Types of CRM

Time-line of CRM Evolution

1st Generation (functional CRM approach)
• Sales force Automation (SFA)
Pre-sales functions, prospect management, telemarketing, lead generation,
sales quotation, placing sales order.

• Customer Service and Support (CSS)

• Help desks, contact and call centres, field service support combined SFA/CSS
market niche small
• Market for ERP growing
CRM Evolution (contd.)
2nd Generation (customer facing front-end approach)
• CRM technology filled the gaps left in ERP
• Goal was single view of customer irrespective of purpose of contact/mode of
contact.

3rd Generation ( Strategic CRM) End 2002

• Integration of customer-facing front-end with back-end systems as well as web
integration.

• 4th Gen: Social CRM: Facebook, Twitter, LinkedIn, Second life and other
engaging social media networks, enable a more precise segmentation
Social CRM

Collaborative

Analytical

Operational
Operational CRM
• Automates communication with customers and connects to customer
touch points.
• Function like call center, order processing, online transaction, website
mgmt., changing data collection process and data management.

• Includes installation of hardware/software upgrading, reconfiguring IT

infrastructure.

• Directly these projects do not produce revenue, if successfully done,

provides data for CRM projects
CRM software demo

• [Link] (Salesforce Training 17 min)

• [Link] (Managing leads 1 hr)

• [Link] (SF Training for Beginners (Part-3)

• [Link] Tutorial 3hr)

 Operational CRM : Infrastructure
Involves ...automation of processes involving customer touch points.

CRM solutions :
• Electronic Point of Sale (EPOS)
• [Link]

• Sale Force Automation(SFA)-

• [Link]
• [Link]
• Customer Service Support(CSS)
• [Link]
• [Link]
• [Link] (ZOHO)

• Call Centers

• Campaign Management (CM)

• [Link] (Agile)
• [Link] (Salesforce)
• [Link] (Dynamics 365 CE CRM)

• [Link] (Hubspot)
• [Link] (Lead scoring SF)
• [Link] (Dynamics 365 Sales (CRM)
Analytical CRM
• The only sustainable competitive advantage is the ability to learn
faster than your competition and to be able to act on the learning.

Jack Welch….former CEO GE

Analytical CRM
• Blends the customer data collected in Operational CRM with data
from external sources in order to increase companies' knowledge and
understanding of customers, products, and transactional data to
improve strategic decisions.
Analytical Projects
• Leverages resources created by operational projects

• Helps determine customer strategy and development of on-going CRM

strategy

• Major activities:
• CDP unifies customer information in a central location so that it is
accessible to marketing, sales, customer support and finance teams.
It combines customer data from internal and external sources in a
variety of formats, including structured and unstructured data, to
create a single profile for each customer.
• Conducting predictive modelling or performing customer
segmentation.
Analytic Competitors across industries
CPG BFS Hospitality& Industria Pharma Retail Telecom Transport eCommer
Entertainment l ce
Products
Anheuse Barclays Harrah’s Cemex Astra Amazon Sprint Fedex Google
r entertainment Zeneca
Busch
Mars Capital Oakland A’s John Solvay TESCO O2 Schneider Netflix
One Deere National

P&G RBC Marriott Vertex JCPenny UPS Yahoo

Gallo Progres New England Walmart

Winery sive Patriots
Core of Analytic CRM
Attributes of Analytical CRM
• Distinctive capability, strategic.
• Enterprise-wide approach and management of analytics.
• Senior management commitment
• Large scale ambition
Analytics in Use
• Netflix: predicting customer’s movie preference.
• Harrah’s: customer loyalty
• Marriott International: Revenue management
• Capital One: customer desirability.
• Walmart: supply chain analytics
• Professional sports team: choosing the right players
• Progressive: High FICO score will pay less premiums
• US elections 2012: us of big data
Collaborative CRM
• Focus on exploiting interaction with customers through customer
touch points for enhancing customer self service.
• Interaction management tracks the touchpoints between a business
and its customers through various communication channels.
Interaction management helps the organization manage and keep
track of each exchange to ensure customers are not over-
communicated.
Applications of Collaborative CRM
Responsible for gathering data through various channels (fax, phone,
web, email, chat) of communication of the enterprise with the
customer.

It manages the data in a way that facilitates interactions with

customers.

Collaborative CRM employs new communication systems, such as

web forums, Voice over Internet Protocol (VoIP), and chat rooms.
Social CRM
• Is the integration of social media channels into CRM platforms.

• Increasingly, CRM platforms support social media alongside

traditional channels so customers can interact with businesses via
their preferred channels.

• This means better customer service and greater marketing insight

gathered from customer social media data.
Social CRM-Case of Bosch
• The firm provided a social media service - the ‘Bob Community’ - which is accessible
from its website. Bob Community had attracted 460,000 visitors with 35,000
registrations. By comparison, its new company Facebook page had attracted 4,000 fans.
• Bosch needed to determine whether its investment in Facebook was reaching the
desired demographic, and to measure the value of its Facebook fans compared to that of
Bob Community users.
• Using this data, Bosch could then allocate the right amount of marketing resources into
each channel and produce a focused social media CRM programme.
• The company also aimed to build relationships with key customers who, it felt, would
significantly influence the purchasing behaviour of other Facebook fans and visitors to
the fan page.
• The challenge was to foster a relationship with these ‘brand advocates’, and to continue
to facilitate positive interaction amongst the community, through an increasingly focused
social media programme.
Components of CRM Strategy
1) Customer-Management
Orientation

4) CRM
Strategy
Implementation

2) Integration and 3) Information capture

alignment of and alignment of
organizational processes technology
CRM Implementation Matrix

Customer dimension (CLC stages)

Acquisition Growth and Decline and

stage retention stage exit stage

Analytical
CRM

Management
Operational
Dimension
CRM

Each cell in the matrix corresponds to a specific implementation activity or process

Customer dimension: captures influence of changing phase of a customer-firm
relationship
Management dimension: constitutes analytical and operational aspects of CRM
Implementation Issues

• Resistance from employees

• Motivation and Training

• Availability of information
CRM@Employees
• CRM Strategy is increasing employee satisfaction
to increase customer satisfaction

• Internal Marketing (IM)-treating employees as if they were

customers- involves:
• Improving management style
• Improving recruitment practices
• Integrating all employees into the planning cycle
• Refocusing training on interactive and service skills
• Open communication lines and empowerment of front-line staff
CRM Failure and the Seven Deadly Sins

• Focusing solely on technology.

• Losing sight of customers.
• Ignoring customer lifetime value.
• Lack of management support.
• Undervaluing data analysis.
• Underestimating change management.
• Inflexible business processes.
CRM & Marketing Channels
Adrian Payne’s Framework
Mutichannel vs Omnichannel
• "All omni-channel experiences will use multiple channels, but not all
multi-channel experiences are omni-channel.

• Omni-channel experiences includes all channels devices and

platforms.

• Multi-channel strategy might include two or three channels.

“Despite the prevalence of new advertising and promotional channels
and significant investments in data and technology, marketers are still
struggling to generate and to prove sales results in an increasingly
omnichannel world”.

Eric Solomon, Senior VP Nielsen 2018

Pre-Internet and
Pre-Digitization
era role of
channel
Emergence of of multichannel world
Scope of Multi channel Marketing
• Scope of MCM grew beyond fulfillment to whole gamut of
interactions between firm and its customer.

• ‘Design, deployment, coordination and evaluation of the channels to

enhance CUSTOMER VALUE through effective CUSTOMER
ACQUISITION, RETENTION and DEVELOPMENT”

• Every stage of CJ can be performed by specific channel. Creating a

portfolio of channels. Allows customer to self select channel.
How multi channel worked
• There have never been more ways to connect with customers.
• A customer checks a bill online, following up minutes later with
an email to report an unresolved issue. Not satisfied with the
automated response, she calls the service center, and while on
hold for 10 minutes, tweets about the company and updates
Facebook friends about the ordeal.

• These channels have not been synergized.

CRM and Marketing Channels – Channel
Types
Offline Channels

Indirect Channels

Online Channel

Channel Types

Offline Channels

Direct Channels

Online Channel
Customer Relationships: Direct & Downstream

DIRECT RELATIONSHIP
Goods
TITAN
Information
Manufacturer End Customer
Dollars

Goods Goods
Information Channel Information
Dollars Intermediaries Dollars

UPSTREAM DOWNSTREAM
RELATIONSHIP RELATIONSHIP
(from channel perspective) (from Channel perspective)
CRM and Marketing Channels – Indirect Channels
Indirect customer relationship management requires the use of an intermediary to manage the end-customer relationship indirectly. For
example, Henkel sells its products through supermarkets.

Advantages Disadvantages
1. Managing channels through 1. Lack of control over
specialized intermediaries the intermediary‘s
CRM activities
2. Use of existing channels
(less costly) 2. Need of intensive
3. Private label’s in conflict intrachannel coordination
with national labels
CRM and Marketing Channels – Direct
Channels
Direct customer relationship management does not include an intermediary; product information is communicated
directly to the consumer. E.g., In 2006, Nivea opened its first company-owned store in Hamburg, Germany.

Direct online channels are a

Direct offline channels can enhance
low-cost alternative to achieve
loyalty due to the ability to create
coverage and a valueable
social and economic bonds with the
source for customer
customer. Pseudo relationships/brand
information.
equity. Advantages Disadvantages
1. Control of CRM activities 1. Implementation of direct
2. Direct contact with customer channels costly Challenges / Disadvantages:
Challenges / Disadvantages:
guarantees service/ 2. Need to develop ▪ Price focus of customers
▪ Channels are very costly. Thus, information quality channel-specific skills
▪ Low switching costs
firms increasingly switch to
electronic channels and/or develop
customer self-service strategies Firms have created direct channels
(Payne & Frow, 2004). Patanjali, Amul
[Link]
[Link]
[Link] may be?
Born direct
• Warby Parker
• Everlane
• Casper
• The Honest Company
• Mamaearth
• Wow Science
• Cure fit
CRM and Marketing Channels –
Multichannel Trends
1. Proliferation
of direct
channels
SST

4. 2.
Research Multichannel Multichannel
shopper Trends systems as a
phenomenon norm

3.
Multichannel
shopper
KEY QUESTION
• What are the best ways for firms to get to customers and for
customers to firms?

• What does a perfect customer experience look like?

Seamless, consistent digital and physical experience becomes
paramount – this separates retail company "winners" from "laggards,“.

Continuous touchpoints between physical and digital environments,

across stages of customer decision journeys.
Multichannel ----------------- omnichannel
• Unified CX rather than facilitating transactions.
• Set of channels should align with the way customers search, purchase,
consume and share their experiences.

• Omni channel Marketing: synergistic management of all customer

channels , content, devices and touchpoints both internal and external to
the firm to ensure that CX across channels as well as firm side activity,
including marketing mix and marketing communication (owned, paid,
earned) is optimized for both firms and its customers.
• Objective function may be increased CX, market share, profits and CLV.
Omni-channel emergence
• According to Forrester Research, the term omni-channel is defined as the
strategic coordination of all channels—including online, offline, paid,
owned, or earned—as determined by a brand’s context and channel mix.
Average consumer requiring up to 13 unique touchpoints before
converting.

• a consumer is driving along the highway and notices a billboard for a

particular product. Sometime later, he notices a TV ad for the same
product. Curious, he begins to research the product on his phone. Later on,
he sees a retargeting ad on his computer. From there, he makes the
decision to walk into a brick-and-mortar location and purchase the product.
• [Link] (Ford case)
Omnichannel Integration

▪ The integration of channel functions refers to the combination of service

outputs from various channels. E.g., H&M allows customers to return their
online purchases in any store

▪ Channel integration allows firm to gain access to more customer data and to
learn from recorded customer behavior

▪ Channel integration thereby increases customer satisfaction and loyalty

[Link]
business-bonobos-pants/1916885
Challenges
• Data challenges
Firms such as REI carefully plan for their customer experience to be unified across all touchpoints. While REI has a
large physical footprint, it is mobile-centric app encourages its customers to use the app. For instance, if a customer
clicks on a product in an email from REI and installs the mobile application, the app will note which nearest store has
the product in stock. In addition, when customers visit a store, they are strongly encouraged to join the store Wi-Fi,
log into the app, and check product availability. Disney and Bank of America are examples of other companies that
have carefully integrated the customer experience across different channels (Fontanella 2020)

• Marketing Attribution challenges

• Multichannel marketing investments are optimized on a channel-by-channel basis.
• Omnichannel setting, such optimization needs to be done jointly across all distribution and communication
channels.
• Purchase funnel has many stages, traversed in a non sequential manner.

• Customer privacy
• Marketing attribution is the process of tracking and valuing marketing touch
points that lead to a desired outcome.
• Credits the channel based on their prospect-customer conversion abilities.
• Single-Touch Attribution Model
• First-Touch Attribution: First-touch attribution assumes that the
consumer chose to convert after the first advertisement they encountered.
Therefore, it gives full attribution to this first touchpoint, regardless of
additional messaging seen subsequently.
• Last-Touch Attribution: Conversely, last-touch attribution gives full
attribution credit to the last touchpoint the consumer interacted with before
making the purchase, without accounting for prior engagements.
• Multi-Touch Attribution Model
• Multi-touch attribution models look at all of the touchpoints engaged with by the
consumer leading up to a purchase. For example, some assign value based on when
a consumer interacted with a touchpoint relative to the conversion, while others
weigh all touch points equally.
• These models are largely differentiated by how they divide credit between
touchpoints on the path to purchase.

• Linear: Linear attribution records each touchpoint engaged with by the consumer
leading to purchase and it weighs each of these interactions equally, giving each
channel/message the same amount of credit toward driving the conversion.
• U-Shaped: scores engagements separately, noting that some are more
impactful than others on the path to purchase. Specifically, both the first
touch and lead conversion touch are each credited with 40 percent of
responsibility for the lead. The other 20 percent is divided amongst the
touchpoints engaged with between the first and lead conversion touch.
•
• Time Decay: The time decay model also weighs each touchpoint
differently on the path to purchase. This model gives the touchpoints
engaged with closer to the conversion more weight than those engaged with
early on, assuming those had a greater impact on the sale.
CRM and Multichannel Management –
Multichannel Shoppers
1. Multichannel shoppers are more loyal
▪ Their service output demands can be easier met as multichannel shoppers choose the
most appropriate and convenient channel for each transaction

2. Multichannel shoppers spend more money

▪ They see advertisements more frequently through various channels

3. Multichannel shoppers purchase more frequently

▪ Shopping is possible in any situation

4. Multichannel shoppers are typically heavy users

▪ Customer self-selection: More profitable heavy users tend to purchase from multiple
channels (Neslin et al., 2006)
CRM and Multichannel Management –
Multichannel Shoppers
It is important for firms to identify multichannel shoppers to increase profits

High
degree of
cross-
buying
Active
Large
initiation
number of
of firm
channels
contact
Drivers of
multichannel
shopping
High level
High
of web-
purchase
based
frequency
contacts

Customer
tenure
 Change…in channel management
• Disintermediation in( Dell)

• Reinter mediation: emergence of new types of intermediary

with the use of technology.(Infomediaries)

• Reintermediaries in automobile industry.

Designing Loyalty Programs
Reichheld’s theory
 Case
• A frequent flyer of ABC airline might continue
the relationship because he has accrued
many points and wants to redeem his miles.
Although he intends to travel with XYZ airline
because of its superior quality of service and
experience, he feels compelled to continue
transacting with ABC.
• Reichheld’s theory in practice
 The link between Loyalty and Profits
• Reichheld’s hypotheses

– Long term customers spend more per period over

time
– Cost less to serve per period over time
– Have greater propensity to generate word-of-
mouth
– Pay a premium price when compared to that paid
by short-term customers

• Does not hold true in a non-contractual

relationship
The link
between
Satisfaction
and
Retention
 Lifetime Duration-Profitability
Association
• Reinartz and Kumar: Across the different firms,
– there is a segment of customers that is loyal but not very profitable
– there is a segment that generates very high profits although it has
only a short tenure
– Since these short-term customers can be very profitable, it is clear
that loyalty is not the only path to profitability

– Airlines have started moving from “miles flown to

dollars spent”. 45% of flyers stand to lose.
Meaning measure and management of
LP changing
• Identify
• Reward
• Retain profitable customers….
 Loyalty
• Behavioral loyalty: the observed action that customers have
demonstrated towards a particular product or service

• Attitudinal loyalty: the perceptions and attitudes that a customer has

towards a particular product or service.
• Is there a correlation between this two?
• What kind of loyalty does Walmart ‘super catcher app’ create?
• When loyalty involves bribery , its bad for business.
• Confusing loyalty with retention, promotion and rewards undermines
brand equity.
 Loyalty Programs
• A marketing process that generates rewards to
customers based on their repeat purchasing .

• Customer forgoes free choice while entering an LP

• In return accumulate assets (for example, ‘points’)

• Points are exchanged for products and services,

typically but not necessarily associated with the focal
firm
• CRM tool used by marketers to identify, award, and
retain profitable customers
• [Link]
[Link] Beauty INSIDER
[Link] Atlantic Flying Club
[Link] Prime
[Link] Passport Rewards
[Link] Loyalty Program
[Link] Perks
[Link] Co-op
[Link] Mileage Plus
[Link]é Rewards
[Link] Rewards
[Link] Treats
[Link] Green Sweet Rewards
[Link]
[Link] North Face
[Link] Body Shop
Key Objectives of Loyalty Programs
• Key objectives of introducing LPs:

– 1. Building true (attitudinal and behavioral) loyalty

– 2. Effiency profits
– 3. Effictiveness profits
– 4. Value alignment
 CRM at Work: Supermarkets -
Difficulty in Building True Loyalty
• Despite spending hundreds of millions of pounds on price-cutting
campaigns and loyalty card schemes, supermarkets
have only persuaded a small minority of shoppers to stay loyal
• According to a report from Mintel Research:
– Only 15% of all grocery shoppers are completely loyal to the store
where they do their main grocery shopping
– 29% use one other store
– 22% use two others
– Men are more likely than women to be loyal to a single store
– 46% of men shop in just one or two main stores
 Efficiency Profits

• Change in buying behavior can be measured,

in:
• Basket size
• Purchase frequency acceleration
• Price sensitivity
• share-of-wallet
• Retention
• Lifetime duration

Any shortcoming to this?

 Effectiveness Profits
• better learning about customer preferences
over time

• firms avoid costly mass marketing expenses,

offers personalized recommendations.
 Eg
• Pizza Chain Earns More Dough in Bad Weather
A pizza chain uses a mobile app and mobile
marketing techniques to deliver coupons
based on bad weather or where power
outages leave consumers unable to cook. This
mobile and location-based marketing
campaign achieves a 20% response rate
 Value Alignment
• Aligning the cost to serve a particular customer with the value he/she
brings to the firm

• Value alignment is particularly critical when there is great heterogeneity

in the customer’s value and in the cost to serve the customer
Example: the airline business, the hospitality industry and the financial
services industry
1000
860
800

600
435

(in $'s)
Revenue
400
• Example of a firm with a highly 200
161 159
per year
Annual

heterogeneous customer base: 0

17

-67
profit

Tier A represents 71% of the customer base -200 Tier A Tier B Tier C

Tier B 42% and Tier C the remaining 27%. Should have 3 typres of LP’s
• Figure 10.1 illustrates an example of a firm with
a highly heterogeneous customer base. It indicates the profitability of a bank, derived
from
three very different customer profiles: Tier A represents 31% of the customer base,
whereas Tier B
makes up 42%, and Tier C makes up the remaining 27% of the customer base. More
than onequarter of these customers are unprofitable and
must be subsidized by the highly profitable ones – a condition not uncommon in banks.
Loyalty Programs Membership Growth
 Examples of LPs
• Frequent-Buyer programs
– In 2015, Payback, Germany’s largest LP and
couponing platform had 28million member accounts.
– American Advantage is the largest flyer program in
the world.
• Tesco managed to take market share from
Sainsbury with Clubcard with 30%
• Amazon developed Prime. Prime customers
spend 150% more on Amazon after becoming a
member.
 Typology of LP
• Type 1 –supermarket programs. LP open for all.
(Members receive additional discount at register)

• Type 2- Car wash, salon. LP open to all.

(Members receive 1 free when they purchase n
units.)
 Typology of LP contd…
• Type 3 Airlines, hotels, credit cards
(Members receive rebates on points based on
cum. purchases.)

Type 4 Tesco, Harrah’s, Hallmrk

(Members receive targeted offers and mailings)
 Design Characteristics of Loyalty
Programs
• Reward structure

– Hard vs. soft rewards

– Product proposition support (Choice of rewards)
– Aspirational value of reward(Neiman Marcus,
MIG 29)
– Rate of rewards
– Timing of rewards
 Reward Structure

• Hard vs. soft rewards

– Hard rewards: price reductions, promotions, free

products and preferred treatment

– Soft rewards: psychological benefit of having special

status in addition to receiving preferred customer
service
 Reward Structure (contd.)
• Product proposition support
– Reward directly supports the firm’s product proposition

• Example: The US Bagel franchise Finagle-A-Bagel has a LP that allows

participants to redeem their accumulated bonus points for the firm’s
own products – sandwiches and drinks

– Allows LP member to redeem points for products that are

completely unrelated to the focal firm’s offering
• Example: British Petroleum’s LP users may redeem points from their
gasoline-related purchases for merchandise such as first-aid kits,
photographic films, coffee mugs, and Barbie dolls
 Reward Structure (contd.)
• Aspirational value of reward

– Consumers prefer hedonic goods as opposed to utilitarian goods

when receiving a gift or a LP reward

• Mercedes Benz’s LP makes it possible to transform points against a

flight in a MIG 29 combat aircraft

• Neimann Marcus, the US luxury retail chain, gives out each year a new
list of “wow and cool” rewards. These unique rewards include a world
famous photographer to come to a customer’s home for taking pictures
 Reward Structure (contd.)
• Rate of rewards

– Ratio of reward value (in monetary terms) over

transaction volume (in monetary terms)

– How much a consumer is getting in return for

concentrating his or her purchases
 Reward Structure - Timing of
rewards
• Timing of Rewards

– The longer the timing to build up to a certain reward

level, the greater the “breakage” (the amount of
rewards that are never redeemed)

– Customers build up assets that function as switching

cost
 How to Measure Customer Loyalty
1. Customer Retention Rate
2. Negative Churn
3. Net Promoter Score®
4. Customer Effort Score
5. Purchase Habits
6. Referral Traffic
7. Social Media Mentions
Steps in Developing, Implementing, and
Controlling a Loyalty Program
1. Outlining LP objectives
[Link] a Budget
3. Determining LP eligibility
4. Selecting LP Rewards
5. Considering partnerships
6. Building an appropriate Organisation
[Link] and maintaining LP Database
[Link] internal DW and DM capacity
9. Evaluation success/failure of LP
10. Taking corrective action
 Drivers of LP Effectiveness
LP Benefits to
Demand side: Organization
Attitudinal
Loyalty [Link],
positive WOM!,
Community,
LP Design Demand side: True Loyalty
Characteristics Behavioral
Loyalty 2. Efficiency
Profits:
Greater SCR*
Supply side: or retention
Cost of
Loyalty 3. Effectiveness
Customer Characteristics Program Profits:
Market Characteristics Better value
proposition
Firm Characteristics through learning

4. Value
Alignment
!Word-of-Mouth
*Share of Category Requirement
 LP to Achieve Competitive Advantage:
CRM at Work: Tesco
• Launched the first LP in British supermarket industry in 1995 called Club Card ;
relied on incentive aspect of the loyalty scheme

• Successful in capturing both market share and share-of category requirements in

subsequent years

• Later established segmentation scheme of its customer base

– Sends 80 different versions of its mailing to members and publishes four versions of its
clubcard magazine
– Offers tailored cards to students, families, top customers, seniors, etc

• Aligned its LP offering closely with the specific members’ needs as opposed to
giving out general incentives e.g. Tesco’s Baby club

• Tesco merges information on customer transactions within Tesco’s website and

with point of sale data to customize its product offerings and communications
CRM in B2B Markets

1
 B2B
activities are
beyond the B2C
scene of B2C marketers
experience are learning
Upstream from B2B Public
interorganisa procurement
tional as % of
trading national
economies.
11-22% of
GDP
Purchasing
B2B
of public and
exchanges
pvt org are Significance of
have greater
huge. B2B market
impact on
people’s lives
than B2C
 Supplier of materials(steel Upstream supplier
makers)

Purchaser of inputs used in OE/Direct supplier

making parts (engine makers)

B2B
Purchaser of inputs used in
marketing Manufactures
making finished cars(Ford,Toyota)

Car Dealerships(Franchisees,
Downstream dealer
showrooms)

End user of Cars (b2b,consumer) Car Consumer

Typical supply chain for Cars

 B2B face of Cargill
• We buy, trade, transport, blend, mill, crush,
process, refine, season, distribute around the
clock, around the globe. The firm's product
end up as flour in bread, wheat in noodles,
corn in tortillas, oil in salad dressing, and the
meat on people’s tables.. .Yet Cargill has no
consumer face.
 Realities of Business Markets
• Retaining customers in business markets isn't
just about keeping them in the fold;
companies must also develop relationships
with customers and grow their loyalty over
time. Unfortunately, more than 80% of
companies use satisfaction scores to monitor
customer loyalty.

5
 TM……………………………..RM
• Single sales to customer retention.
• Short term timing to long timescales.
• Product quality to interaction quality.
• Little to high emphasis on customer service.
• Discrete customer contact to continuous
contact.
 Relationship Ladder of loyalty
• Prospect- somebody persuaded to do business
• Customer- done business, once.
• Client- repeat business, neutral.
• Supporter-positive towards vendor.
• Advocate- actively recommends
• Member- great affinity, truly loyal
• Partner- mutual partnership
 B2B RM Framework

Communication
Customer service

Committment

Mutual
Benefit
B2B RM
Trust

Long term perspective.

 Core elements
• Trust
Willingness to rely on an exchange partner in whom
one has confidence
• Commitment
One partner’s belief that an ongoing relationship is
so important that it deserves maximum efforts to
maintain it
 One company that has successfully implemented such
a process is Siemens Information and Communications
(IC). On the basis of a systematic corporate account
management (CAM) program, Siemens IC managed to
transform its organization from an internally focused,
Executive engineering-driven firm to a customer-centric, highly
responsive global company. Applying Siemens’ learning
Engagement can help firms develop a more systematic, interaction
@Siemen’s between senior executives and their counterparts at
customers’ organizations. What’s more, the senior
executives’ actions will significantly accelerate the
business growth rate – an effect ‘‘executive growth
factor”.
 • David Macaulay, President of Siemens IC’s
corporate accounts, took charge of the company’s
strategic customers in 2000, he knew that
unifying the various divisional and national sales
interfaces into a single team and providing
accelerated sales growth, while still improving
Orchestrating profit of course, was a daunting task.
Growth
• 2004, Siemens’ Corporate Account Management
efforts organization has grown by 55 percent. Customers
with which senior executives were systematically
involved doubled their revenues.

• During the same time, the number of strategic

accounts was streamlined by 25 percent, program
costs were slashed by more than half, and
profitability enjoyed significant yearly growth
within the assigned accounts.
 Payoffs

• Increased ease of doing business.

• Reduced customer expenditures
• Greater access to Siemens’ resources
around the world
• More customer-focused relationship
(i.e., shifted from mainly pursuing
product portfolio
• Customer-specific innovations, which
have led to a stronger competitive
position.
 • Top executives making regular planned
sales calls on top executives from
customers.

• The whole project TERP took time and

Focus areas after implementation impact went
beyond the scope of the project.

• Named as ‘‘Siemens One’’ initiative.

 Barriers to EE
• Misaligned priorities/too many agenda.
• Infrequent or no meets.
• Senior management often willingly stays away.
• Considered time consuming exercise and
unpleasant past may come up.
 Bad example of EE
• CEO of a major company reports that he might be
willing to meet customer executives more frequently.
But, he said, he would never, ever report his customer
contacts to the responsible account manager. He felt
it was important to maintain independent sources of
information. And, by the way, he needed to discuss
issues the account manager was not entitled to know.

• Obviously, the limitations for growth sometimes lie in

the personalities of the executives
 Good example
• But there are also good examples, as the case of the
CEO of another major company championed the
implementation of the executive engagement program.
Within a year, he had personally visited the CEOs of all
his strategic customers, accompanied in each case by
the responsible account managers. His example of
personal leadership not only strengthened the position
of the account manager both internally and externally
but also forced his direct reports to come in closer
contact with customers.
When Siemens learned, for example, that one
customer was complaining about the
complexity of dealing with 35 or more
Siemens representatives worldwide, the
Siemens IC account manager, along with the
various divisional Siemens employees serving
the account, helped create a single, customer-
specific global contact plan.
 Cocreation
On the innovation side, Siemens realized a joint
development with its strategic customer
Lufthansa to provide a wireless LAN for the
airline. As was covered extensively by the
press, the responsible account manager
recently flew with the Lufthansa corporate
information officer from Washington to
Frankfurt to demonstrate that their notebooks
worked in a wireless LAN environment
 Industry bandwidth
• Continuum of buyer-seller relationships
• Transactional, Value-added & Collaborative exchanges

The Working Relationship Spectrum

 Spectrum of Buyer-Seller Relationships
Buyers and sellers craft various relationships in response to:
a) Market conditions
b) Characteristics of the purchase situation
 Transactional & Collaborative Working Relationships

Pure (a) Industry Relationship Bandwidths Pure

Transactional Collaborative
Exchange Exchange
Medical Equipment
Hospital Supplies (e.g. imaging systems)
(e.g. surgical gloves, syringes)

(b) “Flaring Out” from the Industry Bandwidth

Pure Pure
Transactional Collaborative
Exchange Exchange
Hospital Supplies

A B C D

SOURCE: Adapted from James C. Anderson and James A. Narus, “Partnering as a Focused Marketing Strategy,” California Management Review 33 (spring
1991)’ p. 97. Copyright © by the Regents of the University of California. Reprinted by permission of the Regents.
 Supplier firm strategy
• Flaring out by unbundling strategy.
• Flaring out by augmenting strategy.
 Flaring Out Strategy
• ‘Flaring out’ strategy (Fig b) states that the
seller can either unbundle (point A), that is,
reduce the service associated with a lower
price (transactional in nature), or

• Augment by adding more services to the core

offerings (point D) which adds cost to the
services. This is collaborative in nature.
• Flaring out by augmenting strategy
PENSKE’S LEASEWAY AUTO CARRIERS flared out to create
collaborative offerings in a market populated with transactional
offerings. As a part of its service to GM, Leaseway hired Op
Researchers to build a model for GM’s physical distribution
requirements. Based on this model Leaseway designed a
program to help GM schedule shipping routes, select car models
for shipping and determine optimal sequence for offloading
cars at GM dealers to minimize potential damage and delivery
time.. The computer model is highly interfaced with GM’s
inhouse computer systems and can be utilised to troubleshoot
emergency problems. Although Leaseway has a 30 day contract
with GM, that contract has been in effect continuously for over
35 years. Leaseway remains a major supplier of trucking services
to GM
 Transactional Exchanges
The business market includes items like:
• Packaging,
• Cleaning products or
• Commodity-type products or service activity
where bidding is employed.
 Collaborative Exchange
 Occurs when alternatives are few, market is
dynamic, the purchase is complex and the price is
high
 Features close information, social, and operational
linkages, as well as mutual commitments
 Switching costs are extremely important to
collaborative customers
 Trust is the key and it exists when one party has
complete confidence in their partner’s ability and
integrity
 Why Retain Loyal Customers?

Established customers buy more.

Cost of serving loyal customers declines.

Less expensive than acquiring new customers.

 Caselet
• Kanthal a heating wire manufacturer, learned that GE’ Appliance
Division was one of the most unprofitable customers. A customer
order that normally would cost Kanthal $ 150 to process cost more
than $600 from GE because of frequent changes, expedited
deliveries and scheduling adjustments. A senior manager at
Kanthal suggested GE that such order changes were turning costlier
to both. After a quick internal review GE corrected internal
inefficiencies and awarded Kanthal with largest contract in the
firm’s history. The contract involved a surcharge for any change GE
made in an existing order and established a minimum order size. By
isolating the true cost of serving GE, Kanthal converted an
unprofitable relationship to a profitable one and provided further
value by helping a key customer reduce costs.
• Flaring out by augmenting strategy
PENSKE’S LEASEWAY AUTO CARRIERS flared out to create
collaborative offerings in a market populated with transactional
offerings. As a part of its service to GM, Leaseway hired Op
Researchers to build a model for GM’s physical distribution
requirements. Based on this model Leaseway designed a
program to help GM schedule shipping routes, select car models
for shipping and determine optimal sequence for offloading
cars at GM dealers to minimize potential damage and delivery
time.. The computer model is highly interfaced with GM’s
inhouse computer systems and can be utilised to troubleshoot
emergency problems. Although Leaseway has a 30 day contract
with GM, that contract has been in effect continuously for over
35 years. Leaseway remains a major supplier of trucking services
to GM
 Strategic Sourcing/Procurement

H
Supp
ly
diffic Customized Strategic
ulty
solutions
and
com
plexit
y
Non Commodities
Strategic

H
L Rupees expenditure
 Extended Enterprise alliances
• DaimlerChrysler develops, implements, and
monitors commodity and supplier strategies for all
main automotive commodities worldwide material
or product groups such as flat glass, aluminum
body panels, door trims, or hydraulic brake
systems.

• Deciding on the type of relationship is an

important part of the company’s global
procurement and supply (GP&S) strategy process.
Management of Relationship Portfolio
• How many suppliers to have for each material or product category?

• The supplier mix (parts ,component module and system suppliers in

portfolio)

• the regional distribution of suppliers that is, the ratio of domestic to

foreign suppliers and their distribution
in economic regions (dollar, yen, euro)

• supplier risk — that is, the risk of one or more suppliers

in the portfolio not being able to provide the expected input.

the proportion of ISO 9000-certified suppliers

 The decision is based on criteria

1. share in value-adding costs

2. dependency on supplier’s technical know-how
3. buyer’s own know-how about specifications
and design for a given technology or product
4. number of possible suppliers
5. costs of changing to another supplier, and
general barriers to switching
6. supplier’s negotiating power
 Extended Enterprise – Daimler
Transaction Coordination Cooperation Alliance
(market-based (selective (selective (strategic
competition) competition) partnership) partnership)
Operational types Strategic types
Relationship Data Exchanging Transferring Building up to
based on information know-how specialist
knowledge
Relationship lasts Transaction Annual contract Series life cycle Life cycle and
for beyond
Extent of joint Suppliers not Integrated into Integrated into Several depts
commitment integrated NPD to limited NPD to limited integrated, joint
extent, via well- extent, interfaces NPD, investment
defined defined jointly in joint assets
interfaces
Examples Office supplies Mouldings Exhaust systems Fuel cells
 Systems Buying & Selling
The Indonesian government requested bids to build a cement
factory near Jakarta.

• An Australian firm made a proposal that included choosing the site,

designing the cement factory, hiring the construction crews,
assembling the materials and equipment and turning over the
finished factory to the Indonesian government.

• A Japanese firm, in outlining its proposal, included all of these

services, plus hiring and training the workers to run the factory,
exporting the cement through its trading companies, and using the
cement to build roads and new office buildings in Jakarta. Although
the Japanese proposal involved more money, it won the contract.
 Switching Costs
• A major consideration before changing from one supplier to
another is the switching costs.

Investments include:
1. Money
2. People
3. Training Costs
4. Equipment
5. Procedures and processes
How are CP,
CLV and CE
related?
The Whale Curve
 Whale Curve & Profitability
• 20/80 Rule says “20% of customer provide 80%
of sales

• Whale Curve reveals:

– 20% of customers generate 150–300% of total profits
– 70% of customers break even
– 10% of customers lose from 50-200% of total profits
– Leaving company with 100% of total profits
 Customer Profitability
• Accurate tracing of costs to individual
customers
• The profitable few
– Large customers – most/least profitable, seldom in the
middle
– Low cost-to-serve customers – profitable
– High cost-to-serve customers – unprofitable, unless paying
premium for specialised services received
 High- vs. Low-Cost-to-Serve Customers(MSDA)
High-Cost-to-Serve Customers Low-Cost-to-Serve Customers

Order custom products Order standard products

Order small quantities Order large quantities

Unpredictable order arrivals Predictable order arrivals

Customized delivery Standard delivery

Frequent changes in delivery requirements No changes in delivery requirements

Electronic processing (EDI)
Manual processing
(i.e., zero defects)

Large amounts of presales support Little to no presales support

(i.e., marketing, technical, and sales resources) (i.e., standard pricing and ordering)

Large amounts of post-sales support No post-sales support

(i.e., installation, training, warranty, field service)

Require company to hold inventory Replenish as produced

Pay slowly (i.e., high accounts receivable) Pay on time

Source: Robert S. Kaplan and V.G. Narayanan, “p. 8. Measuring and Managing Customer Profitability,” Journal of Cost Management 15, No. 5
(September/October 2001):
MSDA expenses distribution in CLC

Acquire M S D A

M S D A
Develop

M S D A
Retain

S D A
Exit
 Case in Point

Airline industry uses frequent flyers as customer segmentation

and design royalty plans to reward those frequent flyers. IBM
conducted a study1 on airline’s customer relationship
management (CRM) in the USA and discovered in one sample
that top 1000 customers (by revenue) accounted for 60% more
revenue than its top
1000 customer by mileage. In another case, IBM noted 15% of
customers accounted
for 40% of revenue. The study pointed out that high-value
customers are more
important than large mileage (loyal customers)
Measuring Customer Profitability

• Activity-based costing (ABC) is a technique that

allocates the cost of performing various services
to each customer (customer-specific costing).

• Through Customer Relations Management

(CRM) programs, one can relate revenues and
costs to each and every activity.
 Customer Cost categories in ABC
• Transaction specific cost
• Customer specific cost
• Support costs
• Cost to serve (CTS) is the sum of total pre sale,
order related distribution and post sale service
cost required to maintain an ongoing
exchange relationship.
 Customer Profit
• Anticipated (or actual) profits to be generated
from doing businesses with the customer. It
can be direct and indirect customer profits.
Direct customer profit (DCP) is a financial
benefit contributed directly from the
customer, e.g., profits earned from sale
transactions. Indirect customer profit (ICP) is
the imputed financial benefit(s) derived from
the customer due to referrals.
Customer profit (CP) = direct customer profit
(DCP) + indirect customer profit (ICP)
 CP/CTS Ratio
• Therefore, CTS should be measured in terms of
customer profit (CP).
• Firms should always ask: how much profit the firm can
earn for each rupee/dollar of CTS spent?
• Linking profit to CTS forms a rational basis for customer
performance evaluation.
• CP/CTS ratio indicates the profit to be earned on each
dollar of CTS .
• High CP/CTS ratio means high efficiency of CTS in profit
generation, whereas low CP/CTS ratio means the
contrary.
• Negative CP/CTS ratio?
Customer Performance Management
Grid(CPMG)

Yardstick to manage customer performance

Four customer clusters
• Value exploiters: These are customers who are causing financial losses , and value
to the firm. They are in the danger zone of the grid. The firm should pay close
attention to these customers especially those customers who are farther away
from the left (zero). Firms provide high CTS but with substantial loss.

• Value defenders: These customers are clustered around the standard benchmark.
They should be the majority in the customer portfolio. These customers should
deliver the anticipated performance.

• Value savers: These customers are located at the left hand side of the standard
benchmark (safety zone) and to the left of the red dotted line. Profits are secured
from these customers simply they do not demand service. However, they are
price-sensitive and less loyal to the firm.

• Value Champion These customers are located at the right hand side of the safety
zone. They contribute high CP/CTS ratios. They are high value customers - the kings
of the firm. They deserve privileged rights and top attention. These are the
champions that the firm should invest more and explore further mutual interest in
business endeavors. These customers may demand high service level. However,
they can pay higher prices for extra service
 H

Size of
wallet

L H
Share of wallet
 Action Strategies
• Hold: Maintain the status quo and keep the
CP/CTS as it is.
• Invest: Increase cost investment in customers
and allow a slight decrease in CP/ CTS.
• Reduce: Reduce cost spending with the given
price level and anticipate an escalation of CP/CTS.
• Exit: Freeze further cost spending, prepare for
exit, and disapprove sale transactions with
negative profits
 Options to raise Customer Profit
Manage each customers CTS to a lower level.
1. Establish surcharge or reprice expensive CTS
activities
2. Reduce services.
3. Introduce new product and service lines.
4. Raise prices.
5. Offer customer profit positive service level
options. Upsell/cross sell
Customer Profitability

High

Passive Costly to service,

Product is crucial but pay top
Net Margin Realized

Good supplier match dollar

Price-sensitive but Aggressive

few special Leverage their buying power
demands Low price and lots of
customization
Most challenging
Low
Low High

Cost-to-Serve

SOURCE: From “Manage Customers for Profits (Not Just Sales)” by B.P. Shapiro et al., September-October 1987, p. 104, Harvard Business Review.
 Firing the Customer
• We must try everything to make a customer
profitable before firing them.
• If after trying, and the customer continues to be
reluctant to change, and the relationship remains
unprofitable, we can say outright, “YOUR FIRED!”
but…
• There are better approaches. We can let customers
‘fire themselves’ by raising our prices, reducing or
charging more for services, eliminating discounts,
etc., until they become profitable or find another
distributor.
 Network
• Situated/embedded in a network of relationships
• Networks improve value and cut costs for the
customers
• Change in mindset: From control to
interdependence
• Extends capabilities beyond the boundaries of the
firm.
 Value Net

The Value Net Source: Brandenburger and Nalebuff, 1997

 Evolution of Networks
• Relationships → channels → supply chains →
networks
• Marketing & purchasing distinction is
meaningless - seamless, iterative process
• Purchasing can overlap with product
development, marketing planning
 Supply
chain Supply
network

Inter-
organisational Marketing
Relationship Channel
Industrial
Network

Distribution
network
 Network Industries
• Telecom
• Broadcasting
• Finance-ATM, bank, payment systems, clearing
houses
– Exchanges – stocks, derivatives, commodities
• Airlines
• Multi-sided platforms(MSPs) –Uber, Alibaba
mediate user interaction, differ from linear
control of activities across value chain.
 Network Industries
• Telecom
• Broadcasting
• Finance
– ATM, bank, payment systems, clearing houses
– Exchanges – stocks, derivatives, commodities
• Airlines
The Media Industry - 2001
The Media Industry - 2006
 Alliances
• Non-competing firms
– International expansion – Renault & Diesel Nacional
(Mexico)
– Vertical integration – Aerospatia & Thomson
– Diversification – BMW & Rolls Royce
• Competing firms
– Shared supplier alliance – Volkswagen & Renault
(gearbox)
– Quasi-concentration alliance – BAE, EADS Systems,
Alenia (Tornado fighter)
– Complementary alliance – Tata & Fiat (distribution)
Role of IT in
CRM
Biswajeet Mahapatra
 Introduction

Biswajeet Mahapatra

25 + years of experience in the industry. Worked in 1995 – Btech Engineering from Saurashtra University
companies like Gartner, HP, Oracle, Novell and Baan. (Gold Medalist)
1 Have been a CEO of Trasers, CTO of SAPG, CEO and
3 2011 – PGDM – PT XIMB (Gold Medalist)
Founder – [Link]

Built startups, advised CXOs across the globe on Email: mbiswaje@[Link],

various aspects of Technology, & Processes, [Link]@[Link]
2 implemented ERP projects, sold Applications and 4 Linkedin :
research, published more than 100 papers [Link]
Agenda
01 CX and its importance
CX as a Superset of CRM, CEM Tools, CEM Maturity Model

02 CRM & its Linkage to CX

Basics of CRM, timeline, Maturity Model, Gartner Magic
Quadrant, Key Players, Functions and Feature & Pricing.

03 Social CRM & Implementation

challenges
Using Social CRM in Business, Setting up Whatsapp /
Instagram/ FB Business Channels

04 Blockchain in CRM
Provides enhanced security, data cleansing, and better
transparency
 Customer
Experience
And its Role in the Enterprise
CX and Customer Support
Best in class companies optimize customer journeys and not touch points
CRM and CX relationship
 CEM & CRM comparison

What When How Monitored Who uses the info. Relevance

Captures & distributes Surveys, VoCs Locates places to add

Business or functional offerings in the gaps
what a customers At customer touch research, targeted
CEM

leaders to create between expectations

thinks about the points studies, observational
better CX & experience
company research

Captures & distributes Drives cross selling, by

Point of Sale data, Customer facing group,
what a company After there is a bundling products in
CRM

market research, such as marketing,

knows about a customer interaction demand with ones
website click through sales, field marketing
customer that aren’t

Customer experience, is your customers’ holistic perception of their experience with your business or
brand.
Why is Customer Experience Important

Compete on Basis of CX 89%

Companies plan to compete primarily on the basis of Customer Experience - Gartner

Buyers are willing to pay more 86%

For the CX but only 1% feel that the vendors consistently meet their expectations - Forbes

Increase in Profitability 25%

Can be achieved by multichannel integration, as a key component of Customer Experience - Oracle

Customers feel CX is important 89%

From a Brand Loyalty perspective - eConsultancy

Customers stop interacting 86%

And buying from businesses where they had a bad customer experience – Harris Interactive

CX is more important than Price 64%

People feel Customer Experience is more important than price in their choice of Brand. - Gartner
Why improve CX
What impacts CX ?

Measuring CX:

•Customer Effort Score (CES)

•Net Promoter Score® (NPS)

•Customer Satisfaction Score

(CSAT)

•Time To Resolution (TTR)

Ideal CX measurement system puts journeys at center and connects them
with other elements
Customer Experience needs to be mapped throughout the customer journey.
A typical Customer Journey Map – When buying software online

Phase Awareness Research Purchase Install Use Support Upgrade / Discard

C. Activities Friends, Browsing • Compare & evaluate • Look at various • Download online • Run files • Locating place to download • Choose a new upgraded version
online, Ads, social options/ alternatives online and offline • Install from USB/ CD • Use • For Installation • Forced to upgrade
media • Look for how and options • Usage related issues • Move out finding a better product
where to buy • Uninstall/ reinstall issues • Don’t need it anymore.
C. Goals No Goals at this Find the best suited Order effortlessly Download effortlessly Use as intended Resolve issues smoothly • Move to a better product
point product Re-install effortlessly without any issues • Remove any irritants or issues

Touchpoints Social Media, Ads, Web, Mobile, social Web, Mobile, Store Laptop/ mobile/ server Laptop/ mobile/ Support/ Call center, online Support/ Call center, Online web
Word of Mouth media, WOM server portal portal

Experience 5

Business Increase awareness Increase website visitors Increase online sales Readily available Product matching Increase customer satisfaction Increase conversion rates, turn
Goals online and conversion rate products to download expectations rate, Reduce waiting time, First customers to advocates
and install Call Resolution rates to be high

KPI Number of People Analytics Score, new Shopping cart value Customer installation Unaided customer Customer Service Success Rate, Conversion rate, retention rates
Reached website hits conversion rate success rates usage rates FCR time

Org Create Marketing Create Marketing Optimize Purchase Smooth Installation, Build simple and Create responsive customer Create awareness about new and
Activities content both online campaigns and content cycle, simplify the Proper guidelines and easy to use support and call center, simplify upcoming products, create
and offline both online and offline buying process instructions available, call products, self process to reach out to retention benefits programs.
center numbers explanatory customer support
provided processes

Responsible Sales and Marketing Marketing and Sales Product Development Product Customer Service and Support Customer Service, Support and
Communication and Support Development Marketing and Sales
CX encompasses both digital and physical touchpoints
Categories of CX tools - Bain
Direct Relation between tool adoption & financial performance
Adoption of CX tools
 Customer
Experience
1. Real life examples
2. Maturity Model
3. Application features
Airlines – Emirates/ Indigo and SpiceJet
Spicejet
Emirates Airlines and Indigo
BSNL – Money Return through PMO – Manmohan Singh

BSNL Follow up PMO Office

Landline connection in Hyderabad
For 2 years Wrote all details

No response after writing many mails

We had a Landline connection in to BSNL Hyderabad, talking to various PMO office had an online Redressal
Hyderabad. When we moved to departments Forum wherein anyone can post their
Bangalore, we surrendered it and were issue with all details. I did that. Did not
expecting INR 3000 deposit back expect anything.

Call from BSNL Money Returned

BSNL Hyderabad Within a week of the call

calls
After a month BSNL Hyderabad Not only I got a cheque from Hyderabad
called me and apologized. They also BSNL but they also called up to ensure I
mentioned they were called up by have received the money
PMO and I should not have gone
that far.
Gas Agency – HP Gas Agency – Maruthi Gas Bangalore

1. Gas Agency 2. Gas Booked 3. Threatened

Maruthi Gas agency (HP) in
Automated IVR Booking Threatened by Agency
Bangalore
Booked the Gas through phone but
Regular Client of Maruti Gas. But was never delivered, again rebooked, On a personal visit by my wife, the
cylinder was never delivered on time. same issue. Called the agency they delivery boy personally threatened and
Delivery boy use to resell at higher said it was already delivered twice, said no one will ever deliver to our
price now cant book again house. We can do whatever we want

4. Wrote to 5. Gas Delivered

Chairman
Mail to Chairman Same Delivery boy delivered

Frustrated I wrote to the Chairman Within one hour of the mail, the same
of HP. Immediately within 10 mins delivery boy was at our doorstep fuming
his PA called me and understood and grunting. He delivered the cylinder
the situation without any extra charge and went .
LG – Microwave

1. LG 2. Complained to LG 3. Deccan
Chronicle
Microwave bought
Generic Response Published in Newspaper

They sent technician who could not

Got a Microwave for INR 18K but figure out, then they started giving Published our experience in Deccan
whenever we tried to make Pizza it excuses need some other part, Chronicle with all details
stopped. Realized it was not going waiting on factory, then started
above 180 degree, avoiding our calls

4. Immediate 5. Replaced
response
South India Head at New Microwave
home apologizing
Immediately got calls from LG, South After 3-4 days they sent a new
India head was at home apologizing, Microwave with a sorry note.
Technician checked our system and
said Microprocessor needs
replacement. and took it away.
Trident Gurgaon – Oberoi Group

Regular Visitor Not up to mark Feedback

Exceptional Service
In one visit Gave a rating of 3

Whenever I used to order room I needed lunch on time as was

rushing out for a meeting, Not only On their feedback mail I gave a rating
service, if it was late by even 5 mins
food did not come on time, I of 3. Normally I used to give a rating of
they used to call in advance and either
reminded them many times, and after 5 but this time due to this experience I
make the meal free or send some
it was late I could hardly finish it gave a 3
complements

Call Back Free Stay

After I came back Offered Free Stay

to Dubai
Oberoi called me up to understand the
3 nights free stay with them, when I visit
reason and I gave them a proper
next time, I never availed the offer but
explanation. They profusely apologized.
this left a good taste about them.
Not just that their manager also called
and sent a sorry letter.
Northwest Airlines

Return Flight No Help Hotel issues

Amsterdam - Mumbai
No information Did not allow anyone

Morning flight 10:30am, boarded the We were left in the airport for 2 more
hours with no information, then asked to Hotel had rooms but no information,
flight, all normal, went to the runway,
go through immigration again and go to so not allowing anyone. I checked in
came back saying AC issue and it went
the arrival gate without luggage, then personally and slept. No information
on multiple times, till we were
asked to go to a hotel nearby about flight
deplaned at 2:30 pm

Chaos Next day Fight

No information Company stopped all travel

However we went to the airport and

Fought with them, got an apology and
stayed there. Flight left at 12:30 pm, one
free ticket to London, never used, so
mother was arrested and one old man
next trip they gave 2 days free stay in
threatened. We reached Mumbai with half
stopover in Dubai
of the luggage missing,
Axis Bank

Account Job Done ? Forex not allowed

Opening
Smooth with lot of help
Account Created Access denied

Relationship manager came home Account was created, I go the cheque

book and all details. However had to I had some transfer from abroad but
with all the documents to get
follow up with the RM to get the could not access. Asked branch who
signature. He in-fact made the letter
online details. I was not told of the 1 put me to the call center, who again
head and the stamp.
Lakh limit which was a drawback put me to branch. RM was useless

No response on Resolved after

Social Media fight
Careless Bad experience

Wrote to MD, wrote on Twitter, on

It got resolved after 9 days, with lots of
Linkedin, no response. Kept following with
fights, mails and escalations. I have
RM , lame excuses. Not resolved for 9
started pulling out my funds from Axis.
days. Threatened to leave. But did not
care.
Learnings from the Case Studies

Majority of the companies do not care about the customers and their journey. They are only there to make quick money

Customers have to be empowered in order to get their rightful dues. Use all the medium to get the best services

Very few companies have actually started looking at customer satisfaction, but we are still very far away

Social Media has helped customers in making their voices heard. Yet many companies don’t care

CX & CRM have remained either an application issue or a senior management initiative which have never been followed
through
CEM Maturity Model
Maturity levels at which organizations are in

36% - Level 0
Level 1
Of Organizations are not even at Level 1
Fragmented Focus

19% - Level 1
Customer experience is important but funding and
support from Upper Level is minimal
Level 2
VoC Validated
22% - Level 2
CX is important & initial programs are put in place – but the effort is still
not connected to the profitability of the organization
Level 3
11% - Level 3 Engaged Executives
CX is critical to the company & it is understood how it is connected to the
end results : Yet CX is for the sake of CX

8% - Level 4 Level 4
CX is the core of company’s strategies and objectives Profit Maximized

4% - Level 5
Is the company’s DNA, essence of anything and everything
the company does
Level 5
Cultural Change
CX – Key features and Tools

Key Features Tools

• Customer Segmentation IBM Tealeaf and Customer Experience Suite

• Multi-Channel Data collection
• Knowledge Management Adobe Experience Manager
• Dashboard Zendesk
• Analytics
• Negative Feedback Management Qualtrics XM
• Predictive Analytics
Bitrix 24
• Sentiment Analytics
• Survey/ Poll Management Freshdesk
• Text Analysis
Salesforce

Global Market Size and Growth

Global customer experience management market size was valued at USD 8.5 billion in 2020 and is expected
to register a CAGR of 17.7% from 2020 to 2027
Thank You
Social CRM
Social Media in CRM
Most used social platform - Hootsuite
Oct 2021 – Reasons for using Social Media - Hootsuite
Jan 22– Use of social media for brand research
Social Media Platforms used by Age group and Gender
Benefits of Social Media

Telecoms provider BT says 40% of its customer feedback originates on Twitter, and its story is far from
unique.

Customer Care Service Marketing

Deliver customer support via the social media networks your Increased engagement and deeper relationships with customers.
customers are using;
Greater exposure in the places where your audiences spend their
Interact and engage with customers in real time time

Talk to each other so that customers get the best help Increased web traffic and conversions and higher search rankings

Monitor social media for complaints and resolve issues quickly More efficient marketing budgets with higher returns

Find and reward brand advocates and customers who help others Faster marketing campaigns with better targeting
Social Media Strategy Canvas
Social Media Objectives

Business Objectives Social Media Goal Metric(s)

Grow the brand Awareness Followers, shares,
Impressions, etc
(these metrics illuminate your current and potential audience)

Turn customers into Engagement Comments, likes,

advocates mentions, etc.
(these metrices show how your audiences are interacting with
your content)

Drive leads & sales Conversions Website clicks, email

signups, etc.
(these metrics demonstrate the effectiveness of your
social engagement)

Improve customer Consumer Testimonials, social media

retention sentiment, etc
(these metrices reflect how active customers think & feel
about your brand)

Inspire customers Advocacy Referrals, influencer

activity, NPS, etc
How CRM evolved into Social CRM

CRM Social CRM

Specific Departments Everyone

Who

Company Specific Processes Customer Centric Processes

What

Customer Defined Dynamic

Where Defined Channels
Channels

When Set business times Customer defined times

Why Transactions Interactions

How Inside Out Outside In

18 Use Cases of Social CRM

Social CRM Insights

Services & Customer

Marketing Sales Innovation Collaboration
Experience
Support

Social Social Social Innovations Collaboration Seamless

Marketing Sales Support Insights Insights customer
Insights Insights Insights experience

Rapid Crowd Enterprise

Rapid Rapid
Social Sourcing Collaboration VIP
Social Social Sales
Response R&D experience
Marketing Response
Response
Proactive Peer to
Social Social Lead Peer
Campaign Generation unpaid
Tracking armies

Social Event
Management
5Ms of Social CRM – Baseline Processes
Why is it Important Resources and Requirement What they always don’t tell you Vendors to Watch out for

Monitoring Provides listening capabilities to filter out Brand monitoring software that monitors Use tightly scoped keywords to define the Biz360, Buzzmetrics (Nielsen),
noise from the social sphere. Encapsulate and scrapes the social web, has team search parameters. Yet don't go too tight or Cymfony, Radian6, SAS Institute,
both metrics and measurement. Extract based workflows and connects to you miss key opportunities – going too wide Scoutlabs. Visible Technologies
insights making measurement more existing CRM databases. results in too much noise
effective.

Mapping Mapping solutions identify relationships. First, find existing public profiles to The trick is to get them to map their profiles Facebook (profiles), Gigya,
Due to lack of single identity, companies match, like LinkedIn and Google for you. Entice them with rewards, better Google (profiles), OpenID,
must link social profiles to customer records profiles. Additional database fields must service, and special deals in an opt-in SalesView, Spredfast, Sprinklr
to provide a holistic experience. be created that match customer records manner
to social profiles
Management Management systems bring CRM Tie back the social world and channels Companies must develop a crises plan for CoTweet Infor, KANA, Oracle,
processes to life. Without a purpose, social to existing innovation, marketing, sales, the worst possible scenarios and conduct RightNow Technologies, SAP,
data is unactionable. Business rules and support and service processes. Triage internal fire drills. Expect the worst to SAS, SugarCRM
processes are needed to triage the right profiles to create prioritization happen on Friday afternoons when
information to the right teams in real-time. frameworks. management is not available
Middleware Middleware technologies glue the social Apply technologies such as complex Develop business rules based on your Boomi, D&B Purisma, IBM,
world to the enterprise. Social CRM event processing, business process unique processes. They will include: Informatica, Oracle, Pervasive,
connects to nearly every customer facing management, business rules, workflows, complex event processing, and Progress Software, SAS
system. Data will have to seamlessly flow workflows, data integration, and enablement technologies to respond. DataFlux, SOA Software,
between systems, and advanced process orchestration among disparate Software AG, TIBCO
dashboards that provide intelligence. systems.
Measurement What you can’t measure you can’t improve, Advanced dashboards that provide Rely on data to provide benchmarks, IBM Cognos, Information
therefore organizations must be able to intelligence. Measure based on trending, prediction, and sentiment. Bring Builders, Microsoft, Oracle
benchmark what’s been done. business objective like improved the insight into actionable state. Hyperion QlikView, SAP
satisfaction, spread of message. Business Objects, SAS Institute
Social Media Metrics
Measure Traffic and Conversion
Social CRM measures traffic & conversion rates from social
media platforms. This enables a business to see how many
customers visit sites and how those clicks convert into value.

Engagement
Social CRM enables you to measure not just clicks, but user
engagements with the sites.

Buzz Calculator
Find out what people are talking about you by keeping an eye on
the comments section from your various social posts, blogs,
review sites and other mentions.

Fans and Followers

Use Social Media to convert your followers into fans

Brand Mentions
Social CRM helps measure how many followers are talking about
a company or brand and if those customers are sharing their
experiences via social media platforms.
Social CRM Impact on Business Processes
Social CRM Comparison chart

Product Best For Pricing starts at

Salesforce Social Studio Best CRM for social media $1,000 per month, billed
overall annually
HubSpot Marketing Hub Top social customer $45 per month
relationship management tool
Zoho Social Great free CRM for social $10 per month, billed annually
media management
Sprout Social Best CRM for social media $89 per user/month, billed
marketing annually
Nimble Good social media CRM $19 per user/month billed
software for startups and small annually
business
eClincher Good social CRM tool for sales $59 per month for 1 user
teams
Social CRM Process
Social CRM Architecture
Social CRM Computer System architecture
CONTENT ENRICHMENT
Human Information
INTERACT
INQUIRE
Unstructured Unstructured Profiles
Query
text data rich media
Agents
Hyperlink
Social Media Text
Images Communities

Blogs Videos Expertise Location

News feed Audio files INVESTIGATE

IMPROVE
Twitter Phone calls Structured Analysis
Classification
Facebook Automatic Query • Sentiment analysis
guidance • Feature classification

Parametric Search Automatic language

Chat detection
Email Term analysis
Transactional Data Categorization
Machine Data
Documents
Highlighting
Webpages Taxonomy

Cluster Data

Databases ERP/ BI/ LDAP Rich Media

Unstructured • Audio Video Analysis
Repositories
Mail Servers Hadoop
Social Management apps
Hootsuite

What Is Hootsuite?

Hootsuite is a social media management tool with features to help with planning, scheduling, and syndicating
social posts. Key features include automatic scheduling, social media monitoring, performance reporting, basic
task management and more.

Why Is Hootsuite Useful?

Hootsuite can save you time with your social media marketing. Instead of logging into each network and
posting there one at a time, you can manage Facebook, Instagram, YouTube, LinkedIn, Twitter, and Pinterest
all from one place.

Its “Streams” feature can help stay on top of relevant conversations as they’re happening. You can monitor
conversions on different networks from a single dashboard.

Hootsuite also has a helpful Analytics feature for in-depth social media performance reporting. If you run an
agency, you know that reporting the ROI of social media can be tricky. Hootsuite’s Analytics feature helps you
show off your deliverables.
Hoosuite - architecture
Compare Hootsuite and SocialPilot
Hootsuite Pricing
Possibilities of Social CRM including Whatsapp

Enable purchases and bookings through

WhatsApp by integrating your internal APIs to
the WhatsApp API Business Client..
Through WhatsApp, customers can initiate conversations and
Process online payments by providing dynamically
01 ask for support regarding purchase details, delivery updates,
generated payment links through WhatsApp.
etc.
If designed and architectured well,
03 you can seamlessly connect your
existing CRM tools such as

03 01 SalesForce, FreshDesk(or in-house

software) including live chat agents
like ZenDesk to your WhatsApp
05 Transactions & Customer Support

Send purchase invoice and

05
Invoicing
Online
Payments
Business API Client.

bill details as an attachment

through WhatsApp

04
Updates
02 02
04 Navigation and Use NLP to understand the context of user
Dicovery inputs and help them discover relevant
Provide shipment details and
automated updates through products and services by connecting your
WhatsApp search APIs with the WhatsApp Business API
Client.
Whatsapp Enabled Business

Handling customer
Booking an Order requests
Instagram

Change your Insta account into business account and

connect it to you FB page

Create a Product Catalog in FB and tag them to your Insta

posts or stories.

Sign up for Insta shopping and turn on shopping in Insta

app.

Upload pictures in Instagram and tag the products. You can

also create Insta stories.

Insta check-out:
Facebook Marketplace

1. Take a photo of the product you want to sell

2. Enter Product details & choose a category
3. Confirm your location, and sell
How to sell in FB

1. Set up and Account with FB Commerce Manager

Start Selling 2. Click Get started for Facebook

4. Create a Collection

5. Customize your Storefront

6. Publish your shop

3. Do the account and tax set ups

 Blockchain
Implementation
Benefits and Use Cases
Timeline of blockchain development
How does a transaction get into the blockchain
Blockchain technology
Properties if Distributed Ledger Technology
Identity mgmt. using blockchain

ID generated by the service provider – verified by endorser (eg: ID

generated by Airtel and endorsed by Aadhar)

Same Id used to authenticate all services thereby not forcing the

customer to go through registration processes again &again

Blockchain technology is used to verify the identity & do payments

Increased data sovereignty security, and overall privacy

Creating a network of services thereby providing customers better

quality of services. Also enabling IDaaS (Identity as a Service)
Across of Blockchain across Insurance value chain
Blockchain in CRM – Use Cases

Financial Services – Customer Validation

1 KYC (Know your customer) process can be time consuming and

prone to manual errors . Partners – third party, govt agencies,
account managers, financial reviewers

Financial services - Regulatory Reporting

2 Data integrity maintained for all financial transaction. Partners

– regulators and other agencies

Loyalty Programs

3 Integration of Loyalty programs across industries like – hotels,

airlines, coffee shops, food trucks etc. Partners – Multiple
businesses across industries

Insurance Claims Management

4 Create a network of different parties for assessing, processing,

and adjudicating a claim. They can use smart contracts to
automate payout when predefined conditions are met. Partners
– insurer, Claims processors, Garages, Hospitals etc
Applications of Blockchain
Thank You