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Define CRM

It is a process of creating & retaining profitable customer with long term relation by delivering customer value and satisfaction. CRM is a cross functional enterprise system that helps a business to develop and manage its customer oriented business processes.

CRM activities and process of capital one. To be effective in CRM, customer service responsiveness is a key differentiator, and the more one knows about the customer, the greater the advantage for the company. Capital one had a powerful database that kept the information on one in seven households, calling habits of its customers, profitability, likely purchase habits and the probability of selling new products based on previous history and customers with similar profiles. Learning from the Capital One Case Capital one is not about the status quo, it is about constantly reinventing itself the way it does business. It is about creating a unique CRM strategy that creates true value in the eyes of its target customers. Differentiation in the marketplace starts with a CRM strategy, a recognition that there is a need to tailor products and services to the needs of its defined target markets. Strategy Testing and Innovation- Product Strategy Company constantly test and reassess the products, learn and apply, reinvent and then outmode their new innovation. Data Mastery- Infrastructure and Customer Strategy It maintains database and uses testing to learn how to customize products and services to the individual customer. New Product Development- Product and Channel Strategy The company partnerships with internet service providers in order to introduce online customer service and instant decisions for on-line card applications. IDIC Cycle of Capital one.

Identifying who the companies customers are and building a deep understanding of them. Differentiating their customers in order to identify which amongst them have most value now and which offer most for the future. Besides, the differentiation can allow the companies to devise and implement customer specific strategies designed to satisfy individually different customer need. The clients represent different levels of value to the company and they their needs are radically not the same from the enterprise. According to Peppers and Rogers (2004), the customer differentiation task

will involve an enterprise in categorizing its customers by both their value to the firm and by what needs they have.

Interacting with them in order to ensure that companies understand customer expectations and their relationships with other suppliers or brands. Thus, companies must improve the effectiveness of their interactions with clients. Each successive interaction with a customer should take place in the context of all previous interactions with that customer. A conversation with a customer should pick up where the last one left off. Effective customer interactions provide better insight into customers needs. Customizing the offer and communications to ensure that the expectations of customers are met. Indeed, the company should adapt some aspect of its behaviour toward a customer, based on that individuals needs and value. To involve a customer in a relationship, a company needs to adapt its behaviour to satisfy the customers expressed needs. This might entail mass-customization a product or tailoring some aspect of its service (Peppers, Rogers and Dorf, 1999).