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CUSTOMER RELATIONSHIP MANAGEMENT

MGT: 631
ASSIGNMENT
ON
TOUCH POINTS USED BY TOSHIBA
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SUMMITED TO:- SUMMITED BY:-

Mr. ROHAN SHARMA Kritika Kumar

Roll No- 20

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CUSTOMER RELATIONSHIP MANAGEMENTc

Introduction

Customer relationship management (CRM) is a widely-implemented strategy for managing a

company¶s interactions with customers, clients and sales prospects. It involves using technology
to organize, automate, and synchronize business processes²principally sales activities, but also
those for marketing, customer service, and technical support. The overall goals are to find,
attract, and win new clients, nurture and retain those the company already has, entice former
clients back into the fold, and reduce the costs of marketing and client service. Customer
relationship management describes a company-wide business strategy including customer-
interface departments as well as other departments.

Customer relationship management could be better defined as being a methodology, an approach that a
company will use to achieve their goals. It should be directly connected to the philosophy of the
company. It must guide all of its policies, and it must be an important part of customer service and
marketing. If this is not done, the CRM system will become a failure. There are a number of things the
ideal CRM system should have. It should allow the company to find the factors that interest their
customers the most. A company must realize that it is impossible for them to succeed if they do not cater
to the desires and needs of their customers. Customer relationship management is a powerful system that
will allow them to do this. Some of the methods connected with CRM are automated, and the purpose of
this is to create marketing strategies which are targeted towards specific customers. The strategies used
will be dependent on the information that is contained within the system. Customer relationship
management is commonly used by corporations, and they will focus on maintaining a strong relationship
with their clients. There are a number of reasons why CRM has become so important in the last 10 years.
The competition in the global market has become highly competitive, and it has become easier for
customers to switch companies if they are not happy with the service they receive. One of the primary
goals of CRM is to maintain clients. When it is used effectively, a company will be able to build a
relationship with their customers that can last a lifetime. Customer relationship management tools will
generally come in the form of software. Each software program may vary in the way it approaches CRM.

CRM has become a strategic initiative in most companies due to:

xc rowth of service sector industry

xc Affordable advance of digital technology. The cost of data storage and processing has
been declining.
xc Shift among companies from market share to share of wallet .i.e. selling multiple
products and services through cross selling and bundling of packaged offerings.
 Definition

Customer Relationship Management (CRM) is an information industry term for methodologies,

software, and usually Internet capabilities that help an enterprise manage customer relationships
in an organized and efficient manner. In many cases, an enterprise builds a database about its
customers. This database describes relationships in sufficient detail so that management,
salespeople, and customer service reps can access information; match customer needs with
product plans and offerings; remind customers of service requirements; know what other
products a customer had purchased; etc

CRM has to two typical implementation methods: on-premise and on-demand/hosted. Each
method has its advantages and disadvantages as described below.
On-premise CRM is appropriate for:
c Companies seeking to implement highly customized customer-management practices
c Companies that need specialized data structures
c Companies with complex or real-time integration requirements
c Companies with available in-house IT resources and support systems
c Companies who can afford the up-front capital investment and fixed costs
c Companies who deal with sensitive data that don't want other parties to see
On-demand/hosted CRM is appropriate for:
c Customers seeking to implement standard processes from a variety of industries and companies
c Companies that are able to use standard data structures
c Companies with more basic integration requirements
c Companies with limited technical resources and support personnel
c Companies seeking variable pricing and lower up-front costs
c Companies dealing with non-proprietary data
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 CRM from customer life cycle perspective

The Customer Life Cycle (CLC) has obvious similarities with the Product Life Cycle (PLC).
However, CLC focuses upon the creation of and delivery of lifetime value to the customer i.e.
looks at the products or services that customers NEED throughout their lives. It is marketing
orientated rather than product orientated, and embodies the marketing concept. Essentially, CLC
is a summary of the key stages in a customer's relationship with an organization. The problem
here is that every organization¶s product offering is different, which makes it impossible to draw
out a single Life Cycle that is the same for every organization.

CONSIDER

PURCHASE

SET UP

USE

Example:
c Volkswagen Cars retains a customer for many years and one can predict the products that meet a
customer¶s needs throughout his or her family lifetime. However the purchase of each car, will in
itself be a CLC with many Customer Touch Points. The consumer may need a bigger vehicle as
his or her family expands - so they visit VW's website and register.

The customer reviews models and books a test-drive with her or his local dealer. He or she
decides to buy the car and arranges finance. The car is then delivered from the factory, and
returns every year for its annual service. Then after three years, the customer decides to trade in
his or her car, and the cycle begins again. The longer-term life cycle is simply the shorter-term
life cycles viewed consecutively.

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Phases
The three phases in which CRM support the relationship between a business and its customers
are to:

·c Acquire: CRM can help a business acquire new customers through contact management,
selling, and fulfillment.
·c Enhance: web-enabled CRM combined with customer service tools offers customers service
from a team of sales and service specialists, which offers customers the convenience of one-
stop shopping.
·c Retain: CRM software and databases enable a business to identify and reward its loyal
customers and further develop its targeted marketing and relationship marketing initiatives.

Benefits of CRM
The use of a CRM system will confer several advantages to a company:

·c Îuality and efficiency

·c Decreased costs
·c Decision support
·c Enterprise agility
TYPES OF CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
xc Operation CRM: Also known as ³FRONT OFFICE CRM´ which involves the areas
where direct customer contact occurs. These interactions are referred to as ³CUSTOMER
TOUCH POINTS´.
xc Collaborative CRM: Variety of channels is introduced to facilitate and improve the
quality of customer interactions. It requires managing various partners of the company;
business partner, agents, brokers, intermediaries like distributors, dealers and retailers etc.
xc Analytical CRM: Also known as back office or strategic CRM and involves
understanding customer activities occurred in front office. It studies consumer behavior
patterns helpful to position the product for cross selling to meet customer expectation.
 INTRODUCTION OF TOUCH POINT

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Touch point is a point (what/who) that is touched via any channel (when/where/how) for a
purpose (why). That said, it is every point of interaction, internal and external, seen and
unseen.

A touch point is defined as, all of the communication, human and physical interactions your
customers experience during their relationship lifecycle with your organization. Whether an ad,
Web site, sales person, store or office, Touch points are important because customers form
perceptions of your organization and brand based on their cumulative experiences.

Touch point (also touch point, contact point, customer contact, point of contact, brand touch
point, and customer touch point) is the interface of a product, a service or a brand
with customers, non-customers, employees and other stakeholders ± before, during and after a
transaction respectively a purchase. This applies for business-to-business- as well as business-to-
consumer-markets.
MEANING:

A touch point is an interaction with a potential customer. It includes literal interactions with
customers, such as speaking to them when they make a phone reservation or greeting them when
they walk through the restaurant door. Touch points also include high tech interactions, such as
automated reservation systems and web sites. Public relations and advertising such as print ads,
flyers, t-shirts with logos, coupons and billboards are important touch points as well.

Today, there is a fast-growing movement among organizations interested in improving their

customer-centricity through a better understanding of customer interactions, or touch points.
Called "Customer Touch point Management" (CTM), the goal of this new movement is to
improve customer experiences, and as a result, improve customer relationships. By improving
customer relationships, organizations improve market share, sales, and both customer and
employee loyalty and advocacy.

Touch point Metrics (2003) defines touch point as ³every point of contact²online and off;
each communication, human resource, branding, marketing and sales process initiative creates
touch points. The quality of touch point experiences drives perceptions, actions and
relationships.´

Touch point Experience (2004) relates touch point to time and sees touch point as ³every point
in time the customer µtouches¶ or connects with your company throughout the entire
product/service delivery; pre-, during and post-purchase.´
TOSHIBA
Introduction

Toshiba India Private Limited is a 100% subsidiary of Toshiba Corporation Japan. Toshiba
Corporation, our parent company, is a world-class innovator and industry leader in three key
domains: Digital Products (visual image products, including digital and flat panel TVs, DVD
recorders & players, portable PCs, digital audio players, hard disk drives, mobile phones and
multi-function peripherals); Electronics Devices (including leading-edge semiconductors,
displays and materials); and Social Infrastructure (power generation equipment, medical systems,
elevators and escalators, transportation equipment, social automation equipment and
telecommunications systems).

The business operations of Toshiba India Private Limited in India encompass the following
business domains:
‡ PC Business (notebook computers)
‡ LCD TVs Business
‡ Home Appliances Business (refrigerators, washing machine etc.)
‡ Thermal & Hydro Power Plant Systems Engineering Business
‡ Semiconductor Business
‡ Multi-Functional Peripherals / Devices (copy/print/fax/scan etc.) Business
‡ Transmission Distribution & Industrial Systems (including railway systems / equipment)
Business.

Corporate Data

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Established: 1875 by Hisashige Tanaka

President and CEO: Nairo Sasak

Employees: 204,000

Shareholders: 473,230
Products and services

xc Laptop Computers

xc Audio- Visual Products

xc Home appliances

xc Office automation

xc Semi-conductors

xc Air-conditioner
History
Toshiba's early history has two strands: 1875 saw the establishment of Tanaka Seizo-sho
(Tanaka Engineering Works), Japan's first manufacturer of telegraphic equipment. Its founder,
Hisashige Tanaka (1799 - 1881), was well known from his youth for inventions that included
mechanical dolls and a perpetual clock. Under the name Shibaura Seisaku-sho (Shibaura
Engineering Works), his company became one of Japan's largest manufacturers of heavy
electrical apparatus. In 1890, Hakunetsu-sha & Co., Ltd. was established as Japan's first plant for
electric incandescent lamps. Subsequent diversification saw the company evolve as a
manufacturer of consumer products. In 1899, the company was renamed Tokyo Denki (Tokyo
Electric Co.).

In 1939, these two companies, leaders in their respective fields, merged to form an integrated
electric equipment manufacturer, Tokyo Shibaura Denki (Tokyo Shibaura Electric Co., Ltd.).
The company was soon well known as 'Toshiba,' which became its official name in 1978.
The Toshiba Commitment

Basic Commitment of the Toshiba Group

We, the Toshiba roup companies, based on our total commitment to people and to the future,
are determined to help create a higher quality of life for all people, and to do our part to help
ensure that progress continues within the world community.
Commitment to People
We endeavor to serve the needs of all people, especially our customers, shareholders, and
employees, by implementing forward-looking corporate strategies while carrying out responsible
and responsive business activities. As good corporate citizens, we actively contribute to further
the goals of society.
Commitment to the Future
By continually developing innovative technologies centering on the fields of Electronics and
Energy, we strive to create products and services that enhance human life, and which lead to a
thriving, healthy society. We constantly seek new approaches that help realize the goals of the
world community, including ways to improve the global environment.

Committed to People, Committed to the Future. TOSHIBA

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Touch points
followed by
Toshiba
 xc The Internet

Harnessing the Internet to effectively conduct follow up. They use it for quick communication,
because of its immediate nature. Their personal emails are connected and provide them with
opportunity to communicate with their customers in return. Toshiba follows ³eZine´ which
allows them to include their clients and contacts in the content of the newsletter. In this way,
they are consciously farming their relationship by giving its customers visibility in its scope of
business. CEO ± ³Hideo Ito says- they are conscientious while using Instant Messenger or other
types of instant "chat" features, because many of their contacts are busy when they are online and
won't always welcome a note every time you see they are online´.

xc Conferences and special eventsc

As we all know that events advertised are of mutual interest, they invite individuals or their
customers to attend as their guest; this provides another opportunity to continue growing their
relationships. During event, they build in some one-to-one time with their guests to find out
specifically how they can help their company to achieve goals they have set for sales,
production, and referrals.

xc Seasonal or special occasion gifts

They often send gifts basket to their largest clients as a way to thank them for their business.
They consider sending something to those with whom you have been networking over the past
year or to those whom you desire to refer them more. It is a small gesture, but an effective
communication tool, as well.
 xc The power of the proximity effectc

As studies have shown that relationships are not based on similar interest but on proximity. Same
in the case of business people who tends to look for outside connections, thinking that the people
whom they are around the most aren't the ones who are going to be referring them the most.
Proximity is the key to cultivating deeper relationships with people who will continually provide
with business referrals. That is what Toshiba follows: Take a closer look at these people,
regardless of whether they appear on the outside to be a valid source of referrals, and build
friendships with them that goes beyond the normal "Hey, how are you?"

xc 0orkflow management

Workflow management describes the processes and cross-functional handoffs that occur in
response to a specific customer request within an organization.

Two years ago much of the systems integration and IT professional services firm's workflow
management consisted of swelling manila folders, opened in response to work requests, and
passed through ordering, vendor management, invoicing, billing, etc. Toshiba employees would
print a customer's email request, slide it into the folder, look up the closest qualified contractor,
and fax that contractor a work order, which the contractor would sign and return. Subsequent
communications also were stuffed into the folder, which was then handed off to a manager who
oversaw contractor relationships and addressed issues that arose during the work.
Once the work was completed employees, responsible for collecting vendor invoices, would take
possession of the manila folder. When all of the vendor invoices were submitted, an order would
be entered into the accounting system and the documents in the manila folder would be scanned
and stored on a general server.

CEO ± ³Hideo Ito says -Thanks to Microsoft CRM and Outlook, Bailiwick Data Systems'
internal workflow is now highly automated, quicker, and more accurate. An emailed work
request enters a service module as a case and automatically alerts a vendor manager that a
specific type of vendor in a specific location is needed. The manager selects a vendor from the
database--a custom application integrates Microsoft MapPoint's location functionality with the
CRM system--and then clicks a "task complete" box, which alerts the person in charge of
managing cases on a daily basis.´

xc Customer segmentation

CEO ± ³Hideo Ito, there is a difference between meeting customers' needs and meeting one
customer's needs--especially online. When it comes to tailoring sales and marketing efforts to the
individual needs of online customers, Ito believes many CRM tools fall short, because
"everything on an analytical level is essentially performed on an aggregate basis, as far as Web
sites are concerned´.
 xc 0ebsite: http://www.csd.toshiba.com/cgi-bin/tais/support/jsp/home.jsp

Toshiba through its website as mentioned above, means of touch point get into contact with their
customers and provide them with different services:

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Moreover they provide them with other various facilities, like:

>c Forums
>c Notebook repair status
>c To find Accessories
>c Product Updates
>c Registration of product

Support.Toshiba.com
 Techniques and method being followed by Toshiba to follow touch points

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Stage 1: Setting an Objective for the Strategy

Stage 2: Setting a Budget for the Communication Task:

Calculating the budget necessary for the scale of the task based on the weight of advertising
required. TOSHIBA use the Hub Survey to establish the relative weight of advertising required
to construct an effective media plan to deliver it.

Stage 3: Establishing and Understanding a Target Audience:

Using the Hub Survey to:

xc ain market knowledge, e.g. size, category, brands, usage, regionality

xc ain competitive information, e.g. users, frequency, regionality, when used, association with
events
xc Explore potential target audience definitions e.g.
Demographics (socio, geo etc)
Lifestyle
Attitudes, values & motivations
User types
Behavior
Segmentation
Attitude to advertising
Receptivity
Message, moment
Receiver or creator
Platforms/ events
Life events (getting married, buying a house)
Activities and leisure
eography
Role in household
Mood

Brand relationships:
xc Brand loyalty, purchase, spend, usage
xc Fusion with Client data
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Channel relationships:
xc Channel use and preference
xc reasons for using
xc favorites¶
xc for data on DM, online, mobile, social networking
xc Attitude to channel
xc Multimedia use
What, where, when, how long for
xc Who with
xc Location
Stage 4: Finding a Guiding Idea to Form the Heart of the Strategy:
Using the Hub Survey to:
xc Support or substantiate ideas and hypotheses
xc Evaluate relative content
xc Establish key platforms
xc Review prospective partners
Stage 5: Choosing 0hich Channels to Use:
Using the Hub survey and the IPD to:
xc Define each channels¶ role
xc Explore advertising receptivity/ response
xc Evaluate cross/ multimedia use
Stage 6: How to Integrate the Chosen Channels to Achieve the µMultiplier Effect¶:
Investigate simultaneous (or not) media use
Evaluate each channels¶ contribution to the mix
Explore partnerships - media/ brand
Evaluate the potential roles of DM, mobile, online on the same platform
Investigate cross-platform potential

Stage 7: Implementing and Measuring the Effect of the Communication Strategy in Total
and by Individual Component:
Using the IPD to evaluate:
xc Individual and combined coverage & frequency
xc Effective campaign thresholds
xc Scenario planning
xc Campaign targets
xc Evaluate multi media combinations
xc Intra media choices
xc Competitive interrogation
xc Unique reach
xc Frequency distribution
xc Platform performance
xc Buying audience to planning audience
RECOMMENDATIONS
Other techniques which could be used by Toshiba are:

xc Grab their attention

1.c They can fight for their attention with a powerful headline that brings up emotion!
Depending on their product or service, and their target market, their headlines should
promise their customers one of two things: Promise to take them away from their
problem or promise to bring them towards pleasure.
2.c They can think about their target market, what's their state of mind? Are they more likely
to take action to gain pleasure? Or to make the pain they're in go away?

xc To shake their confidence in what they are doing NO0

After grabbing their attention. They will continue to pay attention to messages because they need
to wonder:

1.c Are they getting the best possible service or product for their money?
2.c Are they doing enough?
3.c Are they doing the best they can?

xc Building customer¶s confidence in them

Thirdly, after shaking their confidence in what they are doing, it is important to build their
confidence in them. They then need to prove, the solution to their problem.
o How you differ from the competition?
o What are your credentials?
o Do you have documented test results?
o Do you have a very high percentage of satisfied customers?
o Do you have professional recognition from peers within your field?
 xc 0ow customer with their services
1.c 24 hour hotline - to answer common questions
2.c Make house calls.
3.c Offer one on one service, convenient hours or pickup & delivery

xc Address and overcome their objections

Most often the biggest objection is the price. Toshiba with its high quality products like-laptop
computer, audio-visuals etc. can confront them head-on by explaining why it's worth paying their
price.

xc Can remove the obstacle of risk with their Guaranteec

Most people associate the strength and the length of the guarantee with the quality of the
product. It can make or break the sale, the longer they¶ll guarantee the better is the chance of
making a sale.

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 CONCLUSION

Customer relationship management (CRM) is a widely-implemented strategy for managing a

company¶s interactions with customers, clients and sales prospects. It involves using technology
to organize, automate, and synchronize business processes²principally sales activities, but also
those for marketing, customer service, and technical support.

A touch point is defined as, all of the communication, human and physical interactions your
customers experience during their relationship lifecycle with your organization. Whether an ad,
Web site, sales person, store or office, Touch points are important because customers form
perceptions of your organization and brand based on their cumulative experiences.

Toshiba India Private Limited is a 100% subsidiary of Toshiba Corporation Japan. Toshiba
Corporation, our parent company, is a world-class innovator and industry leader in three key
domains: Digital Products (visual image products, including digital and flat panel TVs, DVD
recorders & players, portable PCs, digital audio players, hard disk drives, mobile phones and
multi-function peripherals).

TOUCH POINTS USED ARE: The Internet

Seasonal or special occasion gifts

Work flow management etc.

 REFRENCES
xc http://www.destinationcrm.com/Articles/Editorial/Magazine-Features/The-6-Most-
Overlooked-Customer-Touch-Points-43348.aspx
xc http://www.ipa.co.uk/Content/TouchPoints-Site-Examples-of-TouchPoints-in-action
xc http://onesgadget.com/search/touchpoints-used-by-toshiba/
xc http://incentmedia.wordpress.com/2009/10/11/what-are-the-customer-touch-points-in-
mobile-marketing/
xc http://en.wikipedia.org/wiki/Touchpoint
xc http://www.csd.toshiba.com/cgi-bin/tais/support/jsp/home.jsp