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CRM Notes
1
...

There was minimal focus on customer relationships
...

This led to a shift from product-centric to customer-centric marketing
...
Definition of CRM
•

•
•

Customer Relationship Management (CRM) is the combination of practices,
strategies, and technologies used by companies to manage and analyse customer
interactions and customer data throughout the customer lifecycle
...

Goal of CRM:
o Improve customer service relationships
o Assist in customer retention
o Drive sales growth

3
...
Example of CRM in Action
•

•

Scenario:
o A person (A) is aiming for weight loss and frequently uses Instagram
...

CRM Process Flow:
o Marketing Team (Instagram ads) → A clicks the ad → Requests a call back
...


o Sales Team accesses the CRM and contacts her → Convinces her to join the
program
...

o Relationship Manager contacts her to:
▪ Check satisfaction levels
...

o Automation Software sends updates and notifications through:
▪ Healthify Me App
▪ Email
▪ WhatsApp
o Post-Program Engagement:
▪ Even after program completion, A continues receiving:
• Offers and discounts
...

5
...

Automation Software:
o Enables notifications, updates, and reminders for customers during and
after their program
...


Importance of CRM
1
...

This data aids in converting leads into customers, enhancing sales growth
...
Better Customer Understanding
•
•
•

CRM systems collect customer demographic information, purchase history,
communication preferences, and interactions across multiple channels
...

Helps in designing products and services that align with customer expectations
...
Segmentation of Existing Customer Base
•
•
•

CRM data reveals customer-generated revenue for the company
...

This allows companies to prioritize focus and preferences accordingly
...
Personalization
•
•

CRM enables personalized offerings, making customers feel valued and
appreciated
...


5
...

Companies foster loyalty by:
o Addressing customer concerns proactively
o Providing personalized support
o Offering incentives based on preferences
Leads to repetitive sales and the formation of a loyal customer base
...
Seamless Cross-Channel Integration
•
•
•

Customers interact with businesses through websites, social media, email, and
mobile apps
...

This ensures a seamless experience and consistent messaging across channels,
boosting engagement and loyalty
...
Data-Driven Decision Making
•

•

CRM provides real-time data and analytics, helping marketers:
o Track campaign performance
o Measure customer engagement
o Identify trends and patterns
Example Applications:
o Sales data analysis helps determine popular and unpopular products for
better product and inventory management
...


Customer Life Cycle
Definition
•
•
•

The customer life cycle defines the stages a consumer goes through to become a
loyal customer
...

Helps businesses understand how to reach, engage, win, and retain customers for
long-term success
...
Awareness or Reach
•
•

•
•
•

Initial stage where a consumer first learns about the brand
...

Marketers invest heavily in marketing and promotion
...


2
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Contact occurs between the business and customer
...

Information-seeking behaviour is triggered
...


Marketing Strategies:
•
•
•

Reaching out to leads and guiding them towards purchase
...

Regular follow-ups to prevent them from switching to competitors
...
Conversion or Purchase
•
•

The lead becomes a paying customer
...


•

Marketers ensure a pleasant buying experience by:
o Removing purchasing barriers (doubts, second opinions, etc
...

o Ensuring the customer is fully convinced before purchase
...
Retention
•
•
•

•

Focuses on deepening customer relationships to encourage repeat purchases
...

Marketers use:
o Promotional discounts for additional purchases
...

For existing loyal customers, companies shift focus to relationship-building rather
than promotion
...
Advocacy
•

•
•

Customers become brand advocates and promote the business through:
o Word of mouth
o Online reviews
o Personal recommendations
Brand loyalists help generate additional sales and expand the customer base
...
Relationship marketing focuses on building long-term customer loyalty and
engagement rather than short-term sales
...
It emphasizes customer retention, satisfaction, and personalized interactions to
create strong brand connections
...
Customers
•
•
•

Identifying the right target audience instead of catering to a mass market
...

Offering personalized discounts, loyalty points, and exclusive services to high-value
customers
...


2
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Constant market analysis to adapt to changing consumer preferences
...

Example: Apple discontinued the iPod as customers shifted to smartphones for
music
...
Cost, Profitability & Value
•
•
•
•

Focus on long-term customer profitability rather than just product sales
...

Enhance relationships through loyalty programs, incentives, and quality service
...


4
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Streamlining order placement, payment processing, and shipping
...

Example: Domino’s Pizza guarantees 30-minute delivery to enhance customer
satisfaction
...
Capabilities
•
•
•
•

Enhancing company technology, workforce, and customer-centric strategies
...

Predicting customer needs and ensuring seamless interactions
...


6
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Using data analytics to predict and personalize offerings
...

Example: Nike By You allows customers to design custom sneakers
...
Communication
•
•
•
•

Engaging in two-way communication rather than one-way traditional marketing
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Encouraging customer feedback, reviews, and polls to improve services
...


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Analysing profitability per customer segment
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Example: Netflix tracks watch history to recommend personalized content
...
Customer Care
•
•
•
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Providing after-sales support, complaint resolution, and service assistance
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Prioritizing customer satisfaction and retention
...


10
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Monitoring service quality at every interaction point
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Example: McDonald's supplier partnerships maintain quality standards worldwide
...
Collaboration & Integration
•
•
•
•

Co-creating products with customers through feedback, surveys, and prototypes
...

Strengthening inter-company collaborations to provide better services
...


Building a CRM program: Process
1
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(Example: HubSpot CRM, Zoho CRM - basic plan)

•

•

Medium-Scale CRM: Used by mid-sized businesses; includes automation,
marketing, and customer service integration
...
(Example: SAP CRM, Oracle CRM, Salesforce Enterprise Edition)

2
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(Example: Email marketing automation, tracking interactions)
Analytical CRM: Uses data analysis for decision-making (segmentation, predictive
analytics)
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(Example: Shared database for marketing & customer service)
Strategic CRM: Focuses on long-term customer engagement
...
CRM Metrics
Sales Metrics
•
•
•

Lead Conversion Rate = (Converted Leads / Total Leads) × 100
Sales Cycle Length = (Total Days to Close Deals / Total Deals Closed)
Customer Acquisition Cost (CAC) = (Sales & Marketing Cost / New Customers
Acquired)

Marketing Metrics
•
•
•

Customer Lifetime Value (CLV) = Average Purchase Value × Purchase Frequency
× Customer Lifespan
Email Open Rate = (Emails Opened / Emails Sent) × 100
Return on Marketing Investment (ROMI) = (Revenue - Marketing Cost) /
Marketing Cost × 100

Customer Service Metrics
•
•

Customer Satisfaction Score (CSAT) = (Satisfied Customers / Total Responses) ×
100
Net Promoter Score (NPS) = % Promoters - % Detractors

Customer Engagement Metrics
•
•

Churn Rate = (Customers Lost / Total Customers at Start) × 100
Retention Rate = 100 - Churn Rate

•

Social Media Engagement = Likes, shares, comments

4
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Phase 2: System Design & Configuration (4-8 weeks)
•

Set up architecture, customize fields & workflows, integrate with other systems, plan
data migration
...


Phase 4: Training & User Adoption (2-4 weeks)
•

Develop training materials, conduct training sessions, gather feedback, promote
adoption
...


Phase 6: Continuous Improvement (Ongoing)
•

Analyse CRM adoption, optimize workflows, introduce new features, provide
ongoing training
...
These include:
1
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The leadership team must actively participate in CRM initiatives and decisionmaking
...
Their involvement ensures alignment with business objectives and drives
organizational commitment
...


3
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5
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Since leadership actions hold significant influence, their support leads to
smooth implementation
...
Customer data must be safeguarded against misuse, unauthorized access, or
manipulation
...
Since CRM systems handle vast amounts of customer data, robust
cybersecurity measures are essential
...
Compliance with data protection laws (e
...
, GDPR, CCPA) ensures ethical
data usage and builds customer trust
...
Employees must be trained in CRM strategies and their importance to the
business
...
Structured training programs should be conducted to ensure proper execution
of CRM functions
...
Recruiting the right talent ensures seamless CRM implementation and
customer engagement
...
A well-structured transition plan must be in place when adopting new CRM
technologies or processes
...
Employees should be given sufficient time and training to adapt to new
systems
...
Resistance to change can be minimized through transparent communication
and incentives for adoption
...
The selection of CRM technology should align with business needs and
scalability requirements
...
Vendors must be assessed based on reliability, support services, and
integration capabilities
...
Example: Amazon utilizes AI-powered recommendations and interactive
product visualizations for enhanced customer experience
...
Employee performance should be evaluated based on customer satisfaction
indicators
...
Example: Measuring service response time, positive customer feedback, and
resolution efficiency in customer service departments
...
Organizational policies should be designed to prioritize customer needs
...
Examples: Amazon’s one-day delivery and return policy, Flipkart Assured,
and BookMyShow’s best seat suggestion feature
...
Legacy systems should be integrated with new CRM solutions to ensure
smooth data transition
...
Hybrid models may be used to blend old and new systems efficiently without
disrupting operations
...
Any business process changes should enhance customer experience and
convenience
...
Examples: Self-check-in kiosks at McDonald's, app-based ordering in
restaurants
...
It involves:
1
...
Businesses must understand customer preferences and tailor their offerings
accordingly
...
Proactive research ensures the right product-market fit (e
...
, automobile
companies designing fuel-efficient cars based on consumer demand)
...
Anticipating Future Needs
a
...

b
...
g
...

3
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Employee behaviour and customer interactions should be empathetic and
customer friendly
...
Example: Personalized greetings, loyalty programs, and special discounts for
repeat customers
...
Pro-Customer Policies
a
...

b
...

5
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Customer support should be easily accessible, efficient, and responsive
...
Examples: Dedicated 24/7 customer support helplines, chatbot assistance for
quick issue resolution
...
Customized Offerings
a
...

b
...

7
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Regular updates, notifications, and proactive engagement enhance customer
relationships
...
Examples: EMI alerts from banks, personalized shopping assistance in retail
stores
...
Feedback & Grievance Redressal
a
...


b
...


Resources for CRM
1
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CRM platforms require cloud-based or on-premise software solutions
...
Scalable server infrastructure and integration capabilities are essential for
smooth operations
...
Human Resources
a
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b
...

3
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Budget allocation for CRM implementation, software licensing, and system
maintenance
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Investment in AI-powered automation for efficiency and scalability
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Infrastructure & Support Services
a
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b
...

Cultural Shift in CRM Implementation
A cultural shift is essential for CRM success, requiring organizations to transition from a
product-focused to a customer-centric approach
...
Customer-First Mindset – Employees must prioritize customer relationships over
short-term sales
...

2
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3
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4
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5
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Example: Starbucks’ employee-customer interaction
model
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Customer-Centric Metrics – Performance should be measured through customer
satisfaction, not just revenue
...

7
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Example: Ritz-Carlton’s quick problem-solving
approach
...
It leverages
emails, websites, chat rooms, forums, and other digital channels to manage customer
interactions efficiently
...

1990s: CRM became formalized with technological advancements
...

Service Industry Growth: Shift from producer-focused to customer-centric
strategies
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Contact Management:
a
...

b
...

2
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Uses personalized data-driven strategies
...
Automates email and social media marketing
...
Sales Tracking:
a
...

b
...

4
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Centralized handling of customer complaints and queries
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Ensures faster resolution and higher customer satisfaction
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Analytics & Reporting:
a
...

b
...

6
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Uses data analytics for customer-focused strategies
...
System Integration:
a
...


Benefits of E-CRM:
1
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Improves engagement across multiple digital channels
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Customer Loyalty & Retention:
a
...

3
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Tailors products and services to customer preferences
...
Improved Service Management:
a
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5
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Helps identify profitable customer groups for targeted strategies
...
Mass Promotional Campaigns:
a
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Disadvantages of E-CRM:
1
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g
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Future Trends of E-CRM
Definition
• E-CRM leverages internet technologies to manage customer relationships through real-time
data analysis, personalization, and seamless digital integration
...

Key Focus Areas in Future E-CRM
• Hyper-Personalization
• Omnichannel Experience
• AI & Automation
• Real-Time Service
• Data Security & Privacy
• Sustainability and Ethical Branding

1
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• Uses AI, real-time data, and behavioral analytics to deliver hyper-personalized
experiences
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Nike Fit App: Scans feet using AI to suggest the perfect shoe size
...
Omnichannel Experience – “Connected Everywhere”
• Integrates website, app, store, and social media into a single, seamless journey
...

Example – Nike+:
•
•
•

In-store digital scans with AI suggestions
...
”
Exclusive member offers synced across all platforms
...
Speed & Instant Support – “Speed is Key”
• Customers expect 24/7 service across multiple platforms
...


Benefits:
•
•
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Instant query resolution
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Enhanced customer satisfaction
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Data Privacy & Security – “Earn My Trust”
• Governed by India’s DPDP Act, 2023 for responsible data handling
...
AI & Machine Learning Integration
• AI enhances customer engagement by:
•
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•
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Sentiment analysis using NLP
Behaviour prediction for proactive marketing
Automated support for faster responses
Targeted campaigns for better ROI

• AI + Blockchain ensures:
•
•
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Real-time fraud detection
Immutable and verified data
Automated regulatory compliance

6
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• Used for:
•
•
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Voice search
Hands-free support
Appointment booking (e
...
, Google Duplex)

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8
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● It is a critical metric in Customer Relationship Management (CRM) that helps
businesses understand the long-term value of customers, aiding in strategic decision-making
...


● Importance of CLV in CRM
● Helps identify the most profitable customer segments
...

● Provides a basis for customer segmentation and tiered loyalty programs
...

● Increases focus on customer satisfaction and engagement for improved profitability
...

Key Practices:
● Data-Driven Segmentation:
•

Starbucks analyzes purchase frequency, average ticket size, and customer behavior to
segment customers based on value
...


● Personalized Offers:
•

Using app and purchase data, Starbucks sends tailored promotions to increase visit
frequency and product spend
...
g
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Outcome: Starbucks uses CLV to increase customer stickiness, improve ROI on
promotions, and foster brand loyalty through consistent, meaningful engagement
...
Concept of Loyalty Programs
• A Customer Loyalty Program is a marketing strategy designed to encourage customers to
continue buying from or engaging with a brand by offering them rewards for their loyalty and
repeated interactions
...

• These programs are essential components of Customer Relationship Management (CRM)
and contribute to long-term customer retention, advocacy, and profitability
...

2
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4
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g
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g
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Repeat Purchases: Increases profitability through sustained brand interaction
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Impulse Buying: Time-limited rewards trigger unplanned purchases
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Increased CLV: Loyalty increases the lifetime revenue from a single customer
...


2
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Excellent Customer Service: Quick and efficient resolution of customer concerns
shows respect for their time and business
...


•
•
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Customization: Products/services tailored to individual preferences increase
perceived value
...

Effective Communication: Regular updates, newsletters, and announcements
maintain brand presence in the customer’s mind
...
Personalization in Loyalty Programs
Why Personalization Works:
•
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In contrast to mass marketing, personalized communication creates emotional
engagement and increases the likelihood of conversion
...


Benefits:
•
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•
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Higher Utilization of Rewards: Personalized offers are more likely to be noticed and
used
...

Upsell Motivation: Discounted prices encourage purchase of premium products
...


Example: Epsilon’s research found 80% of consumers are more likely to buy when offers
are personalized
...
Gamification in Loyalty Programs
Definition:
Gamification uses game elements like challenges, badges, levels, and leaderboards in nongaming contexts to improve customer participation
...
Game Dynamics – Motivation drivers like fun, reward anticipation, and recognition
...
Game Mechanics – Action-based components like challenges and competitions
...
Game Components – Visible outputs like badges, avatars, tiers, etc
...

Repetitive Purchases: Points, badges, and tier upgrades encourage continued buying
...

Social Recognition: Customer testimonials and public achievements act as
motivators
...


5
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Offer personalized recommendations based on browsing and purchase behavior
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Engage customers via interactive content like quizzes or games
...

Handle queries without human agents, reducing cost and increasing efficiency
...

Sustainability in Loyalty Programs:
•
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•

Customers are increasingly attracted to eco-conscious brands
...
g
...
g
...
g
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Benefits:
•
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Enhances brand reputation
Fulfills CSR objectives
Appeals to eco-conscious customer segments

6
...

Loyalty Programs → Advocacy:
•
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Rewards and personalized treatment lead to highly satisfied customers
...
g
...
Loyalty Partnerships
Definition:
A Loyalty Partnership involves two or more companies collaborating so that loyalty
benefits from one can be redeemed with another
...

Star Alliance – Redeem air miles across multiple airlines
...


Advantages:
•
•
•
•
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Customer Acquisition from partner ecosystems
...

Cross-Selling Opportunities – Products from one brand promoted by another
...

Stronger Competitive Edge – Shared promotional efforts widen market reach
...
Hospitality Industry
CRM Applications in Hospitality
Technical Aspects:
•
•
•
•
•
•

Room Reservation Systems: User-friendly booking with live room availability and
options like “Book Now, Pay Later
...

Automated Reminders: Pre-arrival notifications and check-in alerts
...

Service Request Management: Telecalling or app-based requests for housekeeping,
food, etc
...


Operational Aspects:
•
•
•
•

Trained staff for guest interaction
Value-added services: pick-up/drop from airports, customizable meals (baby food,
Jain food)
Clean, hygienic rooms and facilities
Accessibility services: wheelchairs, special assistance

Other CRM Tools:
•
•

Loyalty programs and memberships
Personalized offers and communication

Benefits:
•
•
•
•

Higher customer convenience and satisfaction
Improved retention and brand loyalty
Enhanced positive word-of-mouth and repetitive bookings
360-degree customer profile access for better service delivery

Challenges:
•
•
•

High cost of CRM setup and staff training
Managing demanding customer expectations
Maintaining quality standards in low-budget hotels

2
...
Insurance Industry
CRM Applications in Insurance
Digital Insurance Services:

•
•
•
•
•

Online policy management, premium payments, and claim tracking
Personalized policy offers using customer demographics
Cashless insurance services across hospitals and garages
Claim process automation and faster settlements
CRM reminders for renewals and coverage updates

Engagement Tools:
•
•

Reward programs like no-claim bonuses
CRM analytics for high-risk vs low-risk segmentation

Benefits:
•
•
•
•

Improved customer satisfaction due to fast and transparent services
Better policyholder engagement and retention
Increased upsell/cross-sell of add-on products
Reduction in churn and increased CLV

Challenges:
•
•
•

Low interaction post-policy sale if CRM tools aren't used effectively
Regulatory compliance and policy complexity
Sensitivity of denied claims and the need for empathetic communication

Additional Points:
•
•

CRM dashboards track renewal rates, claim ratios, and upselling opportunities
AI-driven risk models personalize insurance pricing and coverage

4
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g
...
g
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● It is achieved by offering more value—either through lower prices or superior benefits—
compared to competitors
...


How CRM Provides Competitive Advantage
1
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● It helps companies design services, processes, and communication to enhance customer
satisfaction and loyalty
...


2
...

● Marketers gain valuable insights into customer behavior and preferences
...

● Example: Zudio identified the growing demand for stylish yet affordable apparel and
aligned its strategy accordingly
...
Enhanced Customer Convenience
● CRM allows businesses to offer personalized and customizable experiences
...

● Examples:
○ Wakefit allows customers to design custom furniture
...


4
...

● This leads to repeat purchases, higher loyalty, and a longer Customer Lifetime Value
(CLV)
...


5
...

● Businesses can forecast trends, personalize offers, and optimize campaigns based on actual
data
...


6
...

● Businesses can engage thousands of customers while maintaining personalization
...


Globalization & CRM: Implications
● Introduction
● Globalization is the process through which businesses, economies, societies, and cultures
become interconnected and interdependent across international borders
...

● Globalization enables companies to expand their reach, tap into new markets, lower
operational costs, and build international supply chains
...


1
...

● Job Displacement:
○ Outsourcing and offshoring to reduce costs may result in unemployment in high-wage
countries
...

● Environmental Impact:
○ Increased global production and consumption lead to pollution, deforestation, and climate
issues
...

● Cultural Misalignment:
○ Without culturally sensitive CRM strategies, businesses may fail to connect with local
audiences
...
CRM Implications in a Globalized Business Environment
● Businesses must localize CRM strategies to meet cultural, legal, and linguistic
requirements in different regions
...
g
...


3
...

● Uses CRM to create customer profiles and deliver personalized communication
...

● Adjusts marketing and design based on local cultural insights
...

● Localizes website content, payment methods, customer service, and logistics for each
market
...

● Nike
● Operates in over 190 countries using CRM to understand regional buying patterns
...

● Nike+ membership program drives loyalty and community-building
...

● Zara
● Localizes product lines based on real-time CRM feedback and fast fashion trends
...

● Captures feedback across online, in-store, and mobile channels for rapid design updates
...
Additional CRM Insights in a Global Context
● Data Localization Compliance:
○ Businesses must comply with regional data privacy laws (e
...
, GDPR in EU, DPDP in
India)
...

● Real-Time Feedback Loops:
○ Global brands collect instant feedback across geographies to adjust strategies in real time
...


Employee and CRM Processes for Profitability: HP India
Case Study
● Overview
● This unit explores how Hewlett-Packard (HP) India maintained a balance between
employee satisfaction and customer satisfaction, and how this balance contributed to
effective CRM implementation and profitability
...


1
...

● The company introduced a series of initiatives to ensure that employees felt valued,
motivated, and aligned with company goals
...

Offering flexible work hours and ensuring a good work-life balance
...

Cultivating a fun and engaging workplace culture to improve morale
...


2
...

Actionable CRM strategies included:
•
•

•

Comprehensive training for customer service executives, field engineers, and
resellers
...


•

Regular customer feedback was collected through surveys and forms, and the
insights were analyzed to refine service strategies
...
Employee-Customer Satisfaction Linkage
● HP’s strategy showcased a clear cause-and-effect relationship:
•
•
•

Satisfied and engaged employees led to better customer experiences
...

Feedback from both customers and employees helped refine CRM processes
...


● Additional Insights
● HP’s approach demonstrates that CRM is not just a technological tool but a cultural
transformation, where employees are empowered to deliver better experiences

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