Customer Relationship Management | CRM

Customer Relationship Management, also known as CRM, helps businesses successfully implement strategies, practices and technologies aimed at winning and retaining customers profitably. The objective of this business and management course is to equip you with a sound foundation of CRM concepts and best practices so you can implement CRM practices successfully for long-term profitability.
Businesses aim to win and keep customers. Their competitors also seek to do the same. Even the most successful firms, with excellent marketing programs for attracting customers, have trouble with customer retention.

In this course, you will learn how to shift from a short-term customer transaction-based mode of operation to a long-term relationship mode and understand the benefits of having strong customer relations.

How to build relationship with customers

Learning Goals
Objectives For Week 3

The focus of week 3 will primarily be on customer lifetime value, activity based costing and its benefits to firms.

In this week we will :

Explain the evolution of Marketing
Contrast profitability Vs market share
Demonstrate customer lifetime value
Describe Activity based costing for CRM
Discuss the concept of customer equity

https://www.youtube.com/watch?v=QDHJDvTTiu4&t=1s

We discussed in the previous unit that activity based costing helps managers identify the actual cost of serving customers. Customers can be further classified into high cost to serve customers and low cost to serve customers. High cost to serve customers with high profit margins is a desirable combination. Let us watch the above video to know about the characteristics of these customers.

Learning Goals
Objectives For Week 4

In week 4, we will primarily focus on the applications of CRM

In this week we will :
Describe the nature of services
Explore the applications of CRM in various industries

Cost of Losing a Customer

To reduce defections it is important to know its impact. Managers need to measure the cost of losing a customer to know the value of a customer and to take further steps to reduce defections

Service Recovery

In services, failures are inevitable owing to their nature. Service failures are of two types -
Failures which are not under the organization's control
Failures which are under the organizations's control
In case of a failure, what really goes a long way in regaining a customer's trust, and in retaining her, are the steps that firms take to recover from the failure. This can be classified as service recovery.

Service Guarantee

In the previous units we spoke about how it is difficult, yet important to maintain quality in services. In products we are all aware of the concept of warranty. Can the same concept be applied to services? Let us watch the above video to know.

CRM in Banking and Finance

Banking and Financial services are a necessity, and are characterized by a membership relationship. We often notice that customers are risk averse when it comes to deciding on a financial product. Customers conduct a lot of research before choosing a bank or a financial institution, but stay for a relatively longer time once they have made the choice.

Grameen Koota Case Study

Grameen Koota Financial Services Ltd. (GK) is a microfinance institution providing a wide range of services to the rural poor and low income households, particularly women.

In these videos Udaya Kumar, Managing Director and CEO, Grameen Koota (GK) talks about GK's turnaround and growth in a difficult market.

CRM in Healthcare

Just like the Hospitality industry, the Healthcare industry is extremely competitive. The risk involved for the customer is high. Just like banking, healthcare is a necessity and the customer does a lot of research before choosing a healthcare service.

CRM in Airlines

The airlines industry in India is very dynamic. The customer base has been increasing over the last few years. This industry is also competitive and people intensive. in these videos we discuss the importance of CRM in the airlines industry.

CRM in Speciality Chemicals

The rural markets in India are experiencing a rapid growth. Rural consumers aspire to buy branded and high quality products. In this unit we will introduce you to CRM in rural markets with a few interview clips of Dr. Rahul Mirchandani, Executive Director - Aries Agro, followed by a caselet on Aries Agro in the next unit.

CRM In Business Markets

Business markets are larger in size and have fewer customers. In week 5 we will see how CRM is practiced in business markets.

Learning Goals
Objectives For Week 5
In week 5, we will primarily focus on the applications of CRM and will look at how CRM is practised in the B2B context.

In this week we will :
Explain the role of CRM in the B2B context
Illustrate the importance of CRM in B2B markets

CRM in Business Markets

When buying and selling takes place between two firms - that constitutes business markets. Business markets are larger in size as compared to consumer markets, but have fewer customers. Business markets have some unique characteristics such as:
Market structure and demand
Nature of the buying unit
Types of decisions and decision process
Types of buying situations in B2B context

Market Structure and Demand

In this unit we will look at the first two characteristics of the business markets. Market structure and demand and nature of the buying unit.

Types of Decisions and Decision Process

In consumer markets, decision making is fairly simple. In business markets, the decision making process is longer and much more complex. In this video we discuss the types of decisions and the decision making process in B2B markets.

Participants in the Buying Process

In the B2B context, buying decisions are made by the buying centres that comprise individuals and units from across organizations. Every individual can influence the buying process.

Dipak Mane- is the Chief Human Resources Officer at the Buhler group. He has been associated with Buhler since 1992.

Bühler is a global leader in processing grains, rice, cocoa, coffee and other raw materials. It is also a leading solution provider of die-casting and surface-coating technologies in high-volume application areas, such as automotive, optics and inks. The group operates in over 140 countries. In this video Dipak Mane, CHRO- Bühler Group, talks about how the company has grown in the last 25 years.

Prashant Gokhale is the President - South Asia of Bühler. He has been associated with Bühler for almost two decades.

In this video Prashant Gokhale, President - Bühler South Asia explains the company’s operations, markets and products over the last 25 years.

Key Account Management

Key account management (KAM) is one of the most popular approaches used for customer retention. It is widely used as a part of CRM in the B2B context.

Key Account Management - Stages

Key account management is an organizational process that assumes that relationships are not static and evolve over a period of time. Each interaction influences its relationship and its growth. Millman and Wilson (1994) have developed a 6 stage model that is used to trace the stages of KAM.

Customer Value Management

Just like consumer markets, customers in the business markets too look for value in the offering. How is value created in the business markets?

CRM Implementation

In the previous weeks we constantly emphasized the importance of a customer centric approach and how customer retention can be profitable to firms. In this week we will look at how technology plays an important role in implementing CRM. Also the importance of organizational structure that is conducive to CRM and an overview of the common challenges that organizations face while implementing CRM.

Learning Goals
Objectives For Week 6

In week 6, we will primarily focus on technology for CRM and the CRM implementation process.

In this week we will :
List the importance of technology for CRM
Identify how to choose the right technology for CRM
Discuss the CRM implementation process
Examine the decisions related to CRM implementation
Explore budgeting for attraction Vs retention
Explain loyalty and rewards program
Describe how to evaluate loyalty and rewards programs

Campaign Management

With an increase in competition and rising demands of customers, it is important for marketers to keep their customers informed about their products. Marketing campaigns are one of the ways marketers communicate with their prospects and customers.

Campaigns are usually conducted-
On the launch of a new product
On the re-launch of an existing product
To strengthen the brand image
For a specific occasion
When new versions of an existing product are launched.

Most campaigns are conducted on a large scale, and in several cases many campaigns may be conducted simultaneously. Different consumers may prefer different modes of communication. Integrating all this is crucial to ensure that the brand image created in the minds of all the consumers is consistent. So, what are the functionalities of an campaign management solution?

Customer Service and Support

The interactions between a company and customer is very crucial after the customer has purchased the product. Efficient after-sales service is one way firms can retain customers. CSS, therefore is one of the most important component of CRM solution to enhance customer loyalty.

n the previous week, we introduced you to CRM in B2B. You may now be aware that the requirements of the business markets are slightly different as compared to consumer markets. So, what are the various capabilities a CSS solution should have in the business markets?