 Welcome learners to the concluding part of your unit 11 that is on Customer Relationship Management. This is the part 3 and this is the concluding part of this Customer Relationship Management unit. Dear learners, in the part 1 of the video we discussed about the concept of Customer Relationship Management, then we shall discuss about the differences between relationship marketing and relationship management. So, we discussed that Customer Relationship Management is very very important because it helps in improving customer retention. So, if we can improve the customer retention that will help us in minimizing the cost of customer acquisition because the cost of acquiring a new customer is several times higher than cost of retaining an existing customer. If we can maintain the existing customers in that case, but the existing customers themselves will help us in achieving the marketing objectives. We need new customers, but not always that we shall be always striving for the acquisition of new customers provided we can satisfy our existing customers. So, that is the essence of Customer Relationship Management and this is done through one aspect that is the sales and marketing, but basically it is an organization wide approach. The organization wide, the entire organization not only within the organization with the help of the suppliers, with the help of the distributors, vendors, dealers, retailers, wholesalers, organized retailers ultimately will have to embrace the entire customer relationship management. So, that spectrum is basically the relationship management spectrum compared to the relationship marketing spectrum of sales and marketing that is basically a functional approach, but ultimately we are all looking for an integrated approach. And the second part we discuss about the various forms of relationship management, operational CRM, analytical CRM and then the collaborative CRM all these indicate that database is very important and if the database is handled well, managed well, we will be able to implement the CRM and we can improve able to implement the CRM in various domains like say operational CRM, collaborative, analytical, even within operation also we can go for sales post automation, we can go for marketing automation, we can go for service automation these aspects we have already discussed in part 2 of this video of this unit. So, in this concluding part we shall discuss mostly about the two objectives. One is the possible reasons behind losing customers by an organization. Why do the organizations lose customers? What is the reason of customer strength case? What are the reasons of customer loss? Why the customers are deflecting or why the competitors are taking away our customers? And then second realizing the significance of customers relationship management. We have already discussed a lot about the significance of customers relationship management, but still in this concluding part I shall give you an example. Dear learners, if I ask you that what are the reasons behind losing customers by an organization? Why an organization loses its customers or why do the customers live an organization and deflect to the competitors? Definitely the customers are value conscious, they will look for those products which can give them the maximum benefits at the least cost. So, if the customers are satisfied they are unlikely to have any kind of reason for deflecting. Ultimately the customers may be satisfied better by the competitors compared to the current marketers. So, there are different reasons, these reasons could be it could be in terms of product, it could be in terms of price, it could be in terms of promotion, it could be in terms of distribution, it could be in terms of after-sales service, it could be in terms of the interaction between the sales force, there could be various reasons while the customers are lost by the organizations. Let us take some indicative reasons and these are the reasons which are stated in your learning method also and you can think about some other reasons also in addition to this. One reason could be wrong product pricing. So, pricing is not done adequately, suppose price is high, the customers are value maximizers, they will compare the price of our product, they will compare it with the prices offered by the competitors, the prices of competitors products, they will judge, they are value maximizers, the customers are having good judgment, so they can identify. So, it could be the wrong pricing decisions or it could be not appropriately reacting to the market forces. Suppose the competitors have recently cut the price and we are not responding to that, we have retained our existing price and the customers are allured, customers are attracted. Poor customer service, many times it is a major factor of losing customers, many times organizations do not understand the importance of giving maximum service to the customer. It is not about pampering the customers, the customers have a genuine need of having, why do the customers will visit an organization, they will be coming to the organization to satisfy certain needs. So, the organization should be able to address those needs at a given price. If the consumers are looking for the five star facilities in a budget hotel, they will not be rational, but while they are being staying in a budget hotel, they are having their own rational expectations. So, the marketers should be able to meet those minimum expectations. If the expectations can be made, the customers will be satisfied. So, to that extent, the marketers will have to gear up their service design and service delivery mechanism. It could be because of poor store atmosphere, suppose in a retailing premise, the customers may not like visiting their retailers, many times we ourselves experience those things. Suppose we are visiting one retailer, we do not know which item is lying where, there is no direction that this is the cosmetics division, this is the food division, this is this division, this is the clothing division, this is men's wear, this is women's wear, this is children wear. Suppose we are not given those directions and the things are not properly laid, things are not properly ventilated, not air conditioned, no temperature is maintained. So, customers will think twice about visiting those stores. So, poor store atmosphere could be another region. There could be not knowing the competition, we are highly indifferent to the competitive practices. So, that could be a big region that for the reflection of customers that we may not be able to retain the customers, they will automatically shift to the competitors because the competitors are giving them better services. Lack of product knowledge, suppose we are having good quality product, but our customer, so when our customers visit us, our salesperson are not in a position to display the right kind of product or suppose to handle the real customer queries. Customers are looking for certain products, but suppose our salesperson are not having the adequate knowledge of those products. So, they are not able to redress the customers, address the customer's needs or could be to redress the customer's grievances in terms of some product failure. So, these are some of the reasons for which the customers may be lost. So, in CRM system, we look for these possible losses and accordingly we shall try to devise the our CRM system. As I told you in the introductory video, the part one of the video of this customer relationship management is customer relationship management is basically adopts a historical view. What is the previous pattern of buying of the customers and what is the pattern, what is the relationship, when do they buy, how do they buy, why do they buy, who are they are involved in buying decisions, do they go for family buying or are they coming alone or we can go for the entire data mining and we can identify the customers, the profitable customers, the category wise customers, we can think about prioritizing them like that. Because we are having all the details of the customer, what do they buy, how much do they buy, when do they buy, we can having all those information. As I have given the example, in a hotel if a diabetic patient visits, so that is recorded in the hotel that the patient is diabetic is looking for diabetic food. So, in the next definitely we can ask the patient that it was a frequent player, these are the common examples which I have been citing repeatedly, so that you can relate the concepts with these common examples. I can give you another example. Suppose in a business organization, they purchase the photocopier. So, before processing the photocopier, the photocopier company is like say Canon, etcetera, we will have to visit them, Canon Rico will visit them, they will spell out their needs that we need a photocopier of this shop. So, depending upon the sales force interaction, depending upon the price, depending upon various factors, suppose decision will be made that we shall go for processing a photocopier message. So, for the purpose of our discussion, the organization decides that we shall purchase a Canon photocopier. So, immediately after purchase, there will be a free service maybe for say one year. So, one year free service means what? Though that will be free service, but the services will have to be given, so that the photocopier keeps on giving good service. After one year, suppose there could be one annual maintenance contract that we shall give you the service provided you pay as a fee of the shop. So, annual maintenance contract, one is over, the second annual maintenance contract, the third annual maintenance contract, suppose sixth annual maintenance contract at the end of sixth annual maintenance contract, the company might come and say, okay, give us your old machine, we shall supply you a new machine. If I am satisfied with your services for the last six years, definitely I shall look for, okay, why not, we can go for your proposal. So, that is basically customer relationship management. So, in CRM system, we can have those customers that these are loyal customers, these are the customers who are our high patronage customers and we should give our best of our services, we can do all those practices. So, a CRM is not only deal to it existing customers, it is for all acquiring in new customers and a new channel partners. And the strongest aspect is that it is very cost effective because it makes use of technology, precise, exact and many things are kept centralized, the centralized database. So, that helps, we can share the database with our field counterparts, with our functional counterparts, but it is basically central database. So, that is why it helps us in adopting a centralized approach and definitely all these things will help us in improving our marketing. So, it is cost effective, it is cost efficient and we can be highly effective and efficient in improving our marketing productivity. So, that is why the organizations are definitely also looking forward to adoption of a full-fledged CRM system to cope up with all their business needs. So, this is all about unit 11 on customer relationship management. Dear learners, you read the SLM and hope after this video you will be able to understand the concepts in a far easy manner. Thank you very much and I wish you all the best.