CRM 01

• Strategic or Collaborative CRM centralizes customer data for marketing, sales, and service professionals to see
• Visibility into all customer communications, purchase history, service requests, notes, and other details helps service reps solve customer problems
• Collaborative CRMs can automatically act on customer information to expedite service
• Two major elements of Collaborative CRM:

  • Interaction management: tracks all customer interactions and communication methods
  • Channel management: decides which medium to communicate with each customer based on insights gained
• Operational CRM relegates repetitive tasks to computers, allowing sales, marketing, and customer service representatives to focus on their strengths
• Automates processes related to identifying prospects, tracking customer interactions, forecasting sales, crafting and evaluating marketing campaigns
• Analytical CRM aggregates customer information to reveal patterns for businesses to identify, understand, and capitalize on customer trends and behavior
• Insights gathered can be used to generate and convert more leads, craft smarter marketing campaigns, enhance customer service, and assist with pipeline analysis, sales forecasting, budgeting, and reporting duties
• Collaborative CRM bridges the gap between teams and departments to share information and create a seamless customer experience
• Operational CRM streamlines processes for customer relationships and helps apply them to the central business process
• Helps companies generate leads, convert leads into contacts, and provide service infrastructure needed to retain customers
• Analytical CRM enables organizations to better understand customer data and interactions, turning large amounts of data into actionable insights
• The IDIC Model for building closer one-to-one relationships with customers:

  • Identify customers and build a deep understanding of them
  • Differentiate customers based on current and projected lifetime value
  • Interact with customers to understand expectations and relationships with other suppliers
  • Customize offers and communications to meet customer expectations
• The CRM Value Chain model by Francis Buttle consists of five primary stages and four supporting conditions leading to enhanced customer profitability
• Primary stages include Customer portfolio analysis, Customer intimacy, Network development, Value proposition development, and Relationship management
• The Five-Process Model of CRM by Adrian Payne and Pennie Frow emphasizes a cross-functional approach for effective CRM processes
• Core processes in CRM include Strategy development, Value creation, Multichannel integration, Performance assessment, and Information management
• The Schema Model is a benchmarking tool aiming to help companies balance customer engagement and profitability
• Proposes achieving sustainable incremental profitability as a key financial goal for customer management
• Identifies four key foundations for successful customer engagement
• Strategic or Collaborative CRM centralizes customer data for marketing, sales, and service professionals to see
• Visibility into all customer communications, purchase history, service requests, notes, and other details helps service reps solve customer problems
• Collaborative CRMs can automatically act on customer information to expedite service
• Two major elements of Collaborative CRM:

  • Interaction management: tracks all customer interactions and communication methods
  • Channel management: uses insights from interaction management to decide how to communicate with each customer
• Operational CRM relegates repetitive tasks to computers, allowing sales, marketing, and customer service reps to focus on their strengths
• Operational CRM automates processes related to identifying prospects, tracking customer interactions, forecasting sales, creating and evaluating marketing campaigns
• Analytical CRM aggregates customer information to reveal patterns for businesses to identify, understand, and capitalize on customer trends and behavior
• Insights from Analytical CRM can be used to generate and convert more leads, create smarter marketing campaigns, enhance customer service, and assist with pipeline analysis, sales forecasting, budgeting, and reporting
• Businesses can benefit from more than one type of CRM, creating synergies by implementing multiple types
• Insights from Analytical CRM can be integrated into Operational CRM to send targeted communications to customers based on specific conditions
• Consider a Collaborative CRM if:

  • Sales, marketing, and service departments are distributed across several locations
  • Most client interactions occur online
  • Multiple departments independently interact with prospects and customers throughout the sales cycle
• Consider an Operational CRM if:

  • Businesses of all shapes and sizes can benefit
  • Automates day-to-day sales, marketing, and customer service tasks
  • Good fit for businesses with linear sales processes or many repetitive tasks
• Consider an Analytical CRM if:

  • Businesses value data-driven decision-making
  • Service providers and account-based sales organizations can benefit from insights for identifying and converting more leads
  • Analytical CRMs can be costly compared to Operational and Collaborative CRMs
• The IDIC Model for building closer one-to-one relationships with customers:

  • Identify customers and build a deep understanding of them
  • Differentiate customers based on current and projected lifetime value
  • Interact with customers to understand expectations and relationships with other brands
  • Customize offers and communications to meet customer expectations
• The CRM Value Chain model by Francis Buttle consists of five primary stages and four supporting conditions leading to enhanced customer profitability
• Primary stages include Customer portfolio analysis, Customer intimacy, Network development, Value proposition development, and Relationship management
• The Five-Process Model of CRM by Adrian Payne and Pennie Frow emphasizes a cross-functional approach for effective CRM processes
• Core processes in the model are Strategy development, Value creation, Multichannel integration, Performance assessment, and Information management
• The Schema Model is a benchmarking tool aiming to help companies balance customer engagement and profitability
• Key financial goal is sustainable incremental profitability

  • Four key foundations underpin successful customer engagement