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MR.NIHAR MOHAPATRA

Acknowledgement
It is my sensual gratification to present this report. Working on this project was an incredible
experience that will have a tremendous impact on my career.
I would like to express my sincere thanks to my project guide MR. ARJUN KUMAR SAHU
for a regular follow up and valuable suggestions provided throughout.
She has always been an origin of spark and direction. I also thank all the respondents who have
given their valuable time, views and valid information for this project.
 NIHAR MOHAPATRA

Introduction to CRM
Before we begin to examine the conceptual foundations of CRM, it will be useful to
define, what is CRM? A narrow perspective of customer relationship management is database
marketing emphasizing the promotional aspects of marketing linked to database efforts. Another
narrow, yet relevant, viewpoint is to consider CRM only as customer retention in which a variety
of after marketing tactics is used for customer bonding or staying in touch after the sale is made.
Shani and Chalasani define relationship marketing as “an integrated effort to identify, maintain,
and build up a network with individuals consumers and to continuously strengthen the network
for mutual benefit of both sides, through interactive, individualized and value-added contacts
over a period of time”. The core theme of all CRM and relationship marketing perspectives is its
focus on co-operative and collaborative relationships between the firm and its customers, and/or
other marketing actors.

CRM is based on the premise that, by having a better understanding of the customers’
needs and desires we can keep them longer and sell more to them.

Growth Strategies International (GSI) performed a statistical analysis of Customer

satisfaction data encompassing the findings of over 7,000+ customer surveys conducted by
Angel Broking Ltd.

CRM (customer relationship management) is an information industry term for

methodologies, software, and usually Internet capabilities that help an enterprise manage
customer relationships in an organized way. For example, an enterprise might build a database
about its customers that described relationships in sufficient detail so that management,
salespeople, people providing service, and perhaps the customer directly could access
information, match customer needs with product plans and offerings, remind customers of
service requirements, know what other products a customer had purchased, and so forth.
The essence of the information technology revolution and, in particular, the World Wide
Web is the opportunity to build better relationships with customers than has been previously
possible in the offline world. By combining the abilities to respond directly to customer requests
and to provide the customer with a highly interactive, customized experience, companies have a
greater ability today to establish, nurture, and sustain long-term customer relationships than ever
before. The ultimate goal is to transform these relationships into greater profitability by
increasing repeat purchase rates and reducing customer acquisition costs. Indeed, this revolution
in customer relationship management or CRM.1 as it is called, has been referred to as the new
“mantra” of marketing.2 Companies like Siebel, E.piphany, Oracle, Broadvision, Net
Perceptions, Kana and others have filled this CRM space with products that do everything from
track customer behavior on the Web to predicting their future moves to sending direct e-mail
communications. This has created a worldwide market for CRM products and services of $34
billion in 1999 and which is forecasted by IDC to grow to $125 billion by 2004.3 The need to
better understand customer behavior and focus on those customers who can deliver long-term
profits has changed how marketers view the world.
Traditionally, marketers have been trained to acquire customers, either new ones who
have not bought the product category before or those who are currently competitors’ customers.
This has required heavy doses of mass advertising and price-oriented promotions to customers
and channel members. Today, the tone of the conversation has changed from customer
acquisition to retention. This requires a different mindset and a 3 different and new set of tools.
A good thought experiment for an executive audience is to ask them how much they spend
and/or focus on acquisition versus retention activities.
While it is difficult to perfectly distinguish the two activities from each other, the answer
is usually that acquisition dominates retention.
According to one industry view, CRM consists of:
 Helping an enterprise to enable its marketing departments to identify and target their best
customers, manage marketing campaigns with clear goals and objectives, and generate
quality leads for the sales team.
 Assisting the organization to improve telesales, account, and sales management by
optimizing information shared by multiple employees, and streamlining existing
processes (for example, taking orders using mobile devices)
 Allowing the formation of individualized relationships with customers, with the aimof
improving customer satisfaction and maximizing profits; identifying the most profitable
customers and providing them the highest level of service.
 Providing employees with the information and processes necessary to know their
customers, understand their needs, and effectively build relationships between the
company, its customer base, and distribution partners.
CRM--Customer Relationship Management--has entered the mainstream. Despite the
uncertainty of the economy, CRM is being thrust into corporate budgets and talked about as a
critical initiative by hundreds of Fortune 1,000 and tens of thousands of other companies. It has
gone from being an important edge in the business world to a necessary tool for survival. The
notion of the customer as king or queen is once again the rule. How you treat this is a mission-
critical business issue.
 But, what is CRM and how does it change the way companies do business? The changes
in the world have been so dynamic and so dramatic that the path is not necessarily all that
obvious. How CRM impacts that business path is a continuing source of debate in the world of
corporate management.
Managing relationships with customers has become a critical organizational competency.
Get winning strategies for acquiring and retaining customers by leveraging the latest advanced
technologies. This course will teach you how to select the right tools for your business-- so it can
grow today--and on into the future. Lagging means lost customers, which means damage to the
bottom line. But how do you not lag when customers are moving lightning fast to demand
constant changes in the speed to complete their transactions? How do you keep your customers
when the move to another company is nothing more than a mouse click and a minute away?
CRM is the answer. Customer Relationship Management, a strategy that leverages very
advanced technologies is the way to cut to the 21st Century business chase.