An explanation on how CRM can be applied within the companies through Payne's Five Forces Model by taking an hypothetical Example of Flipkart.

1. Presented By:-
Sougata Pan
sougata_p2015@cms.ac.in
Priyatama Vidushi
priyatama_v2015@cms.ac.in
Payne's Model of CRM

2. ‘Customer relationship management may be described
as the strategic process involved in developing
interactions between a company and its customer with
an objectives of Optimizing current values of
customer’.
WHAT IS CRM ?

3. Model developed by Adrian Payne’ the model identifies five core processes in
customer relationship management CRM such as the strategy development
process, value creation process, multichannel integration process, performance
assessment process and the information management process.
PAYNE’S MODEL

4. BUSINESS
STRATEGY
1.BUSINESS VISION
2.INDUSTRY AND
COMPETATIVE
CHARACTERISTS
CUSTOMER
STRATEGY
1.CUSTOMER
CHOICE AND
CUSTOMER
CHARACTERISTICS
2.SEGEMENT
GRANULARITY
STRATEGY DEVELPOMENT
PROCESS
VALUE
CUSTOMER
RECEIVES
1. VALUE
PROPOSITION
2. VALUE
ASSESSMENT
VALUE
ORGANIZATION
RECEIVES
1.ACQUISITION
ECONOMICS
2.RETENTION
ECONOMICS
CUSTOMERSEGMENTLIFETIMEVALUEANALYSIS
COCREATION
SHAREHOLDER
RESULTS
1.EMPLOYEE
VALUE
2.CUSTOMER
VALUE
3.SHAREHOLDE
R VALUE
4.COST
REDUCTION
PERFORMANCE
MONITORING
1.STANDARDS
2.QUANTITATI-
VE AND
QUALITATIVE
MEASUREMEN-
T
3.RESULTS AND
KEY
PERFORMANCE
INDICATORS
DATA REPOSITORY
IT SYSTEMS ANALYSIS TOOLS
FRONT OFFICE
APPLICATION
BACK OFFICE
APPLICATION
SALES FORCE
DIRECT
MARKETING
ELECTRONIC
COMMERCE
OUTLETS
TELEPHONY
MOBILE
COMMERCE
INTEGRATEDCHANNELMANAGEMENT
VALUE
CREATION
MULTICHANNEL
INTEGRATION
PROCESS
PERFORMANCE
ASSESSMENT
PROCESS
PHYSICA
L
VIRTUA
L

5. • STRATEGY DEVELOPMENT PROCESS:- It is concerned with integrating the
business strategy from organization angle and customer strtegy as to how firm
interact and choose their customer
• VALUE CREATION PROCESS:- The main purpose of identifying the value the
firm can create for customer and the value the organization can also benefit
from.
• MULTICHANNEL INTEGRATION:- It consist of all virtual and physical
channels with which the firm plans to interact with. But the main thing here is
that, regardless of channel contact, the aim is to create an experience that is
uniform and also common.

6. • INFORMATION MANAGEMENT SYSTEM:- It consist of many different of
data repository it systems, back and front office applications and analytical tools.
It is thus necessary to access the visibility of the system.
• PERFORMANCE ASSESSMENT PROCESS:- It is concerned at the strategic
monitoring can be used to determine customer satisfaction and standards.

7. Taking a Hypothetical Example of
Flipkart….

8. • Integrated marketing channel
• In IDIC ,there is no storage channel
• It is a comprehensive model
• It talks about cross domain integration
• There is also a co-creation process
How different it Is……

9. • CRM is understanding customers and their expectation , and offering
them pre searched valuable service or products .
• “Nurturing excellent customer relationship builds this defensive wall
around a business that most competitors struggle to break down”.
Conclusion