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Implementing CRM – The Process Essay Example
Implementing CRM – The Process Essay Example

Implementing CRM – The Process Essay Example

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  • Pages: 2 (876 words)
  • Published: October 24, 2018
  • Type: Essay
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CRM is increasingly recognized as a balancing of strategic capabilities.

Thus it is should balance the four main CRM strategic capabilities technology, people, processes, knowledge and insight which are affected by leadership and culture, core customers, channels for stake holder communications, transactions and logistics and the business model, strategy and structure of the firm. CRM strategies of Best practice companies tend to develop additional sales from existing customers and also focus on the end customer relationships as follows as per Gordon (2002):Processes. Create processes for customer collaboration to jointly plan and create new value differentiated by each class of customer. Collaborate with the channels of distribution of intermediaries and embed business rules in the CRM data bases so that appropriate reactions by customers will trigger an action to respond to the same effectively.Technology. Technology is designed to integrate the numerous touch points of the customer with that of the company.

The need is to develop a single real time view of each customer, create an ability to sell at the exact time when the customer is prepared to buy with the correct appeal to each customer.People. These are trained to recognize the different needs of the employees just as that of the customers thereby enabling the company to provide them the value that they are seeking. The key area is to provide a capability for employees to take control of their career development. Having decided on adoption of CRM as a strategy, the next stage would be to undertake the CRM process. There are various models which are available for implementing the CRM process.

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The salient nuances of each are being discussed in succeeding paragraphs.The suitability of the application of the process models will be covered separately in the next chapter.Winning over the Customer – The Seven Step Process. The first stage in customer relationship management is winning over the customer.

Griffin (2002) has brought out how the customer is won over step by step and has indicated seven steps involved in winning customer loyalty. These stages are indicative of the extensive efforts required in building it. Customer loyalty is gradually built up from being a suspect to a prospect, a disqualified prospect, a first time customer, a repeat customer, a client and finally an advocate.The author also provides numerous examples in the book of how companies have traditionally built customer loyalty. The model of Harley Davidson is most instructive.

The company celebrated hundredth anniversary of its establishment in 2003 which also turned out to be a demonstration of its customer loyalty across America where the clients voluntarily held various events including motor cycle rallies. This underlines the need for building CRM from traditional customer loyalty building mechanisms and then graduating on to automation.This is a basic process which can be adopted by all companies and to some extent even where CRM is not a basic strategy of a company, winning new customers is a definite consideration, hence the seven step process is considered essential for all companies.The Functions Process – Operations, Analytics and Collaborative.

CRM essentially implies three functions, operations which is automation of the marketing, sales and service

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functions, analytics of analyzing the customers behavior and collaborative which provides contact with the customer.Considering the literature of each facet is thus relevant. Operational CRM support implies conduct of tasks such as automation of the sales force to improve field force accountability by mobile synchronization and integrated configuration of products. Customer service and support function enables automation of service requests, complaints, information and product returns. This is essentially carried out on the web, on telephone and even face to face.

Availability of maximum functions on the web eases contact but is also carried forward by the maintaining personal touch. The functions related to the customer are integrated with the information available from the environment by a study of the PEST factors through what some firms call Enterprise Marketing Automation. This gives the details of the business environment, the competitors and industry trends. A large number of functions such as demographic analysis, variable segmentation and predictive modeling are carried out.Thus operational CRM provides extended benefits to the organization. The first necessity for Chinese firms appears to establishing an effective operational CRM program which will enable these to view the environment and identify areas for growth, create automated programmes for interaction with the customer thus retaining those that are amenable to interaction on the web, while at the same time providing the customer personalized service through close interaction by its representatives.

Analytical CRM on the other hand entails analysis of data gathered from operational CRM as well as other sources to identify potential to improve the client relationship. This facilitates launching of targeted campaigns to interact more frequently with customers, improve sales as well as acquire more customers. This analysis will provide decision support to include dashboards, reporting, metrics and performance, enables predictive modeling and also contributes to strategy and research.Analytical Customer management is also said to be gathering of customer intelligence by collecting and analyzing information about customers. Collecting customer intelligence provides better understanding and possibility of anticipating customer needs.

It includes the processes of profiling and analysis, segmentation, cost to serve and returns on investment as well as predictive modeling.

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