2. Five Key Processes That Help Define CRM
DANIELA NAVAS
PRIYANK MISTRI
DEVAN VASILE
PRATIK DESHPANDE
3. CRM
Definition – CRM is the strategic approach that is concerned with creating
improved shareholder value through the development of appropriate
relationships key customers and customer segments. CRM unites the potential of
relationship marketing strategies and IT to create profitable, long-term
relationships with customers and other key stakeholders.
(Baran & Galka, 2013)
4. Five Key Processes that help define CRM
1. Strategy Development – At both business and customer level. Also strategize
mass segmentation and one to one customer relationship.
2. Value Creation – Identify value for customers and products (valued by
customers). Also identify high value customers with high CLV.
3. Multichannel Integration – Provide perfect customer experience by
integrating various channels.
4. Information Management – Collecting , Managing and using customer
information from all touch points and provide appropriate marketing
response
5. Performance Assessment – Measuring the success of CRM efforts.
5. Why is your topic the most important element someone should know
before embarking on a CRM initiative?
The objective should preferably be SMART ( Specific, Measurable, Actionable, Realistic, Timely)
For the success of any CRM initiative and well strategized plan is required. CRM is critical for the success of
the organisation. It is a difficult business to practise and implement because it can apply to different levels
of customers e.g.: distributors, dealers, partners etc. Also some of the key components of CRM shift when
considering B2B or B2C relationships e.g.: SFA. Therefore a CRM strategy is required which gives a holistic
solution. Knowing the Five key process that help define the CRM actually enables us to learn each and
every aspect of CRM, strategy development, value creation, information management and others form the
base of any great CRM initiatives. All the other tangible components are possible to implement once the
five key processes are in place.
6. How is your topic connected to the other 3 topics in this week’s
discussion?
•You need value creation if you want to identify tangible components of CRM. A 360 degree view which
is a standard consistent and complete view of customer data from all touch points helps CRM in value
creation.
•Unless we identify the 5 key processes and build up a strategy development plan, business intelligence
and work flow would fail to transmit BI to front office personal which is a tangible component of CRM.
•Many CRMs fail as there is no establishment of performance metrics. One of the five key processes
speaks about having a proper measurement system in place to monitor CRM efforts.
•To ensure complete integration of all functional components like customer care, SFA, campaign
management and segmentation (6 step timeline of CRM) information management is important as it
provides an appropriate marketing response to the customer.
•Five key processes defines the multichannel integration as the base of the CRM initiative as it helps
provide perfect customer experience by integrating various channels.
7. What are the compelling reasons why CRM
initiatives could be at risk of this topic were
ignored?
1. With relationships comes management which is important in defining CRM pertaining to the organizations ability
to develop strategies that attract and retain customers
2. Without strategy development the company would fail at both business and customer levels. This is because
without strategy a company will not have the means to get to the goal.
3. Value creation is critical to identify products/service values and customer values. Without this the company would
not identify direct relationships with the customer, therefore loyalty of the customer would be compromised.
4. Multi-channel integration is necessary because having multiple touch points enables to create an impact on the
customer and therefore the buying cycle. In turn without this CRM would fail.
5. Information management plays a vital role in success of CRM because without correct or complete information
about the customer there will be unsuccessful service to the customer.
6. Performance assessment is very important because measuring our CRM efforts would help us to track the
companies milestone towards success of CRM initiatives.
