Indian Institute of Management Bangalore
Customer Relationship Management
Faculty: Prof. G. Shainesh
Term VI
PGP (2009-10)
3 Credit Course
Background – The primary purpose of any business is to win and keep customers. Its
competitors also seek to do the same. Most successful firms have developed capabilities
for attracting customers through their marketing programs. But they have shown mixed
results when it comes to retaining these customers. Customer Relationship Management
helps businesses in successfully implementing strategies aimed at winning and retaining
customers profitably. It is also helping businesses shift from a short-term transaction based
mode of operation in their interactions with customers to a long-term relationship mode.
Objectives – The objective of this course is to help students understand the concept and
practice of CRM derived from research and applications across businesses. These
concepts and applications from real life case studies will help identify opportunities, which
can be successfully implemented for long term profitability.
Pedagogy – The teaching methodology will include a mix of lectures, discussions of prereadings, presentations by practitioners, exercises and case analysis. The cases are
integrative in nature but will also help develop an appreciation of specific elements of CRM.
Group Project –
Option 1 - Identify any organisation which is practicing some form of CRM. Start working
with them to understand the objectives, strategy, structure and process of relationship
management. Identify the key issues they faced in implementation especially related to
financial and marketing evaluation of the program. Interview some relationship customers
of this organisation to understand the customer perspective.
Option 2 – Choose any topic in CRM and write a paper based on literature review or use a
data set for analytics to identify opportunities for CRM.
Evaluation –
Case Analysis Presentations
Group project
Exam
- 30%
- 30%
- 40%
Textbook - G. Shainesh and Jagdish N Sheth (2006),’Customer Relationship
Management – A Strategic Perspective’ Macmillan: New Delhi.
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Customer Relationship Management
Course Outline - PGP (2009-10)
Coverage
The course is divided into four modules Module 1 - CRM Concepts,
Module 2 - CRM Applications in Consumer and Business Markets,
Module 3 - CRM Tools, Techniques and Technologies, and
Module 4 - CRM Implementation
Module 1: Sessions 1-5
The Concept of Customer Relationship Management
Text: Chapters 1-4
This module focuses on the conceptual and theoretical foundations of CRM. A number of
theoretical perspectives developed in economics, law and social psychology are being
applied in CRM. These include transactions cost analysis, agency theory, relational
contracting, social exchange theory, network theory, game theory and interorganizational
exchange behavior. Resource allocation and resource dependency perspectives and
classical psychological and consumer behavior theories have also been used to explain
why organizations and consumers engage in relational behavior. An overview of these
theories will help develop insights on CRM from multiple perspectives.
Other topics include –
 Evolution of customer relationships
 Benefits of CRM
 Transaction vs. Relationship orientation
 Relationship building as a process
 The ladder of loyalty
 Bonding for customer relationship
 Zero Customer Defections
 Market share vs. share of customer
 Lifetime value of customers
Session 1 : CRM : The Strategic Imperatives
Reading – Chapter 1
Session 2: Conceptual Foundations of CRM
Reading – Chapter 2
Case Analysis – Angels and Devils: Best Buy’s New Customer Approach
Session 3: Building Customer Relationships
Reading – Chapter 3
Case Analysis – A Fruitful Passion for Orange
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Session 4: Economics of CRM
Reading – Chapter 4
Case Analysis - Rosewood Hotels & Resorts: Branding to Increase Customer
Profitability and Lifetime Value
Session 5:
Case Analysis – CRM at Capital One
Additional Recommended Readings
Roland Rust, Valarie A. Zeithaml ,and Katherine N. Lemon (2004), “Customer-Centered
Brand Management,” Harvard Business Review, September, pp. 110-118.
Parvatiyar, A and Sheth, J.N. (2001), “Conceptual Framework of Customer
Relationship” in Customer Relationship Management – Emerging Concepts, Tools and
Applications, Sheth, J.N., Parvatiyar, A. and Shainesh, G., Eds., New Delhi: Tata
McGraw Hill, pp. 3-25.
Fournier, S, Dobscha, S, and Mick, D. G. 'Preventing the Premature Death of
Relationship Marketing', Harvard Business Review, January - February 1998, pp. 42-51.
Payne, A., 'Relationship Marketing : A Broadened View of Marketing', in Adrian Payne
(Ed.), Advances in Relationship Marketing, Kogan Page, 1997, pp. 29-40.
Juttner, U. and Wehrli, H. P., 'Relationship Marketing from a Value System Perspective',
in Adrian Payne (Ed.), Advances in Relationship Marketing, Kogan Page, 1997, pp.
223-246.
Module 2: Sessions 6-10
CRM Application in Consumer and Business Markets
Text: Chapters 5-6
This module focuses on applications and practices of CRM in different business contexts. CRM
has been applied in consumer and business markets covering goods as well as the services
sector. Rewards / loyalty programs are the most visible aspect of of CRM in consumer markets
while CRM manifests itself as Key Account Management (KAM) in business markets. Marketers
in the services businesses have been pioneers in adopting CRM. Review of the concepts and
practices of service quality, service recovery and service guarantees will be done in this module.
CRM practices in telecom, hospitality, retail and airlines and in the durables and automobile
markets will be highlighted through select cases. In addition to KAM, the concept and practice of
Customer value management (CVM) will be covered.
Session 6 -7 : CRM in B2C Markets
Reading – Chapter 5
Case Analysis : Federal Express (A) : The Money Back Guarantee
Session 8 : CRM in B2B Markets
Reading – Chapter 6
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Session 9 :
Case Analysis – P&G : Improving Consumer Value Through Process Design
Session 10:
Case Analysis – Bose Corporation: The JIT II Program
Additional Recommended Readings
Gronroos, C., 'Relationship Approach to Marketing in Service Contexts : The Marketing
and Organizational Behaviour Interface', in Adrian Payne et al. Relationship Marketing
for Competitive Advantage - Winning and Keeping Customers, Butterworth Heinemann, 1997, pp. 82-91.
Shainesh, G., and Ramneesh, M., (2000), 'Status of Customer Relationship
Management in India - A Survey of Service Firms', Hosted on the Academic Papers
Section of the CRM Forum Website, http://www.crm-forum.com /academy
Millman, T.,'Key Account Management in Business -to-Business Markets', in Adrian
Payne (Ed.), Advances in Relationship Marketing, Kogan Page, 1997, pp. 133-144.
Module 3: Sessions 11-15
CRM Tools, Techniques and Technologies
Text: Chapters 7-9
Information and communication technologies have played a key role in the rapid
adoption of CRM by businesses. These technologies, many of them developed in the
last decade, have helped in automating the customer facing functions of sales,
marketing and service. An overview of the components of eCRM Solutions help
understand the technologies which enable an organization to get a single unified view of
its customers across various ‘points of contact’. A balanced approach of CRM combines
both operational and the analytical technologies. Data warehouseing and data mining
form the support base for both operational as well as analytical CRM. The role of
datawarehousing and datamining tools and applications are highlighted to help
appreciate the analytical aspects of CRM. Coverage includes the three main
components of comprehensive CRM solutions include Campaign Management, Sales
Force Automation, and Customer Service and Support.
The functionalities and applications of a few popular CRM products targeted at large
enterprises (Siebel, MySAP, PeopleSoft, Oracle) and a few targeted at the small and
medium enterprises (SalesLogix, Talisma, Microsoft CRM, Onyx, SalesNotes) will be
covered. An overview of the emerging hosted CRM products is also provided.
Finally the role of contact centers in building customer relationship is highlighted.
Topics include
 Sales Force Automation
 Customer Service and Support
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Marketing (Campaign Management)
Datawarehouse & datamining
Evaluating technological solutions for CRM
Role of a contact center in building relationships
Components of a contact center
Economics of a contact center
Session 11: Components of eCRM Solutions
Reading – Chapter 7
Session 12:
Case Analysis – Pilgrim Bank: Customer Profitability
Session 13 : Product Offerings in the CRM Market Space
Reading – Chapter 8
Session 14:
Case Analysis – Hilton Hhonors Worldwide: Loyalty Wars
Session 15: Contact Centers for CRM
Reading – Chapter 9
Module 4: Sessions 16-20
CRM Implementation
Text: Chapters 10-11
The last module will focus on issues related to CRM implementation. The organizational
challenges of implementing CRM is underscored by the high levels of failures in
implementing technology intensive CRM solutions. This module adopts a process
oriented view of CRM implementation.
Topics include
 The CRM Roadmap
 Defining a CRM strategy
 Developing a relationship orientation
 Internal marketing
 Budgeting for Attraction vs. Retention
 Learning from Customer Defections
 Customer Retention Plan
 Evaluating Retention Programs
Session 16-17: The CRM Roadmap
Reading – Chapter 10
Case Analysis – Grey Worldwide: Strategic Repositioning Through CRM
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Session 18: Operational issues in implementing CRM
Reading – Chapter 11
Case Analysis – Customer Profitability and CRM at RBC Financial Group
Session 19:
Case Analysis – Implementing a Technology Based CRM Solution - The ICICI
Experience (pp. 184-192 of text book)
Additional Recommended Readings
Mookerjee, A. and Shainesh, G., (2000), 'Developing Measures for the Service Quality and
Relationship Strength Determinants of Customer Loyalty', in Raghavachari, M. and Ramani, K.
V., Delivering Service Quality : Managerial Challenges for the 21st Century, Macmillan India Ltd.:
New Delhi, pp. 29-35.
Reichheld, F. F., 'Learning From Defections', Harvard Business Review, March-April
1996, pp. 56-69.
Session 20: Group Project Presentations
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