Lesson 3:

Customer relationship management strategy

Bùi Ngọc Tuấn Anh (PhD) – anh.bnt@ou.edu.vn
Content

• 3.1 CRM Perspectives

• 3.2. Elements of a CRM Strategy
• 3.3. Steps in Developing a CRM Strategy
• 3.4. Implementing the CRM Strategy

Lesson 3: Customer relationship management strategy

anh.bnt@ou.edu.vn
Content 3.1 CRM Perspectives

• 3.1 CRM Perspectives

• 3.2. Elements of a CRM
Strategy
• 3.3. Steps in Developing a
CRM Strategy
• 3.4. Implementing the CRM
Strategy

focuses on technology focuses on total focuses on

customer experience customer satisfaction

Lesson 3: Customer relationship management strategy

anh.bnt@ou.edu.vn
 CRM Perspectives

• 3.1 CRM Perspectives

• 3.2. Elements of a CRM
Strategy
• 3.3. Steps in Developing a
CRM Strategy
• 3.4. Implementing the CRM
Strategy
CRM at the
functional
level
 Set of processes to
execute marketing
functions like sales
force automation or
marketing campaign
management
CRM at the CRM at the
customer- facing organizational
level level- strategic CRM
 Set of activities that
provide a single-view  Knowledge about
of the customer customers and their
across all contact preferences have
channels implications for the
 Customer entire organization
intelligence obtained
is available across all

Lesson 3: Customer relationship management strategy

anh.bnt@ou.edu.vn

• 3.1 CRM Perspectives
• 3.2. Elements of a CRM
Strategy
• 3.3. Steps in Developing a
CRM Strategy
• 3.4. Implementing the CRM
Strategy
Strategic CRM
• CRM is the strategic process of selecting customers that a firm
can most profitably serve and shaping interactions between a
company and these customers. The ultimate goal is to optimize
the current and future value of customers for the company.
• The CRM activities are initiated and managed from the very top
of the organization.
• CRM is a continuing process, continuous effort to become an
ever more customer-centric company
Lesson 3: Customer relationship management strategy
anh.bnt@ou.edu.vn

• 3.1 CRM Perspectives
• 3.2. Elements of a CRM
Strategy
• 3.3. Steps in Developing a
CRM Strategy
• 3.4. Implementing the CRM
Strategy
3.2. Elements of a CRM Strategy
• A good CRM strategy should address the following five elements
(Becker, Greve, & Albers, 2009; Finnegan & Currie, 2010)
• 1. CRM vision
• 2. Culture of customer orientation
• 3. Alignment of organizational processes
• 4. Data and technology support
• 5. CRM implementation
Lesson 3: Customer relationship management strategy
anh.bnt@ou.edu.vn
 CRM Implementation Matrix

• 3.1 CRM Perspectives Customer dimension

• 3.2. Elements of a CRM
Strategy Acquisition Growth and Decline and
stage retention stage exit stage
• 3.3. Steps in Developing a
CRM Strategy
Analytical
• 3.4. Implementing the CRM CRM
Strategy
Management
Dimension Operational
CRM

Each cell in the matrix corresponds to a specific implementation activity or process

Customer dimension: captures influences of changing phase of a customer-firm relationship
Management dimension: constitutes analytical and operational aspects of CRM
Lesson 3: Customer relationship management strategy
anh.bnt@ou.edu.vn
 3.3 Steps in Developing a CRM Strategy

• 3.1 CRM Perspectives

• 3.2. Elements of a CRM
Strategy
• 3.3. Steps in Developing a
CRM Strategy 1. Gain 3. Analyze
2. Build a CRM 4. Define the
• 3.4. Implementing the CRM enterprise-wide business
project team. CRM strategy
Strategy commitment. requirements.

Lesson 3: Customer relationship management strategy

anh.bnt@ou.edu.vn
 Step One: Gain Enterprise-wide Commitment
Budget
allocation
• 3.1 CRM Perspectives for the
• 3.2. Elements of a CRM solution

Strategy
Bottom-up
• 3.3. Steps in Developing a buy-in from
Top down system users
CRM Strategy management
• 3.4. Implementing the CRM commitment
Strategy
Dedicated
full-time
project team

Enterprise-wide Commitment
Lesson 3: Customer relationship management strategy
anh.bnt@ou.edu.vn
 Step Two: Build A CRM Project Team

• 3.1 CRM Perspectives

• 3.2. Elements of a CRM
Strategy Management
• Provide leadership, Information services/
• 3.3. Steps in Developing a technical personnel
CRM Strategy motivation and supervision

• 3.4. Implementing the CRM

Strategy
Sales, marketing and services
Financial staff
groups

External CRM expert

• Provide a valuable source of
objective information and
feedback
Lesson 3: Customer relationship management strategy
anh.bnt@ou.edu.vn

• 3.1 CRM Perspectives
• 3.2. Elements of a CRM
Strategy
• 3.3. Steps in Developing a
CRM Strategy
• 3.4. Implementing the CRM
Strategy
Step Three: Analysis of Business Requirements
Gathering information to:
• Identify the services and workflows and processes
products that are being • Identify gaps in technology
supported functionality
• Map current workflows, • Map functionality to business
interfaces, and inter- processes
dependencies
• Develop a new technology and
• Review existing technologies,
functionality framework
features and capabilities
• Develop a conceptual design
• Discuss the vision for the and prototype plan
business and the operational
plan
• Define business requirements
• Develop enhanced business
Lesson 3: Customer relationship management strategy
anh.bnt@ou.edu.vn
 Step Four: Define the CRM Strategy

• 3.1 CRM Perspectives

• 3.2. Elements of a CRM Value Proposition
Strategy Characteristics of a defined CRM strategy

• 3.3. Steps in Developing a

CRM Strategy Business Case
• 3.4. Implementing the CRM
Strategy
A defined CRM strategy Customer Strategy

Enterprise Transformation
Plan

Other Stakeholders

Lesson 3: Customer relationship management strategy

anh.bnt@ou.edu.vn

• 3.1 CRM Perspectives
• 3.2. Elements of a CRM
Strategy
• 3.3. Steps in Developing a
CRM Strategy
• 3.4. Implementing the CRM
Strategy
Summary
• Strategic CRM focuses on shaping the interactions between the
firm and its customers in a way that facilitates maximizing the
lifetime value of the customer to the firm
• Business case for CRM determines whether an investment in
CRM meets its expectations by linking the delivery of customer
value with the creation of shareholder value, or ROI
• CRM strategy calls for a transformation in business process,
organization, location and facilities, data flows, application
architecture and technology infrastructure
Lesson 3: Customer relationship management strategy
anh.bnt@ou.edu.vn

• 3.1 CRM Perspectives
• 3.2. Elements of a CRM
Strategy
• 3.3. Steps in Developing a
CRM Strategy
• 3.4. Implementing the
CRM Strategy
3.4. Implementing the CRM Strategy
• The implementation of the CRM strategy is a process of
planning and executing a series of small CRM projects.
• These projects are all aimed at addressing the elements of the
CRM strategy.
Implementation Projects
Operational Projects Analytical Projects
Lesson 3: Customer relationship management strategy
anh.bnt@ou.edu.vn
 3.4. Implementing the CRM Strategy

• 3.1 CRM Perspectives

Operational CRM projects
• 3.2. Elements of a CRM
Strategy • Enable the company to meet the technical and functional
requirements of the CRM strategy.
• 3.3. Steps in Developing a
CRM Strategy
• 3.4. Implementing the Analytical CRM projects
CRM Strategy
• Have the objective to obtain a good understanding of the
customer’s needs, expectations, and behaviors.

Application projects
• Focus on deploying the operational and analytical outputs to
improve marketing decisions and customer relationships.

Lesson 3: Customer relationship management strategy

anh.bnt@ou.edu.vn

• 3.1 CRM Perspectives
• 3.2. Elements of a CRM
Strategy
• 3.3. Steps in Developing a
CRM Strategy
• 3.4. Implementing the CRM
Strategy
Operational Projects
• Objectives:
• Construct infrastructure meeting technical and functional
requirements of CRM
• Don’t directly generate revenue, but provide resources to
perform value-added CRM Projections
• Maximize profitability
• Reduce support costs
• Increase sales and customer loyalty
Lesson 3: Customer relationship management strategy
anh.bnt@ou.edu.vn
 Components of CRM Infrastructure
Information
Delivery/
• 3.1 CRM Perspectives Online Catalogs
• 3.2. Elements of a CRM
Strategy Customer Database
• 3.3. Steps in Developing a
CRM Strategy Personalization and Content
Management
• 3.4. Implementing the
CRM Strategy
Sales force Automation

Partner Channel Automation

Customer Services

Lesson 3: Customer relationship management strategy

anh.bnt@ou.edu.vn

• 3.1 CRM Perspectives
• 3.2. Elements of a CRM
Strategy
• 3.3. Steps in Developing a
CRM Strategy
• 3.4. Implementing the
CRM Strategy
Analytical Projects
• Also called Data Analytics
• Leverages resources created by operational projects
• Adds value by enabling firms to understand their customers
• Helps determine customer strategy and development of on-going
CRM strategy
• Major activities:
• Customer data transformation - data warehousing, data
integration
• Customer knowledge discovery - data analysis, prediction
based on results
Lesson 3: Customer relationship management strategy
anh.bnt@ou.edu.vn
 Deploying Operational and Analytical Outputs

• 3.1 CRM Perspectives

• Issues with executing CRM strategies
• 3.2. Elements of a CRM
Strategy • Resistance from employees
• 3.3. Steps in Developing a
CRM Strategy • Motivation and Training
• 3.4. Implementing the • Availability of information
CRM Strategy

Lesson 3: Customer relationship management strategy

anh.bnt@ou.edu.vn
 Improving profitability by investing in CRM

• 3.1 CRM Perspectives Medical

Economic
Legal

• 3.2. Elements of a CRM

Strategy Marketing
Social Issues
• 3.3. Steps in Developing a
CRM Strategy Challenges
Ignored Technical
Managerial
• 3.4. Implementing the Political

CRM Strategy

Resources
Required
Original Process

Pre-CRM

Challenges
Addressed
New Process

Lesson 3: Customer relationship management strategy

anh.bnt@ou.edu.vn Time

• 3.1 CRM Perspectives
• 3.2. Elements of a CRM
Strategy
• 3.3. Steps in Developing a
CRM Strategy
• 3.4. Implementing the
CRM Strategy
Summary
• The key elements of CRM are touch points and CRM applications
that span sales, marketing and service functions
• Once the elements of CRM are identified it is important to
calculate the ROI of CRM to see whether investment in CRM is
worthwhile
• Building a complete customer database incorporating all the
relevant customer information from different departments and
external sources is very crucial for a successful analytical CRM
project
Lesson 3: Customer relationship management strategy
anh.bnt@ou.edu.vn