Customer Relationship Management L. Gayathry

Customer Relationship Management

L. Gaythry, M.Com., M.Phil., MBA., DIM., PGDIM., HOD - Department of B.Com., (Bank Management) Dr. MGR JANAKI COLLEGE OF ARTS & SCIENCE FOR WOMEN Chennai - 600 028.

For online purchase

www.charulathapublications.com New No.24, Thambiah Road, West Mambalam, Chennai - 33.

Mobile : 98404 28577

November 2019

© Charulatha Publications

ISBN No. : 978-81-943152-3-0

CHARULATHA

PUBLICATIONS

New No.24, Thambiah Road, West Mambalam, Chennai - 600 033. Phone : 24745589, 24746546 Email : [email protected] [email protected] www.charulathapublications.com

PREFACE This book is all about the current scenario of customer relationship management. Today, businesses are facing a lot of critical situations from various sides. One of the important factors of businesses is a customer. “Customer is God”. “Customer is the king”. Customer is always right. These phrases or sayings are true as we know that business is by customers for the customers and to the customers. People got the realization of importance of customers in their life. Customer relationship strategy is a long lasting system which helps the industry to sustain in this volatile world. CRM mainly introduced in this curriculum as it occupies an important place in the industry. This book brings you the importance of retaining and addressing customers. This book is contemporary and hence adaptive to the changes of theories of this world.

AUTHOR

ACKNOWLEDGMENT I would like to express my special thanks to my institution, Dr.MGR Janaki College of arts and science for women. And our beloved principal, vice principal, dean academic and dean of second shift. I profusely thank our correspondent and our MD for the constant support for my growth. I sincerely thank my parents, my husband and kids for the zeal they inducted in me. I thank almighty for such good opportunities.

1

COMMUNICATION Introduction Communication is the key to the success of customer relationship management, and it lays the foundation for customer satisfaction and business growth. Today, we have a wide range of CRM communication channels that organizations effectively utilize for communicating with their customers to offer their products and services. The communication channels for CRM has evolved over a time, along with the evolution of communication technology. Organizations. It is high time we refrain from the old methods and bring new methods to the market for communication with customers. The one word which plays as the trump card for customer relations is the “code of satisfaction”.

1.2

Communication

Communication Options Different customer communication channels/modes are summarized in the table below. Table 1– Different CRM Communication Channels/Modes No

Customer Communication Channel/Mode

Description of the Preference – Communication Sample Situations Channel/Mode When This Communication Channel/Mode Is Preferred (for Marketing, Sales, Service)

1

Meeting individual customers in person

Meeting individual customers and having face to face meetings with them

For meeting customers and explaining offers, demonstrating products, offering service support

2

Events/road shows

Meeting specific groups of customers through events/road shows and having face-to-face meetings with them

For meeting customer groups (e.g. specific industry verticals) and explaining offers, demonstrating products to them

Customer Relationship Management

1.3

3

Postal correspondence

Sending correspondence (paper copy) through post (to individual/group of customers)

For sending printed copies of letters/offers brochures/contracts etc., on products/services

4

Phone calls

Speaking to customers over phone to explain offers, offer service support

For communicating on products/services that need an explanation/dialogu e (e.g., explaining housing loans, resolving customer problems)

5

Fax

Sending correspondence (paper copy) through Facsimile (to individual/group of customers)

For sending printed copies of letters/offers brochures/contracts etc., on products/services

6

Email

Sending correspondence through email (to individual/group of customers)

For sending soft copies of letters/offers brochures/contracts etc., on product/services

1.4

Communication

7

Short Message Service (SMS)

Sending SMS updates to mobile phones (to individual/group of customers)

For sending brief text messages on current offers/events/status updates

8

Multimedia Message Service (MMS)

Sending MMS updates to mobile phones (to individual or group of customers)

For sending picturebased messages on current offers/events

9

Video Discussion with a conferencing (VC) group of customers (located in remote location or in distributed locations) through VC

For discussing with a group of stakeholders, demonstrating products, making presentations

10

Chat

Having an online chat with customers on products/services

For interacting with the customers online and answering their queries related to products/ services

11

Blogs

Posting information on products/services on a blog and communicating further with customers

For posting information on products/services on a blog; customers start sharing their opinions/experience , post their queries,

Customer Relationship Management

1.5

which are answered by the organization/other customers 12

Social networks

Customer communication/prod uct launch through social networks (like Facebook, Twitter)

For offering products/services to a larger audience and to enable customers to share their views/experiences with their friends and followers in the social network

Multichannel Communication Organizations select and use a combination of customer communication channels/modes based on some of the factors listed below: •

Nature of the products/services being offered (e.g. consumer goods, IT products, banking services)

•

Target customer segments addressed (e.g., individuals, corporate)

•

Geographic locations covered (e.g. urban areas, rural areas)

•

Nature of the interaction and criticalness of the situation (e.g., negotiation meeting, field sales/service)

1.6

Communication •

Communication policy /budget factors (e.g., low travel budget, emphasis on face-to-face meetings)

•

Multichannel communication is preferred by organizations, to address their customer needs and requirements.

Social Networks and Customer Communication Technology advancements have progressively taken customer communication from in-person meetings/events, to phone calls, emails, SMS/MMS, video conferencing, blogs, and recently to social networks. Today, social networks are really changing the face of customer communication, as it reaches a larger audience through wide networks of friends and followers. A good brand/product/service, when offered through social networks, receives positive feedback; on the other hand, if it is not good, it receives severe criticism. Both positive and negative feedback spread quickly through social networks to a larger prospective customer base that can influence purchase decisions either in favor or against an organization. Social networks can effectively be used for marketing (wider reach), sales (reduced cycle time) and service support (quick resolution), due to the collaborative interaction of organizations with their customers and partners. Face to Face Marketing, sales and service people should make the best possible use of all communication channels/modes.

Customer Relationship Management

1.7

Yet in spite of the availability of all these communication channels, meeting customers in person -- showing them the product, explaining the features/services, answering their queries, resolving their problems and finally seeing the smile on their face -- is still the most-preferred communication mode. Oral and written communication with customers: Being able to communicate effectively is perhaps the most important of all life skills. It is what enables us to pass information to other people, and to understand what is said to us. You only have to watch a baby listening intently to its mother and trying to repeat the sounds that she makes to understand how fundamental the urge to communicate is. Communication, at its simplest, is the act of transferring information from one place to another. It may be vocally (using voice), written (using printed or digital media such as books, magazines, websites or emails), visually (using logos, maps, charts or graphs) or non-verbally (using body language, gestures and the tone and pitch of voice). In practice, it is often a combination of several of these.

1.8

Communication

Interpersonal communication is the process by which people exchange information, feelings, and meaning through verbal and non-verbal messages: it is face-to-face communication. It is one of the essential qualifications of a customer relationship manager. Interpersonal communication is not just about what is actually said - the language used - but how it is said and the nonverbal messages sent through tone of voice, facial expressions, gestures and body language. When two or more people are in the same place and are aware of each other's presence, then communication is taking place, no matter how subtle or unintentional. Without speech, an observer may be using cues of posture, facial expression, and dress to form an impression of the other's role, emotional state, personality and/or intentions. Although no communication may be intended, people receive messages through such forms of non-verbal behavior. Elements of Interpersonal Communication Much research has been done to try to break down interpersonal communication into a number of elements in order that it can be more easily understood. Commonly these elements include: The Communicators For any communication to occur there must be at least two people involved. It is easy to think about communication involving a sender and a receiver of a message. However, the problem with this way of seeing a relationship is that it presents communication as a one-way process where one person sends the message and the other

Customer Relationship Management

1.9

receives it. While one person is talking and another is listening, for example. In fact communications are almost always complex, two-way processes, with people sending and receiving messages to and from each other simultaneously. In other words, communication is an interactive process. While one person is talking the other is listening - but while listening they are also sending feedback in the form of smiles, head nods etc. The Message Message not only means the speech used or information conveyed, but also the non-verbal messages exchanged such as facial expressions, tone of voice, gestures and body language. Non-verbal behaviour can convey additional information about the spoken message. In particular, it can reveal more about emotional attitudes which may underlie the content of speech. See our page: Effective Speaking for more on how you can use your voice to full effect. Noise Noise has a special meaning in communication theory. It refers to anything that distorts the message, so that what is received is different from what is intended by the speaker. Whilst physical 'noise' (for example, background sounds or a low-flying jet plane) can interfere with communication, other factors are considered to be ‘noise’. The use of complicated jargon, inappropriate body language, inattention, disinterest, and cultural differences can be considered 'noise' in the context of interpersonal communication. In other words, any distortions or inconsistencies that occur during an attempt to communicate can be seen as noise.

1.10

Communication

Our page: Barriers to Effective Communication explains this in more detail. Feedback Feedback consists of messages the receiver returns, which allows the sender to know how accurately the message has been received, as well as the receiver's reaction. The receiver may also respond to the unintentional message as well as the intentional message. Types of feedback range from direct verbal statements, for example "Say that again, I don't understand", to subtle facial expressions or changes in posture that might indicate to the sender that the receiver feels uncomfortable with the message. Feedback allows the sender to regulate, adapt or repeat the message in order to improve communication. Our pages: Giving and Receiving Feedback, Clarification and Reflecting describe common ways to offer feedback in communication, while our page: Active Listening describes the process of listening attentively. Context All communication is influenced by the context in which it takes place. However, apart from looking at the situational context of where the interaction takes place, for example in a room, office, or perhaps outdoors, the social context also needs to be considered, for example the roles, responsibilities and relative status of the participants. The emotional climate and participants' expectations of the interaction will also affect the communication. Channel The channel refers to the physical means by which the message is transferred from one person to another. In a face-to-face

Customer Relationship Management

1.11

context the channels which are used are speech and vision, however during a telephone conversation the channel is limited to speech alone. Uses of Interpersonal Communication Most of us engage in some form of interpersonal communication on a regular basis, often many times a day, how well we communicate with others is a measure of our interpersonal skills. Interpersonal communication is a key life skill and can be used to •

Give and collect information.

•

Influence the attitudes and behaviour of others.

•

attitudes and behaviour of others

•

Form contacts and maintain relationships.

•

Make sense of the world and our experiences in it.

•

Express personal needs and understand the needs of others.

•

Give and receive emotional support.

•

Make decisions and solve problems.

•

Anticipate and predict behavior.

•

Regulate power.

THE FOLLOWING BOOKS FOR ARTS & SCIENCE B.Sc., & BCA. Computer Graphics Computer Organisation & Architecture Computer Application in Business Computer Networks Digital Electronics & Microprocesor Data Mining and Data Warehousing Database Management System Digital Computer Fundamentals & MP Data Communication Network Design Analysis of Algorithm Datastructures and Algorithm Fundamentals of Digital Computer HTML and Java Script Information Technology Internet & its Application Linux and Shell Programming Multimedia Microprocessor & its Application Object Oriented Analysis & Design Operating Systems Programming in C Programming in C++ Programming in C++ & Datastructures Programming in Java Programming in C (Bsc-Maths Allied) Programming in C & DS Python Programming Problem Solving Technique RDBMS & ORACLE RDBMS Resource Management Technique Software Testing Software Engineering System Administration & Maintainance Visual Programming Web Technology Soft Skill Services Marketing SBAMM

B.Com., & BBA. Auditing Principles & Practices Advertisement & Sales Promotion Business Economics Business Communication Business Law Business Environment Business Regulatory Framework Banking & Insurance Principle Banking Theory Law & Practice Business Mathematics Business Statistics Business Organisation Corporate Accounting (I & II) Cost Accounting (I & II) Company Law and Secretarial Practice Consumer Behaviour E- Commerce Entrepreurial Development Environmental Studies Financial Accounting (I & II) Financial Management Financial Management (MBA) Financial Services Human Resource Management International Trade/Business Indirect Taxation Insurance Indian Economy Lifeskill Education Management Accounting Marketing Management Management Concepts Operations Research Organisational Behaviour Principles of Management Production Management Personality Development Research Methodology Retail Management ISBN-13: 978-81-943152-3-0

9 788194 315230