CRM Models

Nilesh Joglekar

MODELS of CRM
IDIC
Gartner Competency Model
The CRM Value Chain
Paynes Five Process Model

Framework for CRM- Peppers and

Rogers (IDIC)
Identify prospects and customers
Differentiate customers by needs
and value to company
Interact to improve knowledge
Customize for each customer

Gartner Competency
Model

CRM value chain II

om
st
Cu

Customer
Customer
Network
Value
Manage Portfolio
Intimacy
Development
Proposition
the Analysis
(SCOPE)
Development
Customer
Lifecycle
Customer
Network
Sources of
Customer acquisition
Market
managemencustomer value
segmentatiodatabase
-who/how/what? KPIs
development t
n
-4Ps/7Ps

Internal data Internal

-customisationCustomer retention
Sales
-who/how? KPIs
buy-in
forecasting Data
Customer
- exceed
experience
Life-time enhancement External
expectations/ add value/
network
social and structural
value
Data
Process
bonds/ commitment
-suppliers/
reengineering
Customer warehousing
investors/

analysis
-self-manufactureCustomer
Data mining partners
toolkit
-self-service development
Benchmarking Network
People issues -who/what/how? KPIs
-SWOT/ PEST/
position
Privacy
5
Technology Organisation design
forces/
BCG

EDatabase
enablement -physical/virtual?
matrix
technology and commerce
-KAM/crossfunctional
teams
software
EDI/Extranets/
Metrics
portals

pr
y of
ta
bi
lit

er

The Strategic Framework for CRM

CRM as a set of cross functional

process

Model of a customer centric culture

Customer-centric organisational culture
leadership

formal
systems
Internal
relationships

employee employee
experience behaviour

customer
experience

Features of a customer centric culture

1. Identifying which customers to serve
2. Understanding customers current and current and future
requirements
3. Obtaining and sharing customer knowledge across the company
4. Measuring customer results: satisfaction, retention, future buying
intention, referral behaviours (word-of-mouth), share of wallet
5. Designing products and services which meet customers
requirements better than competitors
6. Acquiring and deploying resources (information, materials, people,
technology) that create the products and services that satisfy
customers
7. Developing the strategies, processes and structure that enable the
company to meet customer requirements

BONDING FOR CUSTOMER

RELATIONSHIP
Berry and Parasuraman (1991) have identifed four
levels of bonds.

Financial Bonds - Volume and Frequency rewards, Bundle and

Cross-selling, and Stable pricing,
Social Bonds - Personal relationships, continuous relationships
and Social Bonds among customers,
Customization Bonds - Customer intimacy, Mass
Customization and Anticipation/Innovation,
Structural Bonds - Integrated, information systems, Joint
Investments, and Shared Processes and Equipment.

Culture
Culture is the product of shared norms, beliefs, values,
symbols, and rituals that defne what is important and
shape appropriate attitudes and behaviors
Culture has the potential to act as a control mechanism
that provides direction and helps to coordinate
employee activities.
Energize employees by appealing to their higher ideals
and values and rallying them around a set of
meaningful, unifed goals.

Managing Culture
Recruiting, selecting, reassigning, and laying off people
for culture ft
Managing culture through socialization and training
Managing culture through reward systems