Page 100 - DMGT510_SERVICES_MARKETING

Unit 5: Customer Relationship Management in Services

All of these considerations would need to be factored in a lifetime value model depending on Notes
the industry and company where CRM is to be implemented.



Caselet New Social CRM Capabilities at Microsoft
s part of Microsoft’s long-term vision for social CRM (whereby the product could
be the central location for businesses to manage all their relevant important
Arelationships and interactions), Microsoft Dynamics CRM will feature new social
collaboration capabilities.

Chiefly, those capabilities will be:
 Micro-blogging: Users will receive status updates and notifications regarding business
events and actions, bringing simple experiences for users similar to those of Facebook
and Twitter.
 Activity feeds: The software will deliver configurable real-time notifications on all
important relationships and significant business events via a blended view of micro-
blog posts and all interactions for a person, customer or sales opportunity.

 Conversations: Users will be able to post questions, observations, suggestions and
status updates, allowing them to collaborate quickly and efficiently, locate
information or expertise and gather feedback from others.

 Automated activity updates: Users will be free to post information directly to the
activity feed based on configurable event rules, noting, for example, that a sales
opportunity is closed. Users will be able to subscribe to or ‘follow’ activity feeds,
and consume them in a variety of ways.

 Windows Phone 7 mobile application: This will allow users to view their activity
feeds anywhere.

Source: www.enterpriseappstoday.com
Self Assessment

Fill in the Blanks
15. For the calculation of CLV, ……………… costs are not taken into consideration.
16. CLV can be calculated s: Avg. sale × No. of purchases/year × Stay of customer ×
………………
5.7 Summary

 CRM is a business strategy that goes beyond increasing transaction volume. Its objectives
are to increase profitability, revenue, and customer satisfaction. To achieve CRM, a
company-wide set of tools, technologies, and procedures promote the relationship with
the customer to increase sales.

 It is more expensive to acquire customers than retain customers. But customer retention
becomes a challenge in the era of heightened competition and decreasing customer loyalty.
Various researches point out to the fact that customer acquisition is five to ten times more
expensive than customer retention.

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