What is required for an effective CRM-minded business?
An enterprise need the right & customer-centred leadership, strategy, and culture to support the essential processes of marketing, sales, e-commerce and service.
What do you need to know if you want to in in today’s ‘relationship economy’?
You’ve got to know who your customers are - their habits, their preferences, their experiences with you, and their ultimate value to you.
How has new channels, like the Internet, made it more difficult for businesses?
New channels, like the Internet, have made it easier for customers to shop for the best service and the best deals, creating even more competition for the same customer base.
What are key hurdles for implementing CRM?
- A lack of discipline in measuring ROI from CRM initiatives.
- Product based organizational structure. Too much business are organized around product groups or geography instead of customer segments.
- No complete view of customer history.
- Not one executive “owns” the customer experience, no accountability.
What’s an important investment principle in CRM?
If I invest a dollar in the relationship I expect to receive more than a dollar of value, either in savings or revenue, in return.
Explain this image.
This is the CRM Business Model. In this model there are two variables; the mindset (strategy & customer philosophy) and the connectivity (process & infrastructure).
The mindset variable has three different degrees:
- Market focused
- Customer focused
- Relationship focused
The connectivity variable has three different degrees:
- Unconnected
- Departmental
- Integrated
When you combine these variables with their degrees you get nine different CRM business models.
What do we understand under mindset?
Strategy & customer philosophy.
Examples:
- measuring customer value
- managing effective customer relationships
- performance measurements for customer-facing employees
- approach towards applying real-time intelligence to business operations
- corporate philosophy
- CRM ownership
- customer participation in offer development, marketing and product delivery
What do we understand under connectivity?
Processes & infrastructure of a business.
Examples:
- Transparency of customer profiles and histories
- Channel mix and touchpoint integration
- connectivity of workflow streams
- degree of front office and back office integration
- level of infrastructure integration
- degree of push/pull knowledge transfer
Which represent the most sophisticated CRM model?
Relationship Optimizer
Are there profitable companies in each business model?
Yes
Could a single company be represented by multiple models?
Yes, if within the company the business units operate autonomously.
What industry generalizations can be made?
High tech represent some of the strongest performers, but also has high variability.
Financial, services and insurances companies operate at the average.
Consumer packaged goods and utilities are focused more on markets rather than customers.
Give the 5 dominant CRM business models.
- Basic Transactors
- Basic Connectors
- Pleasant Transactors
- Customer Satisfiers
- Relationship Optimizers
Give the characteristics of the Basic Transactors.
- Limited recognition of individual customers or preferences
- Emphasize a quality service or product, not a lifetime customer experience
- Use mass marketing techniques to reach relatively undifferentiated audiences
Example: wasproducten zoals Vanish & Dash???
Give the characteristics of the Basic Connectors.
- Limited recognition of individual customers or preferences
- Provide undifferentiated service levels to all customers
- Technology and infrastructure in place is deparmental or silo-based and focused on efficiency
Example: Belgacom??
Give the characteristics of the Pleasant Transactors.
- Recognize needs and preferences of individual customers
- Emphasize customer satisfaction
- Lack infrastructure to provide consistent delivery across enterprise
Example: ????
Give the characteristics of the Customer Satisfiers.
- Satisfy customers to ensure continued revenue streams
- Limited focus on individual customer profitability or lifetime value across enterprise
- Some real-time recognition of customer status across touchpoints
Example: ????
Give the characteristics of the Relationship Optimizers.
- Vary treatment of each customer, based on lifetime value, across the enterprise
- Capture complete history of customer actively across channels and products
- Collaborate with customers on product design and delivery
- Real-time access to a single customer data repository
Example: Amazon???
