UNIT-1

Q.1 what is CRM?

CRM stands for Customer Relationship Management. It is a system or strategy that businesses use
to manage their interactions with customers. The goal of CRM is to build strong relationships with
customers, improve sales, and provide better service.

Think of CRM like a digital diary for a business, where all customer details, communication history,
and preferences are stored. For example, when you call customer support and they already know your
past purchases and issues, that’s because they are using a CRM system to track your details.

Q.2 Three Forms of CRM or TYPE of CRM

1. Operational CRM or OPERATIONAL CRM TOOL

Operational CRM is a type of Customer Relationship Management (CRM) that
focuses on automating and improving daily business operations such as sales,
marketing, and customer service.
Operational CRM as a smart assistant that helps businesses manages customer
interactions smoothly by automating repetitive tasks and ensuring faster
responses. This helps companies save time, increase efficiency, and provide
better customer service.
Key Applications of Operational CRM
1. Sales Force Automation (SFA)
Sales Force Automation helps sales teams work more efficiently. Imagine you have a sales team that has to
track hundreds of customers and leads. Without automation, it can be hard to keep track of everything. With
SFA, the system helps salespeople manage their contacts, keep track of potential sales, and make sure no
opportunities are missed. For example, when a salesperson gets a new lead (a potential customer), the system
helps them follow up and track the progress until the sale is closed.

2. Marketing Automation
Marketing Automation is all about automating marketing tasks so that companies can send messages or ads to
customers without having to do everything manually. For instance, when you visit a website and sign up for
their newsletter, the company might automatically send you a welcome email, followed by more personalized
offers based on what you liked.

This automation helps businesses send the right messages to the right people at the right time. It can
automatically organize customers into groups (based on things like their age, where they live, or what they
like), so the marketing team can send messages that feel personal to each group.

3. Service Automation
Service Automation focuses on helping customer service teams solve customer problems quickly and
efficiently. When a customer has an issue (like a broken product or a question), the system automatically
creates a "ticket" to track the problem until it's solved.

This might also include things like a chatbot that can answer simple questions on the company's website or a
help centre where customers can find answers themselves.
Analytical CRM or CRM OF Analytical

Analytical CRM is all about understanding customer data. It collects information about customers (like what
they buy, how often they contact the company, what they like or dislike), and then uses that information to
help businesses make better decisions.

This type of CRM gathers information from different sources, such as sales records, customer feedback,
website visits, and social media interactions. It then processes this data to find patterns, trends, and insights.
Businesses use analytical CRM to improve customer service, create more effective marketing campaigns, and
increase sales.

Key component of Analytical CRM

1. Data Collection: This is where it all begins. The system gathers customer
data from many places—like websites, social media, emails, surveys, purchase
history, and customer service calls. Every interaction with a customer becomes
part of this database.

2. Data Warehousing: Once the data is collected, it needs to be stored in an

organized way. That’s what a data warehouse does. It keeps all the data safe and
in one place, so it’s easy to find and use later.
3. Data Mining: This is where the system starts looking for patterns and insights
in the data. It analyses the information to find answers to questions like:
 What do customers like to buy?
 When do they usually shop?
 What makes them stop buying?

Data mining is like a detective that finds hidden trends in customer behaviour.

4. Online Analytical Processing (OLAP): OLAP is a tool that helps businesses

look at data from different angles. For example, a company can see how sales
change based on time, region, or product type.
5. Customer Segmentation
Businesses use Analytical CRM to group customers based on their preferences,
buying habits, and demographics. This helps companies send the right offers to
the right people instead of treating all customers the same.
6. Sales Forecasting
Analytical CRM helps businesses predict future sales based on past trends and
customer behaviour. This allows businesses to prepare for demand and stock the
right products.
3. Collaborative CRM

Collaborative CRM is all about teamwork. It helps different departments in a business—like sales, marketing,
and customer service—work together by sharing customer information. The goal is to give customers a
smooth and consistent experience, no matter who they talk to.

Imagine you contact a company for support, and then later speak to their sales team. With Collaborative CRM,
the sales team already knows your issue because that information is shared across departments. So, you don’t
have to explain everything all over again. That makes your experience better and faster.

Key Applications of Collaborative CRM

1. Improved Customer Support: One of the most important applications of
Collaborative CRM is better customer service. When a customer contacts
support, the representative can instantly access all necessary information
without asking repetitive questions

2. Multi-Channel Communication: Customers use different ways to

communicate with businesses—phone calls, emails, social media, and live chat.
Collaborative CRM brings all these channels into one system so businesses can
respond quickly.

Q.3 The Changing Face of CRM: How CRM is Evolving

Customer Relationship Management (CRM) has changed a lot over the years. Earlier,
CRM was mainly used as a database to store customer contacts and sales records. But
today, CRM has become a powerful tool that helps businesses understand
customers, automate processes, and improve customer experiences.

1. from Basic Contact Management to AI-Powered CRM

Old CRM (Basic Contact Storage):
 Earlier, CRM systems were used only to store customer names, phone
numbers, and email addresses.
 Sales teams would manually enter customer data and track conversations.
 Businesses mainly used CRM to store and organize customer details but didn’t
analyse the data deeply.
New CRM (AI-Powered & Smart Automation):

 Today, CRM systems use Artificial Intelligence (AI) to predict customer

behaviour and suggest the best actions.
 AI helps businesses know when a customer is likely to buy a product and
what kind of offers they prefer.
 CRM can automate emails, reminders, and responses, saving time and
increasing efficiency.

2. from Desktop Software to Cloud-Based CRM

Old CRM (Limited to Office Computers):
  Earlier, CRM software had to be installed on company computers and could
only be accessed from the office.
 Businesses had to invest in expensive servers to store customer data.

New CRM (Cloud-Based & Accessible from Anywhere):

 Today, most CRMs are cloud-based, meaning businesses can access customer
data from anywhere using the internet.
 Cloud CRM solutions like Sales force, Hub Spot, and Zoho CRM allow
employees to work remotely and stay connected.

3. from One-Way Communication to Multi-Channel Engagement

Old CRM (Only Phone Calls & Emails):

 Earlier, businesses only used phone calls and emails to communicate with
customers.
 Customer queries were manually handled by sales and support teams.

New CRM (Omnichannel Communication – Social Media, Chatbots & More):

 Modern CRM systems integrate with multiple platforms like WhatsApp,

Facebook, Instagram, and live chat to communicate with customers.
 Businesses can use Chabot’s to answer common questions automatically.
 Customers can contact businesses anytime, from anywhere, using their
preferred platform.

4. from Manual Work to Full Automation

Old CRM (Manual Data Entry & Follow-Ups):

 Earlier, businesses had to manually enter customer details, schedule follow-

ups, and send emails.
 Sales teams had to track leads and remind themselves to call customers.

New CRM (Automated Processes & Smart Notifications):

 CRM software can now automatically send personalized emails, schedule

follow-ups, and even remind sales teams about important meetings.
 Businesses can automate customer engagement and ensure no lead is
forgotten.

5. from Static Reports to Real-Time Data Analytics

Old CRM (Basic Reports & Limited Insights):

 Businesses could generate simple reports on sales and customer interactions.

 Reports were static and had to be created manually.

New CRM (Real-Time Dashboards & Predictive Analytics):

 Today, CRM systems offer real-time dashboards with live data on sales,
customer behaviour, and campaign performance.
 Businesses can use predictive analytics to make better decisions.
Q.4 Misunderstandings about CRM
❌ Misunderstanding 1: "CRM is just software"

Many people think CRM is only a tool or an app you install. But in reality, CRM is much more than just
software. It’s a strategy—a way of thinking about how to build better relationships with customers. The
software just helps you carry out that strategy.

❌ Misunderstanding 2: "CRM is only for big companies"

Some believe only large companies need CRM. That’s not true. Small and medium businesses also benefit
from CRM, maybe even more, because it helps them stay organized, build trust, and compete with bigger
companies.

❌ Misunderstanding 3: "CRM is only for the sales team"

It’s easy to assume CRM is just for salespeople, but it actually helps marketing, customer service, support
teams, and even management. Everyone who interacts with customers can use CRM to do their job better.

❌ Misunderstanding 4: "CRM is only about storing customer information"

CRM does store customer data, but that’s just the beginning. Modern CRM systems can track customer
behaviour, send automated messages, analyse data, create reports, and even predict future customer actions.

❌ Misunderstanding 5: "CRM is too complicated to use"

Modern CRMs are becoming much easier to use. Many of them have simple interfaces, mobile apps, drag-and-
drop tools, and helpful tutorials. Plus, many CRM providers offer support and training to help users get
comfortable.

Q.5CRM Constituencies

CRM (Customer Relationship Management) constituencies refer to the different groups or stakeholders who
interact with a CRM system and benefit from it. These groups include customers, employees, and business
partners, each playing a crucial role in managing customer relationships effectively.

1. Customers
Customers are the most important part of CRM because the system is designed to improve their experience
and satisfaction. A good CRM system helps businesses understand customer needs, preferences, and buying
behaviour. It ensures that customers receive personalized services, quick responses to their inquiries, and
better support. For example, if a customer has previously purchased a product, the CRM can suggest related
items or remind them when they might need a replacement. Customers also benefit from self-service options,
like FAQs or chatbots, making their interactions with a business smoother.
2. Employees (Sales, Marketing, and Support Teams)
Employees use CRM to manage customer relationships more efficiently. Sales teams use it to track leads,
follow up with potential customers, and close deals more effectively. They can see customer history and
preferences, helping them provide personalized recommendations.

Marketing teams use CRM to create targeted campaigns, track customer engagement, and analyse data to
improve their strategies. They can send personalized emails, promotions, or advertisements based on
customer interests.

Customer support teams benefit from CRM by having all customer information in one place. This allows them
to quickly address issues, track complaints, and provide better service. For example, if a customer calls with a
problem, the support agent can instantly see past interactions and offer a solution without making the
customer repeat their issue.

3. Business Partners (Suppliers, Vendors, and Distributors)

Business partners also benefit from CRM as it helps improve coordination and communication. Suppliers and
vendors can access order histories, track deliveries, and ensure that products are available when needed.
Distributors can use CRM to manage inventory and understand customer demand trends. This improves the
overall supply chain and ensures businesses can provide a better experience to customers.

Q.6 Models of CRM

CRM (Customer Relationship Management) models help businesses manage relationships with customers
efficiently. These models provide a structured approach to improving customer interactions, increasing sales,
and enhancing overall business performance. There are several CRM models, each focusing on different
aspects of customer relationships.

IDIC Model (by Peppers and Rogers)

The IDIC model is a relationship-based approach to CRM. It says that in order to build
strong relationships with customers, a business needs to follow four main steps. First,
it must identify who its customers are by collecting detailed information about them.
Once the customers are known, the next step is to understand how they are
different. Not every customer has the same needs or value, so businesses should
group them based on their behaviour, preferences, or how valuable they are to the
company. After that, the company should interact with the customers in meaningful
ways. These interactions help build trust and allow the business to learn more about
the customer over time. Finally, the business uses what it has learned to customize
the experience for each customer. The main goal of this model is to create a
personal, one-to-one relationship with each customer, making them feel understood
and valued.

Payne’s Five-Process Model

Payne’s model looks at CRM as a full business process that involves careful planning
and execution across five key areas. It begins with developing a strong strategy. This
means making plans not just for business growth but also for how the company will
manage relationships with customers. Once the strategy is in place, the business
needs to think about value—how to create value for customers and how that value
will benefit the company in return. Then comes the integration of different channels,
which means making sure that all the ways a customer interacts with the company
(such as online, in person, or on the phone) feel connected and consistent. To
support this, the business must manage customer information well, collecting and
analyzing data to better understand and serve the customer. Finally, the business
has to measure its performance to see if the CRM efforts are actually working. This
model helps businesses set up a full, end-to-end system for managing customer
relationships effectively.

CRM Value Chain Model

The CRM Value Chain model focuses on the idea that strong customer relationships
bring long-term success. It encourages businesses to start by analysing their
customer base to identify which customers are most valuable. Once they know this,
businesses should try to understand those customers deeply—what they need, want,
and expect. But it’s not just about customers; the company also needs to build
strong connections with suppliers, employees, and partners who help deliver value to
the customer. The next step is to create an attractive offer or experience that gives
customers a reason to stay loyal. Finally, the company must actively manage the
customer relationship through continuous engagement and service. Supporting this
process are key internal elements like company culture, leadership, skilled people,
and good technology. This model is focused on creating loyalty and value in the long
run, not just quick sales.

Gartner’s CRM Model

Gartner’s model explains CRM as a system that helps companies gain, keep, and
grow customers. It starts with customer acquisition, which means attracting new
people to try the product or service. After that, the goal is to retain those customers
by keeping them happy and satisfied. Once they become loyal, the business focuses
on customer development—encouraging them to buy more or upgrade to better
services. Throughout this process, it’s important to understand how valuable each
customer is to the company. Gartner’s model also reminds us that CRM success
depends on people, processes, and technology. The right employees must be
trained, business processes must support relationship-building, and technology must
be used wisely to support the entire customer experience. This model is practical and
business-focused, helping companies use CRM not just as a tool, but as a full strategy
to grow and improve customer relationships.

Q.7 Understanding Relationship in CRM

In CRM, a "relationship" refers to the connection between a business and its customers. A strong relationship
ensures that customers stay loyal, feel valued, and continue to do business with the company.
2. Data Management

Definition: Collecting, organizing, and leveraging customer data to gain insights into
preferences, behaviours, and interactions. Proper data management allows businesses to
tailor their offerings, personalize communications, and anticipate customer needs.

3. Customer Segmentation

Definition: Categorizing customers into groups based on shared characteristics or

behaviours. Segmentation enables targeted marketing, personalized messaging, and the
creation of specific strategies for different customer segments.

4. Multi-Channel Interaction

Definition: Engaging with customers through various communication channels such as

email, social media, phone, and in-person interactions. Adopting multiple channels
accommodates diverse customer preferences, providing flexibility in communication..

6. Feedback and Surveys

Definition: Seeking customer opinions and insights through surveys, reviews, and direct
feedback mechanisms.

Gathering feedback helps businesses gauge satisfaction levels, identify areas for
improvement, and make data-driven decisions.

8. Customer Service and Support

Definition: Providing timely and effective assistance to customers throughout their

interactions with the business. Exceptional customer service builds trust, resolves issues
promptly, and contributes to long-lasting customer relationships.

9. CRM Technology

Implementing CRM software and tools to streamline customer data management,

automate processes, and enhance communication. CRM technology facilitates efficient
relationship management, allowing businesses to stay organized and responsive.

10. Continuous Improvement

Definition: Regularly assessing CRM strategies, processes, and outcomes to identify

areas for enhancement. Continuous improvement ensures that businesses adapt to
changing customer expectations and market dynamics, optimizing their CRM efforts.

Q.8Customer Satisfaction in CRM

Customer satisfaction in CRM (Customer Relationship Management) refers to how happy
and satisfied customers are with a company’s products, services, and interactions. A
satisfied customer is more likely to stay loyal, make repeat purchases, and recommend
the business to others. CRM systems help businesses track, measure, and improve
customer satisfaction by personalizing interactions, resolving issues quickly, and offering
better services.
Factors Affecting Customer Satisfaction in CRM

Several factors influence customer satisfaction in CRM. Businesses must manage these factors to keep
customers happy.
a) Product Quality and Service
Customers expect high-quality products and services that meet their needs. If a product
works well and lasts long, customers are satisfied. For example, Samsung ensures high-
quality smartphones with great features, leading to customer satisfaction.
b) Customer Support and Assistance
Quick and helpful customer support improves satisfaction. Customers want their issues
resolved without long waiting times. For example, Amazon offers 24/7 customer service
with fast refunds and replacements, making customers happy.
c) Personalization and Customization
Customers feel valued when businesses personalize their experience based on
preferences and purchase history. CRM helps businesses track customer data and offer
tailored recommendations. For example, Netflix suggests movies and shows based on
what a user watches, improving satisfaction.
d) Communication and Engagement
Clear and effective communication builds trust. Customers appreciate timely updates
about their orders, promotions, and services. For example, an airline sending SMS
notifications about flight delays keeps passengers informed, reducing frustration.
e) Pricing and Discounts
Fair pricing and attractive discounts make customers feel they are getting value for their
money. For example, McDonald’s offers meal combos at discounted rates, increasing
customer satisfaction.
f) After-Sales Service
Good after-sales service, like warranties, returns, and technical support, ensures
customers remain satisfied even after purchasing. For example, Dell provides free
customer support for a year with its laptops, making customers feel secure about their
purchase.

Chapter-2

Q.9 what is Customer Acquisition?

Customer Acquisition is the process of attracting new customers to buy your product or service. It involves
different strategies and methods to get people interested in what you offer and convert them into paying
customers. A successful customer acquisition strategy ensures that businesses continue to grow and generate
revenue by constantly gaining new customers. Steps in Customer Acquisition

Step 1: Awareness
This is where it all begins. Before anyone becomes a customer, they need to first
know that the business exists. So the goal here is to get noticed.

Companies use advertising, social media, content (like blogs or videos), events,
influencers, and even word of mouth to reach new people. Think about when you
scroll through Instagram and see an ad for a cool product you’ve never heard of—
that’s the awareness stage.
Step 2: Interest
Now that someone knows about the product or service, the next step is to get
them interested enough to want to learn more. This step is about giving them
reasons to pay attention.

This is where businesses might show more details about what they offer—how it
works, what problems it solves, or why it’s better than other options. They might
do this through engaging website content, product videos, customer testimonials,
or helpful articles.

Step 3: Consideration
At this point, the potential customer is thinking about buying, but they’re still
comparing their options. They might be looking at prices, reading reviews, or
checking out competitors.

The job of the business here is to build trust and show value. They might offer a
free trial, a demo, a special discount, or comparison guides to help people make a
decision. Businesses often use email marketing, follow-up messages, or
retargeted ads to stay in touch during this phase.

Step 4: Conversion
This is the exciting moment when the potential customer finally decides to
buy. It’s called a “conversion” because the person has now changed from a lead
into an actual customer.

To help make this happen, businesses try to make the buying process as smooth
as possible. They’ll offer simple checkout processes, secure payment options, and
great customer support. Sometimes, a limited-time offer or free shipping can
push someone to take that final step.

Step 5: Follow-up and Relationship Building

Even though this step comes after the sale, it’s still part of the customer
acquisition cycle in a broader sense—especially if you want to turn new
customers into loyal ones who buy again or tell others.

Businesses stay connected through thank-you messages, satisfaction surveys,

loyalty programs, and helpful tips. Happy customers often recommend products
to friends, which can lead to new customer acquisitions through referrals.

Q.10 Prospecting

Prospecting is the process of finding and reaching out to potential customers who may be interested in a
business's products or services. These potential customers are called prospects. The goal of prospecting is to
identify, engage, and convert them into actual buyers.

Prospecting is an important step in sales and marketing because businesses need a continuous flow of new
customers to grow. It involves researching, contacting, and nurturing leads to turn them into loyal customers.
Steps in Prospecting

1. Identify Your Ideal Customer

Think about who you want to sell to. What kind of person or business would
need your product or service? This helps you focus on the right people.
2. Search for Potential Customers (Prospects)
Look for people or businesses who match your ideal customer. You can find
them online, on social media, in business directories, through referrals, or at
events.
3. Qualify the Prospects
Not everyone you find will be a good fit. So, check if they really need your
product, if they can afford it, and if they are the decision-makers. This helps
you focus only on the best prospects.
4. Reach Out to the Prospects
Start contacting them through calls, emails, messages, or face-to-face
meetings. Introduce yourself and your product in a friendly and helpful way.
5. Build a Relationship
Don’t try to sell immediately. Start a conversation, understand their needs,
and build trust. People are more likely to buy from someone they trust.
6. Track and Follow Up
Keep notes of who you talked to, what they said, and when to contact them
again. Following up at the right time is very important in turning a prospect
into a customer.

Q.11 Customer Retention

Customer retention refers to a business's ability to keep its existing customers over time and encourage them
to continue buying products or services. Instead of focusing only on attracting new customers, retention
ensures that current customers remain loyal and engaged with the brand.

Strategies to Improve Customer Retention

1. Give Great Customer Service
Always treat your customers with kindness and respect. Help them quickly when they have a problem or
question. People remember how you make them feel, so good service makes them want to stay.

2. Stay in Touch Regularly

Send friendly emails, newsletters, or messages to keep customers updated about new products, offers, or
helpful tips. This helps them feel connected to your brand.

3. Offer Loyalty Rewards

Give something extra to your regular customers—like discounts, free gifts, or points they can collect and
redeem. It makes them feel special and gives them a reason to return.

4. Ask for Feedback—and Use It

Ask customers what they think about your product or service. If they have complaints, listen carefully and try
to fix the problem. When customers feel heard, they’re more likely to stick with you.
5. Personalize the Experience
Treat customers like individuals, not just numbers. Use their name, remember their preferences, and suggest
products they might like. People appreciate when a business makes them feel important.

6. Deliver Consistent Quality

Make sure your product or service is always good—every time. If people trust that you’ll deliver the same
quality, they’ll keep coming back.

7. Surprise Them in a Good Way

Sometimes, a small surprise—like a thank-you note or a small freebie—can leave a big impression. It shows
that you care, and customers love that extra touch.

8. Build Trust over Time

Be honest, reliable, and transparent. When people trust you, they stay loyal. Don’t make promises you can’t
keep, and always fix mistakes when they happen.

Q.12What is Customer Perceived Value?

Customer Perceived Value (CPV) is the worth or importance a customer assigns to a
product or service based on its benefits versus its costs. It is not just about price but
also about quality, experience, brand reputation, and emotions. For example,
when people buy an Apple iPhone, they don’t just look at the cost—they also consider
the brand's reliability, advanced features, ease of use, and status symbol. This
overall impression is their perceived value.

Steps in Modelling Customer Perceived Value

Step 1: Understand What Customers Want

First, you try to understand what matters most to your customers. What are they looking for? Is it low price?
High quality? Fast delivery? Good service? Every customer may value different things, so you need to research
and find out what’s important to your customers.

Step 2: Identify All the Benefits You Offer

Now, look at what your product or service gives to the customer. These are called benefits—things that make
life better, easier, or more enjoyable for the customer. These can be functional (like speed or features),
emotional (like feeling confident), or social (like impressing others).

Step 3: Identify All the Costs for the Customer

Next, think about what the customer has to give up to get your product. It’s not just about money. Costs can
also include time, effort, risk, or even stress. For example, if a website is slow or confusing, that’s a cost too—
even if the product is cheap.

Step 4: Compare Benefits and Costs

Now that you know the benefits and the costs, you compare them. If customers feel the benefits are greater
than the costs, they see high value. But if the product is expensive, hard to use, or causes problems, they
might think it’s not worth it. This is the key step in modelling perceived value— seeing it from the customer’s
eyes, not just the company’s.
Step 5: Measure and Improve

Once you have an idea of how customers see the value, you can start measuring it through surveys, feedback,
reviews, and ratings. Then, use that information to make improvements—maybe by lowering the price, adding
features, or improving service.

Q. 13what is Customization in CRM?

Customization in CRM means modifying the CRM system to fit a business’s unique needs. Instead of using a
one-size-fits-all system, businesses can adjust features, add new tools, and personalize workflows to improve
efficiency. Example: A retail business may customize its CRM to track customer purchase history, while a
hospital may customize it to track patient appointments.

Types of CRM Customization

1. User Interface (UI) Customization

This type of customization changes how the CRM looks and feels to users. It’s like rearranging the furniture in
your house to make it more comfortable. You might change:

 The layout of the dashboard

 The color themes or branding
 What menus or buttons appear for different users
 Which fields (like Name, Email, Notes) show up on a customer’s profile

This makes the CRM easier for your team to use, and they see only what they need—not extra stuff that
clutters the screen.

2. Workflow and Process Customization

Every business has its own way of working. This type of customization lets you automate tasks and set up the
CRM to follow your business process. For example:

 You can create a rule that sends an automatic email when a new customer signs up
 You can set up approval flows (like sending a request to the manager before a discount is applied)
 You can build step-by-step processes for sales, customer service, or follow-ups

This saves time and makes sure everyone is following the same method.

3. Data Field Customization

CRM systems usually come with standard fields like name, phone, and email. But your business might need
extra fields to collect special information. For example, if you run a car rental business, you might add fields
like:

 Vehicle preference
 License number
 Rental history

This type of customization lets you create new fields or change existing ones, so you can store exactly the
information you need.
4. Report and Dashboard Customization
Reports help you understand how your business is doing. But every business needs to track different things.
This type of customization allows you to create custom reports and dashboards. For example, you can:

 Track sales by region

 See customer satisfaction scores
 Monitor how many support tickets are solved each day

Customized dashboards help you focus on what really matters to your business—and make better decisions.

5. Integration Customization
Most businesses use other tools besides their CRM—like email marketing platforms, accounting software, or
e-commerce sites. Integration customization helps you connect your CRM with these other tools. For
example:

 Connect your CRM with Gmail or Outlook to track emails

 Link your CRM to WhatsApp or social media messages
 Sync customer data with your accounting software

This way, everything works together smoothly, and you don’t have to switch between apps all the time.

6. Role-Based Access Customization

Not everyone in your team needs to see everything in the CRM. This type of customization lets you control
what different users can see or do. For example:

 A salesperson can see customer contacts and sales history

 A support agent can see service tickets
 A manager can see reports and team performance

This keeps data safe and makes the system more organized.

7. Mobile App Customization

Many CRMs have mobile apps so teams can work from anywhere. This customization changes how the CRM
app works on smartphones or tablets. You can:

 Hide unused features for mobile users

 Simplify the layout for quick use on the go
 Add shortcuts to speed up tasks

It helps field teams or sales reps work more efficiently while traveling.

Q.14 what is Total Quality Management (TQM) in CRM? Or Use in relation

management

Total Quality Management (TQM) is a business approach that focuses on

improving the quality of everything a company does—from products and
services to customer care. The goal is to make customers happy and keep
improving all the time.
When we apply TQM to CRM, it means using those quality principles to improve
how we build and manage relationships with customers.

Key Principles of TQM in CRM

1. Customer Focus
The most important part of TQM is putting the customer at the centres. In CRM, this means understanding
what your customers need, what they like, and what problems they face. Then, you do everything you can to
make them happy and satisfied. Happy customers stay longer, buy more, and tell others about your business.

2. Continuous Improvement
TQM says there’s always room to get better. In CRM, this means always looking for ways to improve how you
talk to customers, how you solve their problems, how quickly you respond, and how smooth their experience
is. Even small improvements can make a big difference over time.

3. Employee Involvement
TQM believes that every employee matters, not just the managers. In CRM, this means training your staff to
treat customers well, encouraging teamwork, and letting employees share ideas for improving customer
service. When everyone is involved, customer care becomes stronger.

4. Process-Cantered Thinking
TQM focuses on fixing and improving processes, not just blaming people for mistakes. In CRM, this means
creating smooth, clear processes for things like handling complaints, replying to messages, or following up
after a sale. Good processes = fewer mistakes and happier customers.

5. Fact-Based Decision Making

TQM says that decisions should be based on data, not guesses. In CRM, this means using customer data (like
feedback, surveys, purchase history) to understand what’s working and what needs to improve. For example, if
many customers are unhappy about delivery time, you can fix that based on real facts.

6. Integrated System
In TQM, all departments should work together like parts of a machine. In CRM, sales, marketing, and customer
service teams should share information and work as a team to serve customers better. This avoids confusion
and gives customers a smooth experience.

7. Communication
TQM believes that good communication helps the whole system work better. In CRM, that means
communicating clearly inside the team and with customers—so that everyone knows what’s happening, and
nothing gets missed. Good communication builds trust.

UNIT-2
Q.1 (CPM)

Q.2 Seven Core Customer Management Strategies

Q.3 Basic Discipline of CPM

Customer Portfolio Management" (CPM) refers to the strategic process of managing a company's relationships
with its customers in a way that maximizes long-term value and profitability .CPM helps businesses allocate
resources effectively, tailor marketing strategies, and strengthen customer relationships.

1. Customer Segmentation
Every customer is different, and businesses cannot treat all customers the same way.
Customer segmentation means dividing customers into groups based on their
characteristics, such as age, location, buying habits, and interests.

2. Personalized Customer Experience

Customers feel valued when businesses understand their preferences and offer
customized experiences. Personalization means tailoring products, services,
and communication to match each customer’s needs.

3. Proactive Customer Service

Instead of waiting for customers to ask for help, businesses take action in advance
to make their experience better. Proactive customer service means anticipating
customer needs and solving problems before they arise.

4. Customer Loyalty Programs

Loyal customers are very important for any business. To keep them engaged,
companies use loyalty programs that reward customers for their repeat purchases.
These programs encourage customers to stay with the brand.

5. Customer Feedback and Improvement

Listening to customers is one of the best ways for a business to improve. Companies
collect customer feedback through surveys, reviews, and social media to
understand what customers like and what needs improvement.

6. Multi-Channel Communication
Customers interact with businesses in many ways, such as phone calls, emails,
social media, live chat, and websites. A business must be available on multiple
channels to provide quick and effective support.

7. Data-Driven Decision Making

Businesses collect and analyse customer data to make smart decisions. Data helps
companies understand what customers like, what they buy, and how they interact
with the brand.

Q.2 Customer Portfolio Management (CPM) in B2B Context

Customer Portfolio Management" (CPM) refers to the strategic process of managing a company's relationships
with its customers in a way that maximizes long-term value and profitability .In a B2B environment, companies
don’t just focus on selling a product or service once—they aim to build strong, on-going relationships with
their clients. Each customer (or company) in the portfolio may have different needs, budgets, and levels of
profitability. CPM helps businesses analyse these differences and decide how to allocate resources, customize
services, and manage risks.
Note: Explain Key Components of Customer Portfolio Management

Q.3 Customer Portfolio Models

Customer Portfolio Models help businesses understand and classify their customers
based on different factors. These models assist in making better marketing and sales
decisions, improving customer relationships, and maximizing profitability. By using
these models, businesses can identify high-value customers, predict future
behavior, and develop strategies to retain and attract customers.

There are various types of Customer Portfolio Models, including Bivariate,

Trivariate, SWOT, PESTE, and Five Forces Models. Let’s explore each of them
in an easy and simple way.

1. Bivariate Model

The Bivariate Model is a simple way to analyse customers based on two factors
(or variables). It helps businesses compare two important customer characteristics
to identify patterns and make decisions.

 Purchase Frequency (how often they buy)

 Average Spending (how much they spend per purchase)

By plotting these two factors on a chart, businesses can identify high-value

customers (who buy often and spend more) and low-value customers (who
buy rarely and spend less). This helps in designing better marketing strategies for
each group.

2. Trivariate Model

The Trivariate Model is similar to the Bivariate Model, but it includes three factors
(or variables). This model provides a deeper understanding of customer
behavioural business may analyse customers based on:

 Purchase Frequency
 Average Spending
 Customer Loyalty (how long they have been a customer)

By looking at three dimensions, businesses can identify their most valuable

customers and create personalized offers to retain them. It also helps in segmenting
customers into different groups based on their overall value to the company.

3. SWOT Model

The SWOT Model stands for Strengths, Weaknesses, Opportunities, and

Threats. It is used to analyse a business’s customer base and overall market
position.
  Strengths: What makes the business strong in attracting and retaining
customers? (e.g., high-quality products, strong brand image)
 Weaknesses: What problems does the business face in managing customers?
(e.g., poor customer service, high prices)
 Opportunities: What market trends or customer behaviours can the business
take advantage of? (e.g., demand for online shopping, new customer
segments)
 Threats: What risks can affect customer relationships? (e.g., strong
competitors, economic downturns)

By using the SWOT model, businesses can improve their customer management
strategies by focusing on strengths, fixing weaknesses, grabbing opportunities, and
preparing for threats.

4. PESTE Model

The PESTE Model analyses the external factors that affect customer behaviour and
business performance. It includes:

 Political: Government policies, regulations, and political stability that

influence customer spending and business operations.
 Economic: Economic conditions like inflation, recession, and income levels
that impact customers' purchasing power.
 Social: Cultural trends, lifestyle changes, and consumer preferences that
affect customer choices.
 Technological: The impact of technology on customer interactions, such as e-
commerce, digital payments, and AI-powered customer service.
 Environmental: Sustainability concerns, eco-friendly products, and
environmental regulations that influence customer decisions.

5. Five Forces Model

The Five Forces Model was developed by Michael Porter to analyze market
competition and how it affects customers. It helps businesses understand customer
choices and market pressures. The five forces are:

1. Threat of New Entrants: If new companies enter the market easily,

customers have more choices, and existing businesses must work harder to
keep them.
2. Bargaining Power of Suppliers: If suppliers control prices and product
availability, businesses may struggle to offer competitive pricing to customers.
3. Bargaining Power of Customers: If customers have many alternatives, they
can demand better prices and services. Businesses must offer value to retain
them.
4. Threat of Substitutes: If alternative products or services exist, customers
might switch to competitors. Businesses need to differentiate themselves.
5. Industry Rivalry: Strong competition among businesses can lead to price
wars, better offers, and innovations, all impacting customer choices.
Q.4 what is Marketing Automation?

Marketing automation is the use of software and technology to automate repetitive marketing tasks like
email campaigns, social media posting, customer follow-ups, and ad management. Instead of doing everything
manually, businesses use marketing automation tools to save time, improve efficiency, and create
personalized customer experiences.

Imagine you run an online store. Without automation, you would have to personally send emails to every new
subscriber, remind customers about their abandoned carts, and track their purchase history to offer discounts.
With marketing automation, all of this happens automatically—you set up rules, and the software takes care
of the rest.

Benefits of Marketing Automation

1. Saves Time and Increases Efficiency

One of the biggest advantages of marketing automation is that it eliminates manual work. Instead of manually
sending emails or posting on social media every day, automation tools do it for you. This allows businesses to
focus on strategy, creativity, and customer relationships rather than repetitive tasks.

2. Improves Lead Nurturing and Conversion Rates

Not all customers are ready to buy immediately. Marketing automation helps nurture potential customers by
sending them helpful information at the right time, increasing the chances of conversion.

📩 Example: If someone downloads a free guide on weight loss, they can be automatically sent a series of
emails with fitness tips, diet plans, and eventually an offer for a paid coaching program.

3. Personalizes Customer Interactions

People are more likely to engage with personalized marketing than generic messages. Marketing automation
allows businesses to send targeted messages based on customer behaviour, preferences, and past
interactions.

🎯 Example: An online fashion store can automatically send personalized product recommendations based on
what a customer previously browsed or purchased.

4. Reduces Human Errors

Manual marketing efforts are prone to errors like forgetting to send emails, sending the wrong offers, or
posting at the wrong time. Automation ensures that everything happens on schedule and exactly as planned.

✅ Example: A company running a webinar can set up automated reminders for attendees, ensuring no one
forgets about the event.

5. Helps Businesses Scale Easily

As a business grows, handling thousands of customers manually becomes impossible. Marketing automation
allows companies to handle large audiences effortlessly, whether they have 100 or 100,000 customers.

📈 Example: An e-commerce store can automatically send discounts, abandoned cart reminders, and birthday
offers to customers without needing a large marketing team.

6. Provides Better Data and Insights

Marketing automation tools track customer behaviour, measure campaign performance, and provide reports.
This helps businesses understand what works and what doesn’t so they can improve their marketing
strategies.

7. Improves Customer Retention and Loyalty

Automation doesn’t just help with acquiring new customers—it also helps keep existing customers engaged
through loyalty programs, special offers, and follow-up messages.

Q.6 what is Sales Force Automation (SFA)?

Sales Force Automation (SFA) is a technology that helps businesses automate and
manage their sales process more efficiently. It reduces manual work for sales
teams by handling tasks like tracking customer interactions, managing leads,
scheduling follow-ups, and generating sales reports. This allows salespeople to focus
more on selling rather than on paperwork or repetitive tasks.

For example, instead of manually entering customer details and follow-up reminders,
SFA software automatically records interactions, sets reminders, and updates sales
progress. This helps businesses close deals faster and provide better customer
service.

Key Components of Sales Force Automation

1. Lead and Contact Management

This feature helps businesses store and organize customer details, such as
names, phone numbers, email addresses, and past interactions. When a new
potential customer (lead) shows interest, the software tracks their details and
progress, ensuring they don’t get lost in the process.
2. Opportunity Management
this tracks potential sales opportunities, helping sales teams focus on the most
promising deals. It records key details like deal size, expected closing date,
and the steps needed to win the sale.
3. Sales Forecasting
SFA software analyses past sales data to predict future sales. This helps
businesses plan better, set realistic targets, and allocate resources efficiently.
4. Task and Activity Management
Sales teams have many tasks like follow-ups, meetings, and calls. The software
 schedules and reminds them about these tasks, ensuring they don’t miss
important activities.
5. Automated Workflow and Approvals
Many businesses have approval processes for discounts, contracts, or special
deals. SFA software automates these approvals, reducing delays and making
the sales process smoother.
6. Order and Inventory Management
Some SFA tools also track product availability and process orders. If a
salesperson is closing a deal, they can check stock levels and place orders
directly from the software.
7. Sales Reporting and Analytics
The system generates reports showing sales trends, team performance, and
customer insights. This helps businesses make data-driven decisions and
improve their sales strategies.
8. Mobile Accessibility
Many SFA tools have mobile apps, allowing salespeople to update records,
check customer details, and track progress even when they are on the go.

Q.7 what is Service Automation?

Service automation is the use of technology to automate and improve customer

service processes. It helps businesses provide faster, more efficient, and consistent
customer support by using tools like chatbots, automated emails, self-service portals,
and ticketing systems. Instead of relying only on human agents, businesses use
automation to handle common tasks like answering FAQs, tracking service requests,
and resolving customer issues.

For example, when you contact a company about a product issue, you might first
interact with a chatbot that provides solutions. If the problem needs more help, the
system automatically assigns your request to a support agent. This saves time,
reduces workload, and ensures that customers get the right assistance quickly.

Key Aspects of Service Automation

1. Automated Customer Support (Chatbots & AI Assistants)

Businesses use chatbots and virtual assistants to answer common customer
questions instantly. For example, if you ask about a store’s return policy, a
chatbot can provide the answer without needing a human agent.
2. Ticketing and Case Management
when a customer reports an issue, service automation tools create a ticket (a
record of the problem). The system tracks the issue until it is resolved,
ensuring no request is lost or forgotten.
3. Self-Service Portals
Companies provide FAQs, knowledge bases, and help articles so
customers can find solutions on their own without needing to contact support.
This reduces waiting time and helps customers get answers quickly.
4. Automated Email and SMS Responses
If you send a customer support request, you often get an instant
confirmation email saying, “We received your request and will respond
 soon.” These automated responses assure customers that their concerns are
being addressed.
5. Workflow Automation
Service automation assigns tasks to the right team members automatically.
For example, if a customer has a billing issue, the system sends their request
directly to the billing department instead of a general support agent.
6. Feedback Collection & Surveys
after resolving a customer issue, businesses send automated surveys to gather
feedback. This helps companies improve their services and identify areas that
need improvement.
7. Live Chat and AI Assistance
Some companies offer live chat, where AI first tries to help the customer. If the
AI cannot solve the problem, it automatically connects the customer to a
human agent.
8. Performance Tracking and Analytics
Businesses use service automation tools to track how quickly issues are
resolved and how satisfied customers are. This helps improve customer service
strategies over time.

Q.8 what is a Customer Service Standard?

Customer service standards are the rules and guidelines that a business follows to
ensure customers get the best possible service. These standards define how quickly
customer issues should be resolved, how politely employees should communicate,
and how efficiently services should be delivered. They help businesses maintain
quality, consistency, and customer satisfaction.

For example, a restaurant may have a service standard that says, "Every customer
should be greeted within 30 seconds of entering." A call centres might have a
rule that says, "Customer calls must be answered within three rings." These
standards help businesses provide a smooth and professional experience for their
customers.

Key Aspects of Customer Service Standards

1. Response Time
Customers expect quick responses. Service standards define how fast
businesses should reply to emails, phone calls, and social media messages. For
example, an online store may promise to respond to customer inquiries within
24 hours.
2. Communication Quality
Employees should be polite, clear, and helpful in their interactions. Service
standards may include using positive language, addressing customers by
name, and ensuring that all information given is accurate.
3. Problem Resolution
Standards define how quickly and effectively customer issues should be
solved. For example, a company might aim to resolve 90% of customer
complaints within 48 hours to ensure a high satisfaction rate.
4. Professionalism and Courtesy
Employees should always be respectful and professional. Service standards
may require staff to stay calm, listen carefully, and never argue with
customers, even if the customer is upset.
 5. Availability and Accessibility
Businesses should make it easy for customers to reach them. Service
standards may include having multiple contact options, such as phone, email,
live chat, and social media support.
6. Consistency
Every customer should receive the same high level of service regardless of
who they interact with. Service standards help ensure that all employees follow
the same guidelines, leading to a reliable experience.
7. Customer Feedback and Improvement
Good businesses regularly ask for feedback through surveys and reviews.
Service standards may include responding to feedback, apologizing for
mistakes, and making continuous improvements.
8. Employee Training
Companies must train their staff to follow service standards. This includes
teaching them how to handle difficult customers, answer questions correctly,
and use a friendly tone in every interaction.

Q.9 Software Applications of Marketing Automation/ Service

Automation

Marketing automation software helps businesses automate repetitive marketing

tasks like sending emails, managing social media, tracking customer behaviour, and
running ad campaigns. Instead of doing everything manually, businesses use
software to save time, increase efficiency, and improve customer
engagement.

For example, if someone visits an online store but doesn’t buy anything, the system
can automatically send them an email reminder with a discount to encourage
them to complete the purchase. This happens without a human manually sending the
email every time.

Common Software Applications

1. Email Marketing Automation

o Tools like Mailchimp, HubSpot, and ActiveCampaign send emails
automatically.
o Businesses use them for welcome emails, promotional offers, and
reminders (e.g., “You left items in your cart!”).
o Saves time by scheduling emails and personalizing content for each
customer.
2. Social Media Automation
o Platforms like Hootsuite, Buffer, and Sprout Social schedule and
manage social media posts across Facebook, Instagram, Twitter, and
LinkedIn.
o They track likes, shares, and comments to analyze what content
performs best.
o Helps businesses stay active on social media without manual posting
every day.
3. Ad Campaign Management
o Tools like Google Ads, Facebook Ads Manager, and AdRoll
automate online advertising.
 oAutomatically adjust budgets and target the right audience based on
customer behavior.
o Helps businesses run cost-effective ads without constant manual
adjustments.
4. Website Visitor Tracking & Analytics
o Platforms like Google Analytics, Hotjar, and Marketo track what
users do on a website.
o Businesses can see which pages visitors check, how long they stay, and
what makes them leave.
o Helps improve websites and marketing strategies based on real data.
5. SMS & WhatsApp Marketing Automation
o Tools like Twilio, Sendinblue, and WhatsApp Business API send
automatic messages to customers.
o Used for appointment reminders, order updates, and promotional offers.
o Helps businesses reach customers instantly on their phones.

UNIT-3

Q.1 Customer-Related Database

A customer-related database is a system that stores and organizes customer
information, helping businesses manage interactions and improve services. It
contains details such as customer names, contact information, addresses, and
purchase history. Businesses use these databases to track customer behaviour,
understand preferences, and offer personalized services.

This type of database typically includes multiple tables or sections, each focusing on
different aspects of customer data. One part may store basic customer details like
names, phone numbers, and email addresses, while another section records
purchase history, including transaction dates, product details, and payment methods.
There may also be a section for customer support, which keeps track of complaints,
inquiries, and resolutions, ensuring better service.

Building a customer-related database involves six major steps, ensuring that

businesses can efficiently collect, store, and use customer information.

1. Define Objectives and Requirements

Before creating the database, it’s important to understand its purpose. Businesses
need to decide what kind of customer data they require, such as contact details,
purchase history, or customer preferences. This step ensures the database aligns
with business goals, whether it's improving marketing, enhancing customer service,
or tracking sales.

2. Choose the Right Database System

The next step is selecting the appropriate database system. Small businesses might
use spreadsheets like Excel or Google Sheets, while larger organizations may need
relational databases like MySQL or PostgreSQL. Companies looking for advanced
customer management features often use CRM (Customer Relationship
Management) software like Salesforce or HubSpot.
3. Collect and Input Customer Data
Businesses then gather customer information from various sources, such as online
forms, transaction records, customer feedback, and social media. The data is then
entered into the database, ensuring that each customer has a unique identifier to
avoid duplication. This step also includes validating the accuracy of the data.

4. Organize and Structure the Database

Once the data is collected, it must be properly structured. This involves creating
tables for different types of information, such as customer details, purchases, and
interactions. Establishing relationships between these tables helps businesses
retrieve and analyse data efficiently. For example, linking a customer’s purchase
history to their contact details enables personalized marketing.

5. Secure and Maintain the Database

Customer data is sensitive and must be protected. Security measures such as
encryption, access controls, and regular backups are implemented to prevent
unauthorized access or data loss. Businesses also need to comply with data
protection regulations, such as GDPR or CCPA, to ensure customer privacy.

6. Analyse and Utilize the Data

The final step is using the database to improve customer relationships and business
operations. Businesses can analyse buying trends, segment customers for targeted
marketing, and enhance customer support. Regular updates and cleaning of out-
dated or duplicate data help keep the database efficient and useful.

Q.3 Corporate Customer-Related Data

Customer Relationship Management (CRM) is a strategy and technology that
businesses use to manage and analyze customer interactions and data
throughout the customer lifecycle. It involves the use of technology to organize,
automate, and synchronize sales, marketing customer service, and technical
support.

Corporate customer-related data in CRM typically includes a wide range of

information about individual customers and their interactions with the company.
Here are some common types of data stored in CRM systems:

1. Contact Information: Names, addresses, phone numbers, and email addresses

of individual customers or key contacts within corporate clients.

2. Communication History: Records of interactions such as emails, phone calls,

meetings, and support tickets. This helps in understanding the history of
communication and the relationship with the customer.

3. Sales and Purchase History: Information about past purchases, sales

transactions, and order history. This helps in identifying buying patterns and
preferences.

4. Customer Preferences: Data on customer preferences and behaviors, such as

preferred communication channels, product preferences, and any specific
requests or requirements.
6. Service and Support Records: Details of customer service requests, issues, and
resolutions. This information helps in providing better support and understanding
customer needs.

7. Marketing Interactions: Data on marketing campaigns, responses, and

engagements. This includes information on which campaigns a customer has
interacted with and how they responded.

8. Social Media Interactions: Integration with social media platforms to track and
analyze customer interactions on social media. This helps in understanding
customer sentiment and engagement.

9. Customer Segmentation: Grouping customers based on specific criteria such as

demographics, purchase history, or behavior. This segmentation aids in targeted
marketing and personalized communication.

10. Feedback and Surveys: Records of customer feedback, surveys, and reviews.
This information is valuable for assessing customer satisfaction and identifying
areas for improvement.

11. Contract and Agreement Details: Information about contracts, agreements,

and terms of service. This is crucial for managing ongoing relationships and
ensuring compliance.

12. Integration with Other Systems: Integration with other business systems such
as ERP (Enterprise Resource Planning) for a holistic view of the customer and
seamless business processes.

Q.4 Structured vs. Unstructured Data in CRM

Customer Relationship Management (CRM) systems handle two main types of data:
structured data and unstructured data. Both play a crucial role in understanding
customers and improving business strategies.
1. Structured Data in CRM
Structured data is organized, easily searchable, and stored in fixed formats like
tables and spread sheets. It follows a predefined model and can be analysed using
database tools like SQL.
Examples in CRM:
📌 Customer Information – Name, Email, Phone Number, Address
📌 Purchase History – Order ID, Product Name, Price, Date of Purchase
📌 Marketing Data – Campaign Name, Click-Through Rate (CTR), Email Open Rate
📌 Customer Support Records – Ticket Number, Issue Type, Resolution Status
Where It Is Stored?
Structured data is usually stored in relational databases (MySQL, PostgreSQL,
Microsoft SQL Server) or CRM software like Salesforce, HubSpot, or Zoho CRM.
Benefits:
✅ Easy to search, filter, and analyse
✅ Helps in automation (e.g., sending personalized emails based on purchase history)
✅ Works well with AI-driven analytics
2. Unstructured Data in CRM
Unstructured data is not organized in a fixed format and cannot be stored in
traditional databases. It is often qualitative and requires advanced tools like AI to
analyse.
Examples in CRM:
📌 Customer Emails and Messages – Emails, chat messages, social media
conversations
📌 Call Recordings – Customer service calls that need transcription for analysis
📌 Customer Reviews and Feedback – Text-based feedback from surveys or online
reviews
📌 Social Media Interactions – Comments, likes, and shares on platforms like Facebook
and Twitter
Where It Is Stored?
Unstructured data is stored in cloud storage, data lakes (e.g., AWS S3, Google
Cloud Storage), or CRM-integrated AI tools that help process and categorize it.
Benefits:
✅ Provides deeper customer insights (e.g., sentiment analysis on social media)
✅ Helps understand customer emotions and preferences
✅ Essential for personalized customer service
Why Both Are Important in CRM?
A combination of structured and unstructured data gives businesses a complete
view of customer interactions. While structured data helps in managing customer
details efficiently, unstructured data helps in understanding emotions,
preferences, and brand perception.

Q.5 DATA INTEGRATION

Data integration in CRM is the process of combining customer data from

multiple sources into a single, unified system. It ensures that businesses have a
complete view of their customers by synchronizing information from different
platforms such as emails, social media, sales transactions, and customer support
interactions. By integrating data, companies can eliminate data silos, improve
customer experience, and enhance decision-making.

When businesses use multiple systems to collect customer data—such as an e-

commerce platform, email marketing tools, and support software—information
can become scattered and inconsistent. Data integration connects these systems;
ensuring that all teams within the company, including sales, marketing, and
customer support, have access to the same, up-to-date customer information.
This allows for a seamless experience where, for example, a salesperson can view
a customer’s past purchases, email interactions, and support history in one place.

Integration can be achieved in various ways. Some CRM platforms offer built-in or
native integrations with commonly used tools, while others rely on APIs that
allow systems to exchange data. Middleware solutions act as a bridge between
applications, automating data transfer without manual input. Large enterprises
might use ETL (Extract, Transform, Load) processes to pull data from
multiple sources, standardize it, and load it into the CRM system for analysis.

For instance, an online retailer might integrate its Shopify store with Sales force
CRM to automatically sync customer orders, track purchase history, and provide
personalized recommendations. Similarly, a travel agency could integrate its CRM
with social media monitoring tools to track customer complaints and respond in
real time.

Successful data integration in CRM requires careful planning, including identifying

data sources, ensuring data consistency, and implementing security measures to
protect customer information. When done effectively, it provides businesses with
a 360-degree customer view, helping them deliver more personalized services,
improve customer engagement, and drive business growth.

Q.6 DATA WAREHOUSE

A data warehouse in CRM is a centralized system that stores and organizes

large volumes of customer-related data from multiple sources. It acts as a single
source of truth, helping businesses analyse customer interactions, sales trends,
and marketing performance. Unlike operational databases that handle day-to-day
transactions, a data warehouse is designed for reporting, business intelligence,
and advanced analytics.

In a CRM system, customer data comes from various channels such as websites,
emails, call centers, social media, and purchase records. This data is often
scattered across different platforms, making it difficult to analyse effectively. A
data warehouse collects, processes, and structures this information in a way that
allows businesses to generate insights and make informed decisions.

For example, an e-commerce company might integrate its CRM with a data
warehouse to analyze customer purchasing behaviour over time. By aggregating
sales transactions, customer feedback, and website activity, the company can
identify patterns, such as which products are most popular among certain
customer segments or when customers are most likely to make a purchase.
These insights help in creating personalized marketing campaigns and improving
customer service.

A data warehouse uses processes like ETL (Extract, Transform, Load) to pull
data from various sources, clean and organize it, and then store it in a structured
format for easy retrieval. This ensures that data is consistent and accessible for
reporting tools and dashboards. Businesses use data warehouses with analytics
platforms like Power BI, Tableau, or SQL-based queries to generate detailed
reports and forecasts.

By integrating a data warehouse with CRM, companies gain a 360-degree view

of customer interactions, allowing them to predict customer needs, improve
engagement strategies, and optimize business performance. It enhances the
ability to track customer journeys, measure marketing ROI, and make data-driven
decisions that lead to long-term customer satisfaction and business growth.

Q.7ANALYTICS FOR CRM

CRM Analytics refers to the process of analysing customer-related data to gain insights that help businesses
improve customer relationships, sales, and marketing strategies. It allows companies to understand customer
behaviour, predict future trends, and personalize their interactions with customers. By using CRM Analytics,
businesses can make better decisions, improve customer satisfaction, and increase revenue.

Key Points of CRM Analytics

1. Understanding Customer Behaviour

One of the most important aspects of CRM Analytics is analysing customer behaviour.
Businesses collect data from various sources such as website visits, social media
interactions, emails, and past purchases. By studying this data, companies can
understand what customers like, how they make purchasing decisions, and what factors
influence their loyalty. This helps businesses offer products and services that match
customer needs.

2. Improving Customer Experience

CRM Analytics helps in improving customer experience by providing personalized

interactions. Businesses can track customer preferences and past interactions to offer
better recommendations and tailored services.

3. Boosting Sales and Conversions

With the help of CRM Analytics, sales teams can identify high-value customers and focus
on the most promising leads. By analysing purchase history, engagement levels, and
communication records, businesses can predict which customers are most likely to buy.
This allows sales teams to approach potential buyers at the right time with the right
offers, increasing sales and conversion rates.

4. Enhancing Marketing Strategies

CRM Analytics plays a key role in marketing by tracking the performance of campaigns
and customer responses. Businesses can analyse which marketing strategies work best
and make data-driven decisions to improve their advertising efforts. By segmenting
customers based on demographics, interests, and behaviour, companies can create
targeted campaigns that reach the right audience, improving marketing efficiency.

5. Predicting Customer Needs and Trends

Predictive analytics, a key feature of CRM Analytics, helps businesses forecast future
customer behaviour. By analysing past data, businesses can predict what products or
services customers will need in the future. For example, a telecom company can use
CRM Analytics to identify customers who are likely to switch to another provider and
offer them special discounts to retain them.

6. Increasing Customer Retention

Retaining customers is more cost-effective than acquiring new ones. CRM Analytics helps
businesses identify customers who are at risk of leaving by analysing their engagement
levels, complaints, and purchase patterns. Companies can then take proactive steps,
such as offering discounts or personalized support, to keep these customers engaged
and loyal.

7. Automating CRM Processes

With the integration of Artificial Intelligence (AI) and automation, CRM Analytics can help
businesses automate routine tasks like data entry, follow-up emails, and customer
support responses. AI-powered chatbots can handle customer queries instantly, reducing
response time and improving efficiency. Automation not only saves time but also ensures
consistent and accurate customer interactions.

8. Real-Time Data Analysis for Better Decisions

CRM Analytics allows businesses to analyse customer data in real time. This means they
can track on-going sales, monitor customer complaints, and adjust marketing strategies
instantly. Real-time insights help businesses make quick and informed decisions,
improving their responsiveness and competitiveness.

Q.8 Big Data Analytics

Big Data Analytics is the process of examining large and complex data sets to
find useful information, patterns, and trends. Businesses use it to make better
decisions, improve efficiency, and understand customer behaviour.

Key Points of Big Data Analytics

1. Huge Volume of Data

o Big Data includes massive amounts of information collected from
websites, social media, sensors, transactions, and more.
o Traditional methods cannot handle such large data sets, so special
tools are needed.
2. Variety of Data Sources
o Data comes from multiple sources, including text, images, videos,
and real-time sensors.
o It includes both structured data (like databases) and unstructured
data (like emails, social media posts).
3. High Speed of Data Processing
o Big Data is generated at a fast pace, such as real-time online
transactions or live GPS tracking. Analytics tools must process
data quickly to provide instant insights.
4. Finding Hidden Patterns and Trends
o Big Data Analytics helps businesses discover valuable insights that
might not be visible in smaller data sets. For example, it can
detect customer buying habits, market trends, and potential risks.
5. Improved Decision-Making
o Companies use Big Data Analytics to make smarter, data-driven
decisions.
 o It helps in predicting sales, understanding customer preferences, and
detecting fraud.
6. Used in Multiple Industries
o Healthcare: Detecting disease patterns and improving treatments.
o Retail: Understanding customer behaviour and personalizing offers.
o Finance: Fraud detection and risk assessment.
o Manufacturing: Predicting equipment failures to reduce downtime.

Techniques Used in Big Data Analytics

1. Data Mining
o Extracting useful information from large data sets to find patterns
and relationships.
o Example: Online stores analyze purchase history to suggest products
customers might like.
2. Machine Learning
o AI-powered algorithms that learn from data and improve over
time without manual programming.
o Example: Netflix recommends movies based on your viewing habits.
3. Natural Language Processing (NLP)
o Understanding human language from text, voice, and chat
messages.
o Example: AI-powered chatbots that respond to customer questions.
4. Predictive Analytics
o Using past data to predict future trends and outcomes.
o Example: Banks predict loan default risks based on customer financial
history.
5. Real-Time Analytics
o Processing and analyzing data as it is generated.
o Example: Monitoring stock prices and adjusting investments instantly.
6. Cloud Computing for Big Data
o Storing and analyzing data on remote servers instead of local
systems.
o Example: Google and Amazon process huge amounts of customer
data on cloud platforms.

Q.9 Analytics of Structured Data

Structured data is organized, well-formatted data that is stored in databases,

spreadsheets, or tables. It includes things like customer names, sales figures, and
product details. Analytics of structured data helps businesses make sense of
this information by finding patterns, trends, and useful insights. Here are the key
aspects explained in simple terms:

1. Organized and Well-Structured Data

Structured data is stored in a fixed format, such as rows and columns in a table.
It is easy to access and analyse because it follows a clear structure. Examples
include customer records, sales transactions, and employee databases.
2. Data Storage and Management

Businesses store structured data in databases like MySQL, SQL Server, and
Excel spreadsheets. This data can be easily managed using structured query
language (SQL), which helps in searching and filtering information.

3. Processing and Analysing Data

Structured data is analysed using different tools and techniques to find trends,
detect patterns, and generate reports. For example, businesses can analyse
past sales data to predict future sales or understand customer preferences.

4. Predicting Future Trends (Predictive Analytics)

By looking at past data, structured data analytics helps businesses forecast

future trends. For example, a company can predict which products will sell
more in the next season based on past sales records.

5. Visualizing Data for Easy Understanding

Analytics tools convert structured data into charts, graphs, and dashboards,
making it easier to understand. Instead of looking at numbers in a spread sheet,
managers can view sales performance in a colourful chart.

6. Making Real-Time Decisions

Structured data analytics helps businesses monitor real-time information

such as website traffic, live sales, or stock levels. This allows companies to make
quick decisions, like restocking a fast-selling product.

Q.10What is Data Mining?

Data mining in CRM is the process of analysing large sets of customer data to discover patterns, trends, and
insights that help businesses make better decisions and improve customer relationships.

1. Data Collection: Gather relevant data from various sources, such as databases, spread
sheets, text files, and external APIs. Ensure that the data collected is comprehensive and
representative of the problem or question you're trying to address.

2. Data Cleaning: Handle missing values, outliers, and errors in the dataset. And also
Remove duplicates and irrelevant information with Standardize or normalize data to
ensure consistency and comparability.

3. Exploratory Data Analysis (EDA): Conduct preliminary analysis to understand the

structure and characteristics of the data. Use summary statistics, visualizations, and
correlation analyses to identify patterns and trends.

4. Data Transformation: Convert data into a suitable format for analysis. Perform
transformations such as normalization, scaling, or encoding categorical variables.
5. Feature Selection: Identify and select relevant features (attributes) for analysis.
Eliminate redundant or irrelevant features to improve model performance and
interpretability.

6. Data Splitting: Divide the dataset into training and testing sets to assess model
performance.

7. Model Selection: Choose appropriate data-mining models or algorithms based on the

nature of the problem (e.g., classification, regression, clustering). Consider factors like
interpretability, accuracy, and scalability when selecting models.

8. Model Training: Train the selected model using the training dataset. Adjust model
parameters to optimize performance. Validate the model using the validation set to avoid
over fitting

9. Model Evaluation: Assess the model's performance using the testing dataset. Use
metrics such as accuracy, precision, recall, F1 score, or ROC curves, depending on the
nature of the problem.

10. Model Deployment: Ensure that the deployment process is scalable, efficient, and
aligned with business Needs.

12. Monitoring and Maintenance: Continuously monitor the performance of deployed

models in real-world scenarios. Update models as needed to account for changes in data
patterns or business requirements.

13. Documentation: Document the entire data-mining process, including data sources,
cleaning procedures, feature selection, model choices, and results.

Q.12 Role of Artificial Intelligence (AI), Machine Learning, and Deep Learning in
CRM Analytics

Artificial Intelligence (AI), along with its subsets Machine Learning (ML) and
Deep Learning (DL), plays a crucial role in enhancing Customer Relationship
Management (CRM) analytics. These technologies allow businesses to process
large volumes of customer data, predict behaviour, automate tasks, and improve
decision-making. AI-driven CRM analytics enable businesses to create
personalized customer experiences, optimize marketing strategies, and enhance
operational efficiency.

1. Understanding Customer Data and Finding Pattern and Behaviour

AI processes large amounts of customer data collected from emails, calls, social
media, and website visits. Machine learning processes this data and identifies hidden
patterns that help businesses understand customer preferences, needs, and
problems. By analysing this data, companies can improve their products, services,
and marketing strategies to match customer expectations. Deep Learning processes
this data in a way that helps businesses understand customer preferences, emotions,
and behaviours more accurately.

2. Predicting Customer Behaviour and Future Actions

Using Artificial Intelligence ,Machine learning, and Deep Learning models can predict
what customers are likely to do next base on their past interactions or Behaviour. For
example, if a customer has been looking at a certain product multiple times but
hasn’t bought it yet, ML can suggest sending them a discount or a reminder. This
helps improve customer satisfaction and loyalty.

3. Automating Repetitive CRM Tasks

Using AI and ML reduces the workload of employees by handling repetitive tasks

such as data entry, sorting emails, and responding to basic customer
inquiries. This saves time and allows human employees to focus on more important
tasks like solving complex customer problems and improving sales. Deep Learning
powers intelligent virtual assistants and chatbots that provide real-time, human-
like responses to customer queries.

4. Sentiment Analysis and Emotional Intelligence

AI and Deep Learning enhance CRM analytics by analysing customer sentiment in

emails, reviews, and social media. Sentiment analysis tools assess whether customer
feedback is positive, negative, or neutral, allowing businesses to respond proactively.
Machine Learning improves emotional intelligence in CRM by identifying patterns in
customer complaints and satisfaction trends.

5. Personalizing Customer Experiences

AI and ML enable businesses to offer personalized recommendations and

services based on customer behaviour. It analyses browsing history, past purchases,
and interactions to suggest relevant products, discounts, or content. This makes
customers feel valued and increases the chances of repeat business.

Deep Learning makes CRM systems more advanced in offering personalized

experiences. By analysing customer behaviour, purchase history, and browsing
habits, it suggests products, services, and promotions tailored to each individual.
This level of personalization increases customer satisfaction and encourages repeat
business.

6. Enhancing Sales with Better Lead Scoring

AI,ML and Deep learning helps businesses identify and prioritize high-value
leads by analysing customer engagement levels and behaviour. It assigns lead
scores, allowing sales teams to focus on the most promising prospects rather than
wasting time on those unlikely to convert. AI also helps forecast sales trends,
improving decision-making.

7. Fraud Detection and Risk Assessment

AI and Deep Learning improve CRM security by detecting fraudulent activities and
identifying potential risks. ML models analyse customer transactions and interactions
to flag suspicious behaviour. Deep Learning enhances this by identifying complex
fraud patterns that traditional methods might miss, ensuring greater data security
and fraud prevention.
8. Continuous Learning and Adaptation

Unlike traditional CRM systems, AI-powered CRM solutions continuously evolve.

Machine Learning and Deep Learning algorithms adapt to new customer behaviours
and market trends, ensuring that businesses stay ahead of changes in customer
expectations and industry dynamics.

Q.13 CRM Implementation

Customer Relationship Management (CRM) implementation is a structured process that
helps businesses improve customer interactions, streamline operations, and boost sales
and marketing efforts. The implementation process consists of five major phases:
Planning & Strategy, CRM Selection & Customization, Data Migration &
Integration, Training & User Adoption, and Deployment & Optimization. Each
phase plays a critical role in ensuring that the CRM system is successfully adopted and
utilized.

1. Planning & Strategy Phase

The first step in CRM implementation is planning, where businesses define their
objectives, requirements, and the overall strategy. This phase involves
understanding why the CRM is needed and how it will help achieve business
goals. Organizations need to identify challenges in their current processes, such
as inefficient sales tracking, poor customer service, or lack of customer insights.

Once the business needs are clear, specific goals should be set. These may
include increasing sales, improving customer satisfaction, or streamlining
communication across departments. A CRM implementation team is formed,
consisting of key stakeholders from sales, marketing, IT, and customer service.
This team is responsible for overseeing the project, ensuring smooth
implementation, and addressing any concerns.

2. CRM Selection & Customization Phase

Once the planning is complete, the next step is selecting the right CRM software.
Businesses need to choose a CRM that fits their industry, budget, and scalability
requirements. After selecting the software, the system is customized to match
the organization’s workflow. Customization includes setting up dashboards, user
roles, automation features, and reporting tools. The right selection and
customization allow businesses to optimize their CRM for better efficiency and
productivity.

3. Data Migration & Integration Phase

One of the most important phases in CRM implementation is data migration,

where existing customer data is transferred from old systems to the new CRM.
Before moving data, businesses must clean and organize their existing records.
This involves removing duplicate entries, correcting errors, and standardizing
data formats.
After data is cleaned, it must be mapped correctly to ensure all customer details,
purchase history, and interactions are transferred to the right fields in the new
CRM. A small-scale test migration is usually conducted first to verify the accuracy
of data transfer. Once the test is successful, full data migration is carried out. This
ensures that all important customer information is available in the new CRM.

4. Training & User Adoption Phase

A CRM system is only effective if employees use it efficiently. Therefore, training

is an essential part of the implementation process. Employees from different
departments need to be trained on how to navigate the CRM, input data
correctly, and use its features to improve their workflows.

Training sessions can be conducted in various formats, including in-person

workshops, online tutorials, and user guides. Employees should understand how
the CRM will benefit them in their daily tasks, making their work easier and more
productive. Businesses should also collect feedback from employees to identify
any difficulties they encounter.

5. Deployment & Optimization Phase

Before fully launching the CRM, it must be tested to ensure it functions correctly.
Testing involves checking for system errors, performance issues, and integration
problems. Businesses usually conduct a pilot phase where a small group of
employees uses the CRM to identify any issues.

During this pilot phase, any bugs or inefficiencies are resolved before the full-
scale rollout. Once the system is fully tested and optimized, the CRM is officially
launched across the organization.

CRM implementation does not end with the launch. To maximize its benefits,
businesses must continuously monitor the system’s performance and make
improvements. User feedback should be collected periodically to identify any
areas that need improvement.