CUSTOMER RELATIONSHIP MANAGEMENT (CRM) | AHSEC Class 12 Retail Trade Part-A Chapter: 3 Notes

AHSEC CLASS 12 RETAIL TRADE NOTES

PART - A

CHAPTER: 3

CUSTOMER RELATIONSHIP MANAGEMENT

Q. What is. Customer Relationship Management (CRM)? 

Ans: Customer Relationship Management (CRM) is a model used for managing interactions a retailer has with its existing and prospective customers. CRM software is used to organise, automate, and synchronise the different activities related to sales, marketing, customer support services, and technical support. Retailers often use CRM information gathered from different departments and analyse it to know the interests and buying behaviour of the 

customers.

Fig. The CRM Model

Q.What is CRM ? How can CRM be used to improve customer relations with stores? AHSEC 2022

Ans:CRM (customer relationship management) is a technology and strategy used by businesses to manage and analyze customer interactions and data throughout the customer lifecycle, with the goal of improving customer relationships and business outcomes. Here are a few ways in which CRM can be used to improve customer relations with a store:

Personalized customer experiences: By using CRM to track customer interactions and preferences, a store can provide personalized experiences for each customer, such as recommending products based on their purchase history or sending personalized email or SMS promotions.

Improved customer service: CRM can help stores track and manage customer inquiries and complaints, allowing them to respond to customer needs in a timely and effective manner.

Enhanced customer engagement: CRM can be used to send targeted marketing campaigns and promotions to customers, encouraging them to visit the store and engage with the brand.

Increased customer loyalty: By providing personalized and high-quality customer experiences, stores can build customer loyalty and encourage repeat business.

Better decision-making: By analyzing customer data collected through CRM, stores can make more informed decisions about their business, such as identifying trends in customer behavior or identifying opportunities for improvement.

Q. What are the benefits of CRM ? 

Ans: The following are the benefits of CRM: 

• Reliable reports 

• Dashboards that visualize data 

• Automation to enhance messaging 

• Proactive services 

• Automation improves efficiency 

• Simplifies collaboration

Q. What are the process of CRM?

Ans: CRM stands for customer relationship management. It is a process that companies use to manage and analyze customer interactions and data throughout the customer lifecycle, with the goal of improving customer relationships and driving business growth.

The process of CRM typically involves the following steps:

Collecting customer data: This involves gathering information about customers from various sources, such as sales, marketing, and customer service interactions.

Storing customer data: The collected customer data is then stored in a central repository, such as a CRM system, where it can be accessed and managed by relevant teams.

Analyzing customer data: The stored customer data is analyzed to identify patterns and trends, which can be used to gain insights about customer behavior and preferences.

Using customer insights: The insights obtained from analyzing customer data are used to improve customer relationships and drive business growth. This can be done through personalized marketing campaigns, targeted sales efforts, and improved customer service.

Measuring and optimizing: The effectiveness of the CRM process is measured and evaluated, and any necessary adjustments are made to optimize the process and improve results.

Q. What is E-CRM ?

Ans: E-CRM, or electronic customer relationship management, is the use of electronic communication channels, such as the internet and email, to manage and analyze customer interactions and data throughout the customer lifecycle. E-CRM includes the use of websites, social media, mobile apps, and other digital channels to communicate with and engage customers.

The goal of E-CRM is similar to traditional CRM, which is to improve customer relationships and drive business growth. However, E-CRM allows companies to reach and engage with customers in real-time, on a global scale, and at a lower cost compared to traditional methods.

E-CRM can involve a variety of activities, such as:

1. Managing customer inquiries and complaints through email, chat, or social media

2. Sending personalized marketing messages and offers through email or SMS

3. Tracking customer behavior and preferences through website analytics

4. Offering self-service options, such as FAQs and online customer portals, to reduce the burden on customer service teams.

E-CRM is an important part of a company's overall customer relationship management strategy and can help to improve customer satisfaction and loyalty.

Q.Differentiate Between CRM and E-CRM ?

Ans: Differentiate Between CRM and E-CRM :

BASIS	CRM	E-CRM
Customer  Contact	Customer contact usually  initiated through traditional  means of retail store, telephone  or fax	In addition to telephone, contact is  also initiated through the Internet, e- mail, mobile etc.
System  Interface	Works with the back-end  applications through ERP  system.	Designed for front-end applications,which in turn works with the back-end  applications through ERP systems,data warehouse etc.
System  Overhead (Client  computers)	Web-enabled application  require a PC client to download various applications. These  applications would have to be rewritten for different platforms.	No such requirement, the browser is  the customer’s portal to eCRM.
Customisation and  Personalization of Information	Different audiences require different views and types of information. Personalized views for different audiences is not possible. Individual  customisation requires  programming changes.	Highly individualized “dynamic” and  personalized views based on purchases and preferences are possible. Each audience individually customizes the views.
System Focus	System is designed around products and job functions (for  internal use).	System is designed around the customer’s needs (for external use).
System  Maintenance  and  Modifications	Implementation is longer and management is costly because the system is situated at various locations and on several servers.	Reduced time and cost. System implementation and expansion can be  managed in one location and in one  server.

Q.Discuss the need of improving customer relations.

Ans: Improving customer relations is important because it can lead to increased customer satisfaction and loyalty, which can translate into increased revenue for a company. When customers feel valued and have a positive experience with a company, they are more likely to continue doing business with that company and to recommend it to others. This is especially true in today's digital age, where customers have a wide range of options and can easily share their experiences with others through social media and online reviews. Additionally, improving customer relations can help to reduce customer churn, or the rate at which customers stop doing business with a company. This is important because acquiring new customers can be more expensive than retaining existing ones, so it is in a company's best interest to keep its customer base as loyal and satisfied as possible.

Q. State whether these statements are True or False:

a) A business progresses only by attaining a high level of customer satisfaction

Ans: True.

b) In order to improve rapport with customers, a retailer needs to deliver reliable customer service.

Ans: True.

Q. A sales associate in a retail store is trying to solve a customer service problem. (Arrange in order the steps he/she should follow while solving the problem.)

a) Check whether the solution finally selected is beneficial for both the parties (organization as well as customer)

b) Involve the customer in the problem-solving process

c) Identify the possible solutions of the problem along with the customer

d) Discuss the merits and demerits of each solution with the customer.

Answer: Arranged in Order:

b) Involve the customer in the problem-solving process

c) Identify the possible solutions of the problem along with the customer

d) Discuss the merits and demerits of each solution with the customer

a) Check whether the solution finally selected is beneficial for both the parties (organization as well as customer)