectations • Increasing Affluence in Emerging Economies • GIMC – 300 million • DINK • Outsourcing of traditional HH activities • Greater Awareness due to explosive media growth • C&S TV • Information Explosion leading to Raising Customer Aspirations • Customer Diversity • Mass Customisation

  17. Affordable Technological Advances Production Distribution Affordable Technological Advances Facilitation Consumption

  18. Affordable Technological Advances • Production • CAD-CAM • FMS • JIT • Distribution • CALS • TPL • Forecasting • Database Technology

  19. Affordable Technological Advances • Facilitation • EDI -- Extranet • Internet – Airlines, Banking • makemytrip.com – 150,000 users • Consumption • Personal IDs • Customer – Co-producer : Dell, Levis • Anytime Anywhere Business : ICICI Bank (48% ATMs, 11% Net & 11% Call centre)

  20. Implementing CRM • Lower Costs of Customer Retention • Increased Profits due to lower defection rates

  21. Challenges in Implementing CRM • Top Management Commitment • Change Management • Developing Customer-Centric Processes • Integration with legacy systems • Identifying & Establishing Performance Metrices • Evaluation of RoI

  22. Technology Focus Poor Implementation Plan No clarity of Purpose CRM : High Rate of Failure

  23. 3 Key Capabilities • Relationship Orientation : Mindset, Values, Norms of Organisation • Deepen knowledge of customers • Internal Integration and External Alignment with customers’ processes

More Related