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Customer Service & CRM Basics

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Presentation on theme: "Customer Service & CRM Basics"— Presentation transcript:

1 Customer Service & CRM Basics

2 Objectives What is Customer Service?
Why is Customer Service important? Why are Customers important? What is your role? How to provide good service to the customers?

3 What is Customer Service?
Meeting / exceeding the expectations of customers. It is the ability of the organization to constant and consistently give the customer what they want and expect. Expectations means needs and wants of the customers.

4 Types of Customers Internal External
What is the main purpose of Business? To create customers There is no business without customers

5 Why are Customers important?
Customers are the reason that we exist in business. A customer is not an interruption – he is the Purpose. A customer is not dependent on us – We are.

6 Why is Customer Service important?
Stiff competition from Product competitors. Basic philosophy is change from Sales to Marketing.

7 Bad Service One can get away with bad service if: Monopoly
Competing on price Everyone provides a similar levels of service If you want to build relationship Understand the Customer. Understanding Customer’s need. Understand Customer’s Psychology.

8 Why are Contact Centers important?
Contact Centers are setup so that they can give best service possible to the customers. To update customers about product features, services, etc without the customers physically going to the particular company. Saves time for both the parties. Prompt Service

9 A Moment of Truth “ A moment of truth is an episode in which a customer comes into contact with any aspect of the company, however remote and there by has an opportunity to form an impression”.

10 Factors influencing Performance of Contact Center
Customer Service Focus Vision of the company Leadership to carry out the vision across the company Teamwork to achieve vision Communication Interpersonal Skills

11 Skills & Knowledge Technical Skills Product Knowledge Market Knowledge
Support Training Coaching Clarity of Role

12 Impact of Good Service Repurchasing Referral Business
Increase in Profits Impact of Bad Service Complaints Negative Public Relations Loss of Business Increase in replacements of lost customers

13 Service Oriented Companies
Charge 9% more Grow at twice the rate Profitable Good Customer Service Quality Reliability Environment

14 Intangible points of Service
Sense of Caring Courtesy Willingness to help Ability to solve problem Enhanced service development Employee Satisfaction Increased Profitability Survival

15 Customer Relationship Management
Importance of Satisfied Customers Cost of getting new customer on the board – 5 times more than keeping existing customer Unhappy customer tells – Minimum 10 people How many customers can good service retain – 80% Satisfied Customer tells – only 3 – 4 people How many unhappy customers complain – Most of the customers don’t complain, just walk out of your business.

16 CRM Framework The true Customer Centric strategy CRM Definition
A marketing initiative for acquisition, retention and growing of profitable customers selectively.

17 Understanding CRM It encompasses all processes where the customers are involved be it internal or external customers. An initiative which acts as the front end for integration of all business functions of a customer centric organization.

18 Defining Customers Customer is any person who buys a product or avails a service Customers can be of 2 types Internal and External Customers are human beings – so it is the experience of the customer which is important in any customer related process / initiative

19 Relationship Unrevealed
Interaction is the first step towards relationship building Repeated interactions lead a healthy relationships and knowledge about customers Interactions are repeated if there is no breach of trust and commitment.

20 Management of Customer Relationship
A planned, focused value based approach to deliver quality of service Increase use of customer channels Increases profitability by delivering what customers need, want or desire rather than deliver feature and technology Trust one to one customization effort leads to potential business benefits like cross-sell, up-sell and customer loyalty.

21 Advantages Reduces advertising costs
Makes it easier to target specific customers by focusing on their needs Easier to track effectiveness of a campaign Organization compete on services not prices Speeds the time it takes to develop and market a product Improves use of customer channels

22 Why CRM? Change in market scenario – companies compete on services
Competition If you don’t deliver – your competitor does 80% of business comes from 20% of customers Acquiring a new customer costs 5 times more than retaining existing customer Referrals are the cost effective way for customer acquisition

23 CRM Cycle Define business vision
Set up access points for customers and prospects Use technology to capture customer data during interactions Use stored data for gaining knowledge and insight about customers Use the same for development / improving products and services Automate work processes for quick service in supply chain automation and sales force automation Acquire new customers

24 Before CRM A Vendor study says:
68% of customers walk away without concluding a sale 80% of a company’s income is from repeat customers It costs 5 times as much as to get a new customer as to keep an existing one

25 After CRM A Vendor study says: A 51% of increase in sales
20% of increase in customer satisfaction 2% increase in profits and organization 21% reduction in cost of sales and service


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