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UNDERSTAND THE ECOSYSTEM IN DIGITAL MEDIA MARKETING

13/09/2019
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CHAPTER 1INTRODUCTION

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CUSTOMER RELATIONSHIP MANAGEMENT: AN INTRODUCTION

Customer Relationship Management (CRM) is a managerial philosophy that seeks to build long term relationships with customers. CRM can be defined as “the development and maintenance of mutually beneficial long-term relationships with strategically significant customers every sector is facing cut-throat competition in the market and retail sector is not an exception to it. These days, retails are facing an aggressive competition and they have take efforts to survive in this market place. Retail outlets have understood that managing

Customer relationships are a very essential factor for success. The emergence of services organizations in the corporate sector, the growing competition due to liberalization, and the growing expectations of customers propelled by globalization and facilitated by IT revolution – are defining new rules of game for existing private and public enterprises in India. Telecom is one of the fast growing sectors among the services. The mobile revolution has created a new wave of interest among people to utilize telephone services. The firms offering the services are vying with each other to capture this sudden spurt in demand.

This study strongly supports the connection that consumer were more satisfied with professional service provider who engaged in both courteous expressions and personal connections forms of sociality. Moreover, finding revealed that regardless of services context customers expect service provider to be courteous usually ,most conversation begin or end with a courtesy expression and includes some form of personal connection content.

The important point is that sociality communication can play a pivotal role in moving the provider and consumer for mere encounters to higher degree of relational development. This is a project to develop a Customer Relationship Management (CRM) system. CRM is one of the systems included in Enterprise Resource Planning (ERP) System.

CRM in this project is included few modules. The modules included are customer filtering, customer profiling and promotion tools. Customer filtering allows the user filter out a customer list from the customer database by using customer’s demographic information. Customer profiling to makes each customer is having a profile; the user may see the customer’s profile included analysis of customer. Promotion Tools allows the user can create new promotion base on the product, and filter list of customer to promote the promotion.

Customer Relationship Management is a strategy used to learn more about customers’ needs and behaviors in order to develop stronger relationships with them. The idea of CRM is that it helps businesses use technology and human resources to gain insight into the behavior of customers and the value of those customers.

If it works as hoped, a business can:
1. Provide better customer service
2. Make call centers more efficient
3. Cross sell products more effectively
4. Help sales staff close deals faster
5. Simplify marketing and sales processes
6. Discover new customers
7. Increase customer revenue

It doesn’t happen by simply buying software and installing it. For CRM to be truly effective an organization must first decide what kind of customer information it is looking for and it must decide what it intends to do with that information. A recent (2001) survey of more than 1,600 business and IT professionals, conducted by

The Data Warehousing Institute found that close to 50% had CRM project budgets of less than $500,000. That would appear to indicate that CRM doesn’t have to be a budget-buster. However, the same survey showed a handful of respondents with CRM project budgets of over $10 million.

Customer relationship management is a broadly recognized, widely-implemented strategy for managing and nurturing a company’s interactions with clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. Once simply a label for a category of software tools, today, it generally denotes a company-wide business strategy embracing all client-facing departments and even beyond.

These tools have been shown to help companies attain these objectives:
1. Streamlined sales and marketing processes
2. Higher sales productivity
3. Added cross-selling and up-selling opportunities
4. Improved service, loyalty, and retention
5. Increased call center efficiency
6. Higher close rates
7. Better profiling and targeting
8. Reduced expenses
9. Increased market share
10. Higher overall profitability
11. Marginal costing

EMERGENCE OF CRM
The origins of a relationship-based approach to a firm’s management emerged from academics and practitioners in the fields of strategy, marketing and supply chain management (Bagozzi, 1974, 1975; Berry, 1983; Osarenkhoe, 1992; Gummesson, 1999; Zineldin, 2000; Nielsen et al., 2003; Martin and Bush, 2003). In the mid-1970s, Bagozzi (1974, 1975) began to gain an understanding of marketing activities as an exchange between the seller and buyer – thereby forming a basis for subsequent conceptualization of relationship marketing. The question is to understand how the relationship develops and changes over a period of time. The possibility of delineation of phases within a relationship makes it necessary to explicitly design relationship marketing.

This conceptualization first appeared in the early 1980s in the research field of services marketing (Berry, 1983; Dwyer et al., 1987; Ford, 1980; Hammarkvist et al., 1982; Jackson, 1985; Kim and Kim, 2001; Guenzi and Pelloni, 2004; Matthing et al., 2004; A kerlund, 2005).Concept of Relationship Marketing


The concept of Relationship Marketing was born within the field of service marketing and industrial marketing (Berry, 1983; Gummesson, 1987; Christopher, Pyne, and Ballantyne, 1991). In 1992, Webster reported that there has been a paradigm shift from a ‘transaction’ to a ‘relationship’ focus.

Drivers of CRM
Jagadish N.Sheth (2002) observes that energy crisis that led to stagflation and competition in industries like consumer electronics, textiles, steel and chemicals made industry to realize that retention of customers is more important than acquiring new ones. Possibilities in management of services such as telephones, health care and power, to keep record of transactions over a period of time for analyzing the quality of customer service and response patterns etc. has increased the scope to analyze the implementation of tactics and their outcomes. Directly service key accounts. In the supply chain the collaborative relationships have become common practices. Information technology has increased the scope to adopt innovative styles in customer service. The sales automation, customer data bases and cross-functional integration through Enterprise Resources Planning (ERP) have expanded the scope for relationship marketing since the mid-1990s.

DEFINITIONS OF CRM
The term relationship marketing was first coined by Berry in the context of services marketing. Relationship marketing is ‘attracting, maintaining and enhancing customer relationships’. Servicing and selling existing customers is viewed to be as important to long-term marketing success as acquiring new customers (Berry 1983).

This concept is extended by Gro¨nroos to include channels and someoperational aspects. “Relationship marketing is to establish, maintain andenhance relationships with customers and other partners, at a profit, so that the objectives of the parties involved are met”. This is achieved by a mutual exchange and fulfillment of promises (Gro¨nroos, 1994). He indicates that beyond commercial interest, partners recognize the mutual benefit to be derived from such relationships.According to Shani and Sujana (1992), relationship marketing is “an integrated effort to identify, maintain and build up a network with individualconsumers and to continuously strengthen the network for the mutual benefit of both sides, through interactive, individualized and value-added contacts over a long period of time”. They contend that developing a long-termrelationship with the customer enables the firm to add value to its offerings.

The Gartner group (2000) defines CRM as “Management discipline and a philosophy that requires businesses to recognize and nurture relationship with customers. With CRM, a customer’s needs and preferences are available to anyone working in the business at the customer interface, regardless of channel. Each customer is treated as an individual in a relationship that creates feeling of one-to –one

CRM is an integrated information system that is used to plan, schedule and control the pre-sales and post-sales activities in an organization. CRM embraces all aspects of dealing with prospects and customers, including the call centre, sales-force, marketing, technical support and field service. The primary goal of CRM is to improve long-term growth and profitability through a better understanding of customer behavior. CRM aims to provide more effective feedback and improved integration to better gauge the return on investment (ROI) in these areas.

The different definitions on CRM are philosophically similar but operationally differ by their emphasis. Some highlighted objectives, some otherslaid emphasis on approaches and others talked about benefits. In defining what is to be done, some have chosen the broad areas like establishing, maintaining and retaining whereas others talked about specific acts like selling and servicing etc.

CRM Success Factors
· Strong internal partnership around the CRM strategy.
· Employees at all levels and all areas accurately collect information for the CRM system 

Characteristics of CRM
CRM as compared to traditional marketing involves series of transactions, regular and continuous interactions beyond simple exchange process, long term objectives, bonds involving investment of time and energy to produce positive interactions, investment by the parties, some switchingIn India CRM have deep roots in the practices of business. The business men used to establish bondages with customers at emotional level, especially in small towns and villages. However, in modern corporate world, CRM has appeared as a new concept in the mid-1990s, more as a technology that would change dramatically the way corporations managed their networks and interaction points with customers (Rado Kotorov,2003).

Thus the modern CRM, in its early stages, was deployed as a technology solution: a software package that was bought and installed to facilitate or automate some marketing functions. The terms “sales-force automation”, “campaign automation”, “customer support automation” were often equivocated with CRM, even though they stand only for different components of the enterprise-wide CRM strategy. Shortly after the deployment of such packages it became evident that they were not used as planned and remained as show pieces. (Albert Stroucken, CRM, August 2002).

1. Customer Application Forms:
Retail Outlet collects all the data from customer application form and gets the personalized information to know which product to offer to which customer. This process helps in collecting the data and knowing what the customer wants.

2. Centralized Software where the Whole Data is Collected:
The data collected through customer application forms is available at one server and can be accessed anytime, anywhere. So, this helps in the further process of customized offerings and cross –selling.

3. Wide Range of Offerings:
After collecting the data from the customer, team decides what product to offer to which customer. In case the Retail Outlet recognizes you as a valuable customer then is offers a more customized service.

4. Cross – Selling:
It refers to offering another product from the service offering of the Retail Outlet to the customer which he has not gone for. This depends on the value of the customer to the Retail Outlet. Cross selling is not offered to every customer. It depends on how loyal the customer is to the Retail Outlet. The more business he gives us, the more are his chances of being special services offered.

5.Feedback Forms:
The Retail Outlet distributes feedback forms. The customers feedbacks on the service, technology used,mployee behavior and promptness in solving customer’sproblems, are taken and they are analyzed

 
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