Chap004

CHAPTERCHAPTER

PERSPECTIVES ON CUSTOMER RELATIONSHIP MANAGEMENT

04

4-1

WHY CRM?

CRM is a timely and relevant topic that ties together a number of important concepts of modern marketing management.

CRM is an important enabler of great marketing.

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OBJECTIVES AND CAPABILITIES OF CRMUltimately, CRM has three major

objectives:

4-3

OBJECTIVES AND CAPABILITIES OF CRMTo accomplish these objectives

requires a clear focus on product and service attributes

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THE CRM PROCESS CYCLE

1. Knowledge Discovery

2. Market Planning

3. Customer Interaction

4. Analysis and Refinement

4-5

PROCESS CYCLE FOR CRMEXHIBIT 4.1

Source: Ronald S. Swift, Accelerating Customer Relationships: Using CRM and Relationship Technologies (Upper Saddle River, NJ: Prentice Hall PTR, 2001), p. 40.

4-6

THE CRM PROCESS CYCLE

Knowledge Discovery

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CUSTOMER MARKETING VERSUS CONSUMER MARKETING

Mass Marketing

Consumer Marketing : Targeting big groups

Customer Marketing: Focus of developing relationships with individual

4-8

MARKETING EVOLUTION WITH CHARACTERISTICS AND TECHNOLOGY ATTRIBUTES

EXHIBIT 4.2

Source: Ronald S. Swift, Accelerating Customer Relationships: Using CRM and Relationship Technologies (Upper Saddle River, NJ: Prentice Hall PTR, 2001), p. 38.

4-9

ADVANTAGES OF CUSTOMER MARKETING

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CRM FACILITATES A CUSTOMER-CENTRIC CULTURE1. Adopting a relationship or partnership business

model overall, with mutually shared rewards and risk management.

2. Redefining the selling role within the firm to focus on customer business consultation and solutions.

3. Increasing formalization of customer analysis processes.

4. Taking a proactive leadership role in educating customers about value chain opportunities available by developing a business relationship.

5. Focusing on continuous improvement principles stressing customer satisfaction and loyalty.

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CRM ENABLES TRANSFORMATION INTO A RELATIONSHIP-BASED ENTERPRISECustomers

1. Who are our customers?

2. What do our customers want and expect?

3. What is the value proposition of our customers?

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CRM ENABLES TRANSFORMATION INTO A RELATIONSHIP-BASED ENTERPRISEThe Relationship

4. What kind of relationship do we want to build with our customers?

5.  How do we foster exchange of value between us and our customers?

6.  How do we work together and share control?

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CRM ENABLES TRANSFORMATION INTO A RELATIONSHIP-BASED ENTERPRISEManagerial Decision Making

7. Who are we and what is our value proposition?

8. What do our products and brands represent to customers?

9. How do we organize to move value closer to our customers?

10.How do we measure and manage our performance?

11.How do we increase our capacity for change?

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WHAT HAPPENS WHEN CRM FAILS?

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WHAT HAPPENS WHEN CRM FAILS?

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