 Welcome the second semester learners of all MBA program, you are having your marketing management course and in that course unit 11 is about Customer Relationship Management. So, I am going to present before you this particular unit on Customer Relationship Management and this unit will be covered in three short videos and its video will be of about 10 and these three videos have been prepared based on the learning objectives which are outlined at the beginning of your study material. So, the first two learning objectives of this Customer Relationship Management is to understand the meaning of Customer Relationship Management and the second objective is to distinguish between relationship marketing versus relationship management. So, dear learners, Customer Relationship Management is very, very important as far as the planning and marketing execution of marketing function is concerned. So, we need to understand what this Customer Relationship Management is all about. In the simplest terms, it is the maintaining developing relationship with the customers but if we go deeper into the term, if we go deeper into the concept, there are lot many aspects. So, we shall try to delve into, we shall try to explain, we shall try to understand the concept of Customer Relationship Management from the entire perspectives in its holistic perspective. Then, after having an understanding of Customer Relationship Management, its concept, then we shall move into the second objective. The second objective is to distinguish between what is relationship marketing and relationship management. What are the basic differences? Let us try to understand the concept CRM, Customer Relationship Management. In short, it is stated as CRM. In today's context, we are talking about ECRM also in the context of the emerging importance of e-marketing. For that, let us first try to understand the concept, Customer Relationship Management. It is an integrated approach, means it is a holistic approach. It integrates lot many components and what are those components? It integrates the components of identifying, acquiring and maintaining customers. They are learners, each and every word is important. What is Customer Relationship Management? It is an integrated approach, an integrated approach of integrating what? Integrating, acquisition and maintenance and identification of customers. First of all, we need to identify the customers, who are our customers, whether they are very important customers, very, very important customers or not that important customers, who are our priority customers, what do they need? And then after identifying our potential customers, we need to equate them, customer acquisition. After they are acquired, after the identification, we shall acquire the customers. After the customer acquisition, we shall have to be highly concerned about maintenance of those customers, so that they do not deflect. So that our competitors do not take away our customers. So Customer Relationship Management is the integrated approach, is the integrated process towards identification of our genuine customers, profitable customers, potential customers. After identification, we need to acquire them and after acquisition, we need to sustain the relationship. So that is the concept. So they are learners, if you are asked that what is Customer Relationship Management, you have to say that Customer Relationship Management is an integrated approach, it is a holistic approach, it is a process of customer acquisition, customer identification, customer acquisition and then sustaining the relationship. So it is a process which allows companies to coordinate their approach across customers, channels and departments. So these three components will make the concept far more larger, CRM, because it is not only applicable only with customers, it depends upon whom are we going to define as customers. Even our central members, the retailers, distributors, they are also our customers. Our suppliers, they are also our customers. And within our organization, suppose our service department, pricing department, averaging department, we can consider them also as our internal customers. So Customer Relationship Management as such will embrace all the internal departments, our channel partners, our supplier partners and our customers. So CRM concept is broadened from that perspective. So what are the features of CRM, what are the important features, CRM system consists of a historical view. Since we shall identify the customers, we shall categorize them, we shall prioritize them based on their historical experiences, based on their historical transactions, based on our database records, as far as their purposes behavior is concerned. Then we shall, that will help us in reduce searching that who are our customers. Suppose in a hotel, one visitor is giving a call and the receptionist receives the call. Immediately after receiving the call, the ERM, ECRM system will give an alert that this is the call of Mr. So-and-so, who is a priority customer of the hotel. So in that case, the hotel receptionist might receive the call by name. Hello Mr. So-and-so, how are you? So that is the personalized relationship and that relationship will be facilitated by the recording system, the call recording system. So in that case, it will help us in reducing the stress, reducing the anxiety of looking for the entire database of the customers, but the technology itself will facilitate us in identification of the customers. Some other features of CRM, it contains each and every bit of details of the customer. Suppose one customer is diabetic and in the last visit to our hotel, he mentioned that his food habit should be for the presence of diabetes. So we have the record. So next time when that person visits us, so we can ask the person that how are you, how are you, what is the condition of your diabetes, is the blood sugar is in control, would you like to have special food like that. So that's a personalized kind of relationship, which the CRM will facilitate. So it is very easy for tracking a customer accordingly and it can be used to determine which customer can be profitable. So in that case, we can easily sustain the relationship. Another feature of CRM that customers are grouped, say there could be priority customers, there could be institutional customers, there could be government customers. We can group the, there could be the military customers, there could be the business customers. We can group the suppose in case of airlines, they have got a frequent players, those who frequently fly. So we can think about grouping the customers and accordingly we can divide certain schemes and promotions. So that's why at the same time, we can also categorize customers based on their location. Suppose these are the metro building and base customers, these are the rural customers, these are the urban customers. We can categorize them. These are the customers of this particular district, these are the customers of that particular town. So accordingly, we can target those customers with the help of these CRM packages. So then we can assign our own sales persons as account managers that you and you, that you are Mr. So and so, you please look after the metropolitan customers. Mr. Y, you please look after the rural customers, like that we can categorize them. So these helps us in focusing and concentrating on every customer separately. We can think about another feature of CRM because in CRM, we are extensively using technologies, information technologies. It's highly technology enabled. That's why it is very cheap and many times it is error proof provided we maintain our data base well. So all that this tells in CRM is kept centralized. So the database is centralized. So accordingly we can have a centralized approach as per the management of our customers are concerned. Then let us come to the other objective of this particular video. That's what is the difference between relationship marketing and relationship management. You see relationship marketing is basically functional approach as far as marketing is concerned. Whereas relationship management is an organizational approach. It will take care of all the suppliers, distributors, employees, internal departments, each and everyone who is concerned with the delivery and the design of service to the customers. So if the customer is satisfied, so in that case the organization will be benefited. So while relationship marketing is sales and marketing is basically sales and marketing related concept, but relationship management is basically organization wide. It refers to the entire tools and use carried by the organization. So some of the techniques which businesses use in relationship marketing, suppose for the as I have given the example airlines industry, they have the frequent player discount. So this is a particular scheme for the frequent players depending upon their flying hours with the particular airlines. Likewise we can induce the loyalty programs in the third part of this video. We shall discuss about the customer loyalty programs. So ultimately we can think about the individualized attention and we can expect the future needs and accordingly suppose many of the detailers they have the green card system, the loyalty cards. So this is what so you can avail the discount with the next process or in the current process. So customer relationship management allows a salesperson to quickly and consistently deliver the customers what the customers are looking for with each and every interaction. So it is a continuous management of the customer service that is points so that we can record the buying history and based on the buying history we can take about the next action. So CRM is used to describe information technology systems it is highly IT enabled and highly software designed. So depending upon the effectiveness of the software, depending upon the effectiveness of the IT devices the CRM effectiveness will be dependent on. So it is more and more we use the sophisticated strategies for the customer relationship management better and better will be the customer relationship management practices of our organization and that is ultimately will benefit the entire organization. So with this I conclude the first part of the video, I shall take up the other two videos the subsequent part with the other learning objectives thank you.