a comprehensive business model for increasing revenues and profits by focusing on customers.
both an overarching business philosophy and a process tool to facilitate a truly customer-driven enterprise.
“… a journey of strategic, process, organizational and technical change whereby a company seeks to better manage its enterprise around customer behaviors. This entails acquiring knowledge about customers and deploying this information at each touchpoint to attain increased revenue and operational efficiencies.”
Customer-Centric Cultures Include…
Adopting a partnership business model with mutually shared risks and rewards
Defining selling as customer business consultation
Formalizing customer analysis processes and agreements
Being proactive in educating customers about value chain and cost reduction opportunities
Focusing on continuous improvement principles stressing customer satisfaction
Objectives of CRM
Customer Retention - retain loyal and profitable customers and channels
Customer Acquisition - acquire customer based on known characteristics which drive growth and increase margins
Customer Profitability - increase individual customer margins by offering the right product at the right time
Advantages of CRM
Reduces advertising costs
Increases awareness of customer needs
Tracks the effectiveness of promotional campaigns
Allows competition for customers based on service, not prices
Prevents overspending on low-value clients and under spending on high-value ones
Speeds the time it takes to develop and market a product
Improves use of the customer channel
The CRM Process Cycle
10 Critical Questions in CRM
Who are our customers?
What do our customers want and expect?
What is the value potential of our customers?
What kind of relationship do we want to build?
How do we foster exchange?
How do we work together and share control?
Managerial Decision Making
Who are we?
How do we organize to move value closer to our customers?