Unit-2 CRM Process | BBA 3rd Semester-2023

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Unit-2

Customer Relationship Management Process

Introduction of CRM Process

• Customer Relationship Management, is a strategy by which businesses build strong and long-term relationships with their customers. In this process, businesses collect customer data, track their interactions, and understand their needs and preferences.  This gives them an opportunity to provide better customer service and increase customer satisfaction.  Customer acquisition, retention, and engagement are key focus areas in the CRM process.  This allows businesses to maintain a personalized and effective communication with their customers.  This gives businesses customer loyalty and growth opportunities.
• In CRM process, the first step is to collect customer data. This data is related to customers’ interactions, purchases, and preferences.  This gives businesses accurate information about their customers.  The second step is to track customer interactions.  These interactions can happen through calls, emails, social media messages, and live chat.  This lets businesses keep track of their customers’ conversations and concerns.  The third step is to understand their needs and preferences.  For this, businesses use customer feedback, surveys, and market research.  This helps them know what customers want and what their expectations are.
• Customer acquisition, retention, and engagement are also important in the CRM process. In customer acquisition, businesses use marketing strategies to attract customers.  In customer retention, businesses keep their existing customers satisfied and loyal.  For this, they are given personalized offers, discounts, and rewards.  In customer engagement, businesses maintain regular communication with their customers.  This keeps them updated and maintains their interest.

Objective of CRM process

1. Customer Acquisition: Through the CRM process, businesses implement strategies to attract and acquire customers. This gives you an opportunity to engage your target audience and provide them with information about your products and services.
2. Customer Retention: Customer retention is also an important objective in the CRM process. Businesses keep their existing customers satisfied and loyal.  For this, they are given personalized offers, discounts, and rewards.  This motivates their customers to maintain a long-term relationship with the business.
3. Improved Customer Service: Through the CRM process, businesses aim to provide better customer service to their customers. They are given prompt response to their concerns and queries.  This increases customer satisfaction and loyalty.
4. Customer Engagement: Customer engagement is also an objective in the CRM process. Businesses maintain regular communication with their customers.  This keeps them updated and maintains their interest.  This gives businesses the opportunity to maintain a strong connection with their customers.
5. Data Analysis: In the CRM process, businesses analyze customer data. This gives them insights into what their customers’ preferences, needs, and behavior are.  This allows businesses to improve their products and services and better understand the expectations of their customers.

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CRM and e-CRTA Online

• CRM, i.e. Customer Relationship Management, is a business strategy in which businesses focus on building strong and meaningful relationships with their customers. In this, businesses understand the preferences, needs, and behavior of their customers and provide them personalized experiences.
• Now let’s talk about e-CRTA/online CRM. In this, businesses use digital platforms and online channels with their customers.  This gives them the opportunity of seamless communication and engagement with their customers.
• In e-CRTA/online CRM, businesses maintain online interactions with their customers. In this, businesses interact with their customers through personalized emails, social media messages, and chatbots.  This gives you the opportunity to provide quick response to your customers’ queries and 24/7 customer support.
• Apart from this, in e-CRTA/online CRM businesses can track the online behavior and transactions of their customers. This gives you insights into what types of products and services your customers are interested in.  This allows businesses to customize their marketing strategies and offers.
• One of the benefits of e-CRTA/online CRM is that businesses can provide a personalized experience with their customers. This increases customer satisfaction and loyalty.  Apart from this, businesses can maintain regular communication with their customers to keep them updated and maintain their interest.

CRM Cycle

There are two types of CRM cycle

1. Assessment Phase
2. Planning Phase

Link wikipedia – https://en.wikipedia.org/wiki/Customer_relationship_management

Assessment Phase

• In the Assessment Phase, businesses evaluate their current CRM strategies and processes. This means you have to analyze your customer interactions, data collection, and customer feedback.  This helps them know whether their existing CRM practices are effective or whether any improvements are needed.

Planning Phase

• In the Planning Phase, businesses plan their CRM strategies and goals based on the results of their assessment. This means they have to understand the needs and preferences of their customers.  After this, businesses define their CRM goals and set specific targets for them.  This gives them a clear roadmap on how they can build strong relationships with their customers.
• In the planning phase, businesses identify the resources, technologies, and tools required for their CRM implementation. A part from this, you have to plan the timeline and budget of your CRM strategies. This phase provides a structured approach to businesses so that they can successfully achieve their CRM goals.

Executive Phase

• In the Executive Phase, businesses implement and execute their CRM strategies. This means you have to handle interactions with your customers, data management, and customer engagement.
• In this phase, businesses are setting up their CRM systems and technologies. This gives them the capability of seamless communication and data management with their customers.  In this phase, businesses also train and empower their CRM teams, so that they can implement CRM strategies in the right way.
• In the Executive Phase, businesses monitor their CRM goals and targets. This lets them know whether their CRM strategies are delivering the desired results or whether any improvements are needed.  For this, businesses use their CRM data and analytics to give them insights and optimize their strategies.
• In this phase, businesses adopt a proactive approach to building strong relationships with their customers. This means you have to regularly track your customers’ feedback and preferences.  This lets them know whether their customers are satisfied and engaged or if any changes are needed.

Modules in CRM

• One of the modules of CRM is “Sales Force Automation” (SFA). This means businesses can automate their sales process, making it easier to track the performance of their sales team and streamline the sales cycle.
• The second module is “Customer Service Management” (CSM). These businesses manage their customers’ enquiries, complaints, and support tickets.  This gives them the capability of effective communication and problem resolution with their customers.
• The third module is “Marketing Automation” (MA). This means businesses can automate their marketing campaigns and activities.  This gives them an opportunity to improve targeted messaging, lead generation, and customer engagement.
• Fourth module is “Analytics and Reporting”. This means businesses can analyze their CRM data and metrics.  This gives them insights, such as customer behavior, sales trends, and marketing effectiveness.  These insights help you optimize your strategies and make better decision-making.

4C’s (Elements) of CRM process

1. Customer: In this element businesses focus on their customers. Understanding them, identifying their needs and preferences, and building strong relationships with them is its main objective.
2. Collaboration: This element allows businesses to collaborate and coordinate with their internal teams and departments. This gives them the capability of seamless communication and information sharing, which improves their overall CRM process.
3. Coordination: In this element businesses coordinate their processes and systems. This gives them the ability to manage data management, customer interactions, and sales cycles in the right way.
4. Customization: In this element businesses can customize their CRM strategies and solutions. This gives you the flexibility to address the specific needs and preferences of your customers.

Marketing Organization of CRM Process

• The CRM process is quite strategic for a marketing organization. Its main objective is to build strong relationships with customers and provide them personalized marketing experiences.  This gives you the opportunity to build customer retention, repeat purchases, and brand loyalty.

1. The first step in the CRM process is “Customer Data Collection”. These organizations collect data about their customers, such as demographics, preferences, and purchase history.  By collecting this data, organizations can better understand their customers and create targeted marketing campaigns for them.
2. The second step is “Segmentation and Targeting”. In this, organizations divide their customers into different segments, such as on the basis of age, location, and interests.  This helps you in providing targeted messages and offers to your customers.
3. The third step is “Campaign Planning and Execution”. In this, organizations plan and execute their marketing campaigns.  This gives them the opportunity to provide relevant and engaging content to their customers.  Organizations can create personalized messages, offers, and promotions using their CRM data.
4. The fourth step is “Customer Engagement and Interaction”. This means organizations can maintain effective communication and interaction with their customers.  This allows you to collect feedback from your customers, address their queries and complaints, and provide them personalized support.
5. The last step is “Performance Measurement and Analysis”. This means organizations analyze their CRM data, such as campaign effectiveness, customer response, and ROI.  This gives them an opportunity to optimize their strategies and gain learning for future campaigns

Affiliation of CRM

• CRM affiliation in the retailing sector means building strong relationships with customers and providing them personalized shopping experiences. This gives retailers customer loyalty, repeat purchases, and brand advocacy.

1. The first step in CRM affiliation is “Customer Data Collection”. This means retailers collect data about their customers, such as demographics, preferences, and purchase history.  By collecting this data, retailers can better understand their customers and provide them personalized shopping suggestions and offers.
2. The second step is “Segmentation and Targeting”. In this, retailers divide their customers into different segments, such as on the basis of age, gender, and shopping preferences.  This helps you provide targeted recommendations and promotions to your customers.
3. The third step is “Personalized Shopping Experiences”. This means retailers provide personalized shopping experiences to their customers.  This means you get customized product suggestions, personalized offers, and exclusive discounts.  This makes customers feel that their shopping experience is special and that their needs and preferences have been understood.
4. The fourth step is “Customer Engagement and Interaction”. This means retailers can maintain effective communication and interaction with their customers.  This allows you to collect feedback from your customers, address their queries and complaints, and provide them personalized customer support.
5. The last step is “Performance Measurement and Analysis”. This means retailers analyze their CRM data, such as customer satisfaction, purchase patterns, and sales performance.  This gives them the opportunity to optimize their strategies and gain learnings for future shopping experiences.