Transcript Linking Strategies and the Sales Role in the Era of

Customer Relationship
Management
Sales and Distribution
Management
Marketing 3345
CRM is…
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a comprehensive business model for
increasing revenues and profits by
focusing on customers.
both an overarching business
philosophy and a process tool to
facilitate a truly customer-driven
enterprise.
CRM is…
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“…a journey of strategic, process,
organizational and technical change
whereby a company seeks to better
manage its enterprise around customer
behaviors. This entails acquiring
knowledge about customers and deploying
this information at each touchpoint to
attain increased revenue and operational
efficiencies.”
PriceWaterhouse Coopers
Customer-Centric Cultures
Include…
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Adopting a partnership business model
with mutually shared risks and rewards
Defining selling as customer business
consultation
Formalizing customer analysis processes
and agreements
Being proactive in educating customers
about value chain and cost reduction
opportunities
Focusing on continuous improvement
principles stressing customer satisfaction
Objectives of CRM
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Customer Retention - retain loyal and
profitable customers and channels
Customer Acquisition - acquire customer
based on known characteristics which
drive growth and increase margins
Customer Profitability - increase individual
customer margins by offering the right
product at the right time
Advantages of CRM
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Reduces advertising costs
Increases awareness of customer needs
Tracks the effectiveness of promotional
campaigns
Allows competition for customers based on
service, not prices
Prevents overspending on low-value
clients and under spending on high-value
ones
Speeds the time it takes to develop and
market a product
Improves use of the customer channel
The CRM Process Cycle
10 Critical Questions in CRM
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Customers
• Who are our customers?
• What do our customers want and expect?
• What is the value potential of our customers?
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The Relationship
• What kind of relationship do we want to build?
• How do we foster exchange?
• How do we work together and share control?
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Managerial Decision Making
• Who are we?
• How do we organize to move value closer to our
customers?
• How do we measure and manage our performance?
• How do we increase our capacity for change?