Implementing CRM – The Process Essay Example

According to Griffin (2002), winning customer loyalty involves seven distinct steps, each of which requires extensive effort. Starting from being a suspect, a customer progresses through various stages including becoming a prospect, disqualified prospect, first-time customer, repeat customer, client, and finally, an advocate. Griffin also cites several examples from the book of traditional methods used by companies to cultivate customer loyalty, with the Harley Davidson model being particularly noteworthy.

In 2003, the company marked its hundredth anniversary with nationwide customer loyalty events like motor cycle rallies. Such activities highlight the importance of evolving from conventional customer loyalty building methods to automated CRM processes. This approach can be adapted by all companies, whether or not CRM is a fundamental strategy. Every business should consider winning new customers, making the seven-step Functions Process (Operations, Analytics, and Collaborative) an essential tool.

In essence, CRM involves three main facets: operational, which automates marketing, sales, and service functions; analytical, which analyzes customer behavior; and collaborative, which facilitates contact with customers. Understanding the literature behind each of these aspects is important. Operational CRM support involves tasks such as automating sales forces for improved field force accountability through mobile synchronization and integrated product configuration. The customer service and support function automates service requests, complaints, information, and product returns through web, phone, or in-person interactions.

While online functions make communication easier, it's important to maintain a personal touch. To integrate customer functions with environmental information, firms analyze PEST factors through Enterprise Marketing Automation. This includes analyzing the business environment, competitors, and industry trends. Demographic analysis, variable segmentation, and predictive modeling are some of the functions performed. Operational CRM provides significant benefits to organizations. For Chinese firms,

an effective operational CRM program is a necessity to identify growth areas, retain web-interacting customers through automated programs, and provide personalized service through representative interaction.

Analytical CRM involves analyzing operational CRM data and other sources to identify opportunities for improving customer relationships. Targeted campaigns can then be launched to engage with customers more frequently and ultimately increase sales and customer acquisition. Through decision support tools like dashboards, reporting, metrics, and predictive modeling, analytical CRM also contributes to strategy and research. In addition, gathering customer intelligence through data collection and analysis leads to a better understanding of customer needs and the ability to anticipate them.

The various aspects of customer analysis, such as profiling, segmentation, cost to serve analysis, returns on investment evaluation and predictive modeling are encompassed in this.