A Strategic Framework for Customer Relationship Management

A Strategic Framework for Customer descent Management Introduction This article explores the plethora of literature available on CRM and congenericship marketing and emphasizes the contend for a single, mental deal- base case model that helps in making a omnibus(prenominal) CRM system followed by its successful implementation. The target bea is to highlight CRMs role in enhancing node think of and, in annul the shargonholder range.Various CRM and marketing experts, who provide their views in the article, emphasize the need for a foil- operating(a), form-oriented show up which identifies trio alternative spatial relations of CRM within a holistic organizational context. They try to tell a come apart five report cross-functional CRM makees starting from a dodge bob upment process, followed by treasure mental institution process, multichannel integration process, an breeding instruction process, and in the end surgical operation sagacity process.Based on these 5 pillars, they put forrader a new conceptual exemplar specifying the roles and functions associated with from each matchless element in the framework. summary CRM is a strategical nestle that is implicated with creating improved sh atomic number 18holder value finished the growth of appropriate relationships with key clients and guest segments. There is a need to develop relationship marketing strategies and IT architecture to bring forth profitable, long-term relationships with nodes and different key stakeholders.The article is organized mainly in tercet parts. Firstly, it explores the three alternative perspectives of CRM. Secondly, it considers the need for a cross-functional process-based forward motion to CRM where the strategists develop criteria for process picking and identify the five key CRM processes. Next, they send word a strategic conceptual framework that is constructed of these five processes followed by the examination of the components of each process. Hence, CRM whoremaster be defined with three perspectives forming a continuum.At one corner is the narrowly and tactically defined particular engine room solution, followed by wide-cut-ranging technology (customer oriented IT and Internet), and customer centric border on (holistic approach emphasizing macrocosm of sh areholder value) as we move towards right at the some another(prenominal) end of the continuum. Processes are the backbone of every initiative or a framework. absence of a strategic framework for CRM is one reason for the disappointing results associated with m both CRM initiatives.The strategic perspective starts with reviewing the following four process selection criteria for marketing and melodic phrase processes which are now augmented by 2 new additional suggestions. 1)The processes should comprise a small set that addresses tasks critical to the consummation of an organizations goals. 2)Each process should hold to the value intro process . 3) Each process should be at a strategic or macro level. 4)The processes need to bare clear interrelationships. 5) New Each process should be cross functional in nature. 6)New.Each process would be considered by see practitioners as being both logical. The purgation of CRM strategy rump start with the fundamental fundamental moveion research as interaction and discourse play a crucial role in the different stages of research. It consists of interaction with various executives, meetings and group discussion with emphasis on testing concepts, new ideas, and results. On the other hand, the process identification and CRM framework humans begins with identification of generic CRM processes which are apply by an expert panel of experient CRM executives.The resultant five generic processes are the strategy development process, the value creation process, the multichannel integration process, the information management process, and eventually the surgery mind process. These fi ve key generic CRM processes help form a preliminary conceptual framework which is unendingly improved for better business results and change magnitude share value. Next are the business/customer strategy and the value creation processes.The business strategy process can commence with a review of a companys vision and its relation to the CRM model. It is followed by the review of the industrial and combative environment. Here the traditional industry psychoanalysis is augmented by more modern-day approaches for deeper environmental analysis and the understanding the shock absorber of disruptive technologies. Customer strategy on the other hand, deals with CRM perspective which requires a cross functional approach, especially when different departments are involved in strategy development.Other central facets are information management process and performance assessment. Information management is interested with the collection, integration and use of customer selective informa tion and information from all processes. It involves managing assets exchangeable the information repository, IT systems and analysis tools. Data repository provides a corporate memory of all customers. Systems take on the organizations computer hardware, software, middleware IT, reckon office and back office actions manage SFA and call center management.Lastly, analysis tools realize many activities involved in interfacing at one time with customers with technologies desire data mining. The article to a fault talks about Multichannel Integration process, which takes into accountancy the combinations of different conduct with customer interaction perspective. It takes the outputs of the business strategy and value creation processes and translates them into value-adding activities with customers. It ensures that the customer experiences remains highly positive degree within those channels. AnalysisEven though, thither has been enough emphasis on the cross-functional, pro cess-based CRM strategy framework that aims to help companies, it is mostly based on large industrial companies and not the small and medium sized companies. I agree with the views that the size and complexity of such(prenominal) enterprises are most likely to tin big CRM challenges, but small racing shell initiatives should be considered as well. I take hold with objective of the article which deals with a process-based conceptual framework and cross functional approach for strategic CRM model.Also, I agree with parentage which has been put forward again and again in the article for the need of an pleasurable definition that encompasses all facets. The framework proposed in the article is just a dons model, yet a potentially useful starting point for the development of improved insight into these aspects of CRM theory. But fit to me, because of the changing scenarios and fickle nature of market there is still a need for delimiting the domain, agreeing on a definition for CR M, and mental synthesis a research agenda. I would like to add that certainly there is a need for measure and control the CRM performance.But, at the same time traditional approach for performance measurement systems will not be suitable for cross functional CRM. There have been new initiatives like balanced scorecard which enables a wide range of metrics designs. It consists of shareholder results and performance monitoring. Ideally, it should reflect the performance standards necessary across the five major processes to ensure that CRM activities are planned and practiced effectively and that a feedback loop exists to maximize performance approach and organizational learning.The article also explores the two-fold channels, such as field sales forces, Internet, direct mail, telephony, traditional television, e-commerce and m-commerce, including e-mail to interact with its customers. For example, making use of e-commerce opportunities and the fundamental economic characterist ics of the Internet can enable a much deeper level of segmentation commonness than is affordable in most other channels. With the advent of Internet, interactive digital television, wandering(a) telephony and text messaging, wireless application protocol, and 3G mobile overhauls can be utilized in this field.The challenge lies in the ability of strategy to uphold the same high standards across different channels enhancing customer experiences. As far as associated value goes, I believe that outputs of the strategy development process legislates to programs that both pull in and deliver value and maximizes the lifespan value of desirable customer segments. It includes determining what value the company can provide to its customer along with what value the company can receives from its customers.These value propositions include the relationship among the performance of the product, the fulfillment of the customers needs, and the union cost to the customer over the customer rela tionship life cycle. Like any other initiative, measurement is an integral part by the use of the metrics. The performance assessment sees that the organizations strategic aims in terms of CRM are in concurrence with the acceptable standard and that a arse for future improvement is established. ConclusionOften, the organizations are plagued by the lack of a astray accepted and appropriate definition of CRM along with the failure to recognize its constitution. This can lead to the failure of a CRM project as this way the organization views CRM from a hold in technology perspective or undertakes CRM on a fragmented basis. The plethora of information requires a cross-functional integration of processes, people, operations, and marketing capabilities that is enabled through information, technology and applications.The options provided in the article explore the opportunities like cross-selling and up-selling to acquire or intone customer database. To ensure that technology solutio ns frequent CRM, it is important to conduct IT planning from the perspective of providing a seamless customer service rather than planning for functional or product-centered departments and activities. On the organizations front, the focalize is on increasing customer lifetime value by determining the alteration in potential customer advantageousness across different customer segments along with the prepositions like customer acquisition and customer retention.