Customer Relationship Management MBA Project Reports
The biggest management challenge of liberalization and globalization for a business is to serve and maintain good customer relationship with the king – the customer. In the past producers took their customers for granted, because at that time the customers were not demanding nor had alternative source of supply or suppliers. But today there is a radical transformation. The changing business environment is characterized by economic liberalization, increasing competition, high consumer choice, demanding customer, more emphasis on quality and value of purchase etc.
All these changes have made today’s producer shift from traditional marketing to modern marketing. Modern marketing calls for more than developing a product, pricing it, promoting it and making it accessible to target customer. It demands building trust, a binding force and value added relationship with the customers.
The process of developing a cooperative and collaborative relationship between the buyer and seller is called customer relationship management shortly called CRM. According to Ashoka dutt head of Citi Bank “the idea of CRM is to know the individual customer intimately, so that the company has a customized product ready for him even before he asks for it.”
Aims of Customer Relationship Management
The CRM is a new technique in marketing where the marketer tries to develop long term relationship with the customers to develop them as life time customers. CRM aims to make the customer climb up the ladder of loyalty.
The company first tries to determine who are likely prospects i.e. the people who have a strong potential interest in the product and ability to pay for it. The company hopes to convert many of its qualified prospect into first time customers and then to convert those first time customers into repeat customers. Then the company tries to convert these repeat customers into clients – they are those people who buy only from the company in the relevant product categories. The next challenge for the company is to convert these client into advocates. Advocates are those clients who praise the company and encourage others to buy from it.
The ultimate challenge is to convert these advocates into partners where the customers and the clients work actively together to discover ways of getting mutual benefit.
Thus in CRM the key performance figure is not just current market share but share of life time value by converting customers into partners.
In CRM the company tries to identify that small percentage (20%) of key account holders who’s contribution to the company revenues is high (80%). So from this point of view, CRM (Customer Relationship Management) is also known as KEY ACCOUNT MANAGEMENT.
Why – customer relationship management
Ø A satisfied customer in 10 years will bring 100 more customers to the company.
Ø It costs 7 time more to attract a new customer than to serve an old one.
Ø 20% of the company’s loyal customers account for 80% of its revenues. (Pareto’s principle).
Ø The chances of selling to an existing customer are 1 in 2, the chances of selling to a new customer are 1 in 16.
Eight ways to keep customers for life
1. Every part of the company’s marketing effort should be geared towards building lifetime relationships.
2. People want to do business with friendly people. To have effective relations a friendly attitude must permeate in the organization.
3. Information technology developments should be positively used to serve the customers.
4. The company should always be flexible to bend its rules and procedures in the client’s favor.
5. The company should communicate with its customers even when it is not trying to sell something.
6. The company can communicate and develop stronger customer bonding by providing financial and social benefits.
7. The company should try to know all its customers including their lifestyles, hobbies, likes and dislikes etc.
8. The company should make it a point to deliver more than what is promised.
Title of the Project : Customer Relationship Management, Project Report on CRM, Project Report Customer Relationship Management, Tools of Customer Relationship Management, MBA HR Research on Customer Relationship Management, MBA Project Report on Customer Relationship Management
This is the short story of Customer Relationship Management. If anybody need the full project contact us at mail firstname.lastname@example.org or phone no. 08398957646