CRM Session 1[2]

CRM

The

Strategic

Imperatives

Early Adopters B2C

• Financial Services• Retailing• Telecommunication• Travel & Hospitality

CRM vendors

• Oracle Siebel• SAP• Salesforce• Microsoft Dynamics• Talisma

Enablers for growth of CRM

• Emergence of service economy

• Emergence of market economy

• Global orientation of business

• Aging population – developed economies

Emergence of service economy

• US Service sector (79.7% GDP and 80% workforce) -2012

• 60-70% of GDP of economically advanced nations (UK – 78.3% in 2012)

• 2010 – service Sector 55.2% GDP in India• Agricultural - industrial Mfg services• Services: Close to the customer

GDP sector wise in % Agriculture Industry Service

90-91 32 27 41

05-06 20 26 54

07-08 17 29 54

09-10 18.5 26.3 55.2

Indian GDP: $1.842 trillion (2012) –World Bank

Emergence of Market Economy

• Controlled Market• Deregulation

Lifting FDI restrictions to lure foreign investmentBanking, Broadcasting, Telecommunications opened

Global Orientation of Business

• Borderless world• GATT – WTO

• Indian being a member of WTO several countries are now trading with India, thus giving a boost to production, employment, standard of living and an opportunity to maximize the use of the world resources.

Aging population – Developed Countries

• 12.6% above 65 years USA (2000)• 17% above 65 years Japan & Sweden

India's older population is projected to quadruple by 2050, while that of the world is expected to triple (1.53 billion) - US Census Bureau

Needs are different• Wellness, Financial well being, security• Ever changing needs of customer

Non Traditional Competition(New Challenges)

• Porter Model• New Entrants• Substitute• Supplier becoming a competitor• Customer becoming a competitor

Non Traditional Competition(New Challenges)

• Market Maturity• Developed Countries -- Capacity utilisation• Agriculture, Automotives, aircrafts• New Market search

Non Traditional Competition(New Challenges)

• Misalignment between revenue and profit• Customer Subsidisation for market share

Why CRM?

Rising Customer Expectations• Increasing affluence amongst economies• Greater awareness due to media• Customer diversity

Technological Advances• Production Techniques CAD CAM• Distribution CALS• Internet

CRM Definition 1

‘a process that addresses all aspects of identifying customers, creating customer

knowledge, building customer relationships, and shaping their perceptions of the

organisation and its products’

Source: Gartner.

CRM Definition 2

‘Building and sustaining customer and infrastructure relationships. It is the

integration of customers in the company’s design, development, manufacturing and sales processes.… All employees need to

be in the business of building CRM’

Source: McKenna.