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7b7d3francis Buttle CRM Value Chain
7b7d3francis Buttle CRM Value Chain
Type of CRM:
Strategic
Is a core customer centric business strategy that aims at winning and keeping profitable
customers?
Operational
Focuses on automation of the customer facing processes of the business, such as selling,
marketing, customer service
Analytical
Focuses on the intelligent mining of customer related data for strategic or tactical
purposes
Collaborative
Applies technology across organizational boundaries with a view to optimizing company,
partner and customer value
IDIC MODEL
According to IDIC Model which developed by Peppers and Rogers, Consultancy Firm,
companies should take four actions in order to build closer one-to-one relationships with
customers:
IDENTIFY who your customers are and build a deep understanding of the
customer
Based on the QCi Model, Customer management activities are contain of Aqcuisition,
Penetration, Retention the Customer.
Customer portfolio analysis (CPA) and customer intimacy (CI) are primarily analytical
activities, which customer portfolio analysis is segmentation and customer intimacy is
customer needs analytics. Network development is step how to partner marketing funds.
And the last, managing the customer lifecycle means campaigns and events.
Classify customers into different groups that are then managed on a portfolio or collective
basis, which different customer have different services so company can increase the profit
performance and maximize resource effectiveness. In other words, company make
segmentation of its customer. Here is Market Segmentation Process:
Customer Intimacy
The purpose of customer intimacy is to get to know customers better so that more
intelligent CRM decisions can be made.
Major Forms of Network are Supplier Networks and Distribution Networks. But actually,
SCOPE consist of Supplier, Customer (belong to the focal firms), Owner and Investor,
Partners, Employee. Management in networks is both about managing individual
relationships and managing clusters of relationships. Partner in value delivery are agents,
brokers, management contractors, consortia, franchisees, licensees
Value is the customers perception of the balance between benefits received and sacrifices
made to experience those benefits.
Three major types of sacrifice have been identified: money, search and psychic costs.
Companies can offer improved value to customers by creating and delivering better
solutions to customers problems.
The sources of customer value are represented by what marketers call the marketing mix.
These are the 4Ps: product, price, promotion and place. In the services environment, the
4Ps are supplemented by three additional Ps: process, physical evidence and people. In
the B2B environment, value propositions have long been customized. Customization is
now emerging as a powerful force in the B2C environment too. Any of the 7Cs can be
customized.
Management can create additional value by their management of the 7Ps. For example,
product innovation, branding and productservice bundling are ways to create additional
value. Similarly, service quality (RATER) improvement programmes, service guarantees,
service-level agreements (SLA) and service recovery programmes may be seen as value
adding.
The customer lifecycle has been collapsed into three major management activities:
In B2B Prospecting, First, find the leads, and then qualified them based on: Do the leads
need our products? Do they have ability to pay? Is the lead authorized to buy? If all yes,
leads become prospect.
Customers to be retained are customers who have high lifetime value (High volume
customer, Inspirations or door openers customer), highly committed customers, and
recently acquired customers. Strategies for Customer Retention can be in negative or
positive one.
Cross sell by Selling additional products and services. In means not only sell 1 product.
Up sell by Selling higher value products and services or add more products by making
different size of products
SUMMARY
CRM is the core business strategy that integrates internal processes and functions, and
external networks, to create and deliver value to targeted customers at a profit. It is
grounded on high-quality customer data and enabled by information technology.
REFERENCES