Chapter 3

Types of CRM

Chapter 3 – Types of CRM 1

Learning Objective

To know about the Operational CRM

To understand Collaborative CRM
To Understand Analytical CRM

Chapter 3 – Types of CRM 2

Introduction to Types of CRM

• CRM recognises that customers are the basis and

crux of a business and that the company’s success
depends on effectively managing relationships with
them.

• CRM requires a customer centric business

philosophy and culture to support effective marketing,
sales and service processes.

Chapter 3 – Types of CRM 3

Introduction to Types of CRM

• Broadly there are three types of CRM

• Operational CRM
• Collaborative CRM
• Analytical CRM

Chapter 3 – Types of CRM 4

Operational CRM

• Part of CRM that supports daily sales, marketing or

service tasks

• Involves creating target groups based on criteria

revealed by the data analysis or managing event
attendance e.g. in seminars

• Mostly involves areas where there is a direct

customer contact

• Deals with customer touch points e.g. a call to a

customer support helpline
Chapter 3 – Types of CRM 5
Components of Operational CRM

• Sales Force Automation

• Enterprise Marketing Automation

• Activity Management

• Campaign Management

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Sales Force Automation

• A type of program that automates business tasks

such as inventory control, sales processing and
tracking of customer interactions

• Information system that efficiently automate the sales

process and management of the sales force

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Key benefits of Sales Force Automation
(SFA)
• Contact management and diary management

• Account management

• Driving leads and managing opportunities

• Generating quotes

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Key benefits of Sales Force Automation
(SFA)
• Sales forecasting

• Tracking competitors

• Reports and Analytics

• Mobile applications

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Common pitfalls to success of SFA

• Lack of buy in

• Improper and incomplete data input

• A non-responsive system

• Limitations of access to the system

• Poor training and lack of proper customisation

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Enterprise Marketing Automation (EMA)

• Main function of the EMA is to run different marketing

programs in the organisation

• Helpful in running efficient marketing campaign

• Necessary information includes appropriate

segmentation of customers and a robust
segmentation strategy

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Key components of EMA

• Promotions

• Event based marketing

• Loyalty and loyalty programs

• Partner management

• Response management

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Parameters for customer segmentation
• Homogeneity within a particular customer segment

• Heterogeneity across different industry and customer

segment

• Customer should respond in an identical manner to a

particular marketing campaign

• Customer should be reachable through the campaign

• Organisations should be able to create a marketing

strategy for the group
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Segmentation Strategy
• Organisations are better able to understand and
satisfy the needs of the customer

• Organisations are able to generated higher profits

• Provides a great opportunity for growth

• Creation of a long and fruitful customer relationship

• Lead to higher market share

Chapter 3 – Types of CRM 14

Activity Management

• An integral part of the CRM and administers all

activities undertaken by the company’s employees

• Can be treated as subsequent documents for a wide

variety of other business transactions such as
opportunities, leads sales orders and contracts

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Campaign Management Systems

• Campaign management systems are primarily

characterised for the following key functionalities
• Opportunity identification

• Relationship planning

• Campaign management

• Customer interaction

• Measuring and evaluating

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Collaborative CRM

• Collaborative CRM broadly consist of two major

aspects
• Interaction Management

• Channel Management

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Analytical CRM

• Analytical CRM supports back office operations and

analysis, It deals with all the operations and
processes that do not directly deal with customers

• Primary Goal of Analytical CRM is to develop, support

and enhance the work and decision making capability
of an organisation

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Features of Analytical CRM

• Seizing all the relevant and essential information of

customers for creation of knowledge repository

• Determining, developing and analysing inclusive set

of rules and analytical methods to scale and optimise
relationship with customers

• Implementing or deploying the results to enhance the

efficiency of CRM system and processes

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Features of Analytical CRM

• Combine and integrate the values of customers with

strategic business objectives

• Analytical CRM is a solid and consistent platform

which provide analytical applications to help predict,
scale and optimise customer relations

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Advantages of Analytical CRM

• Leads in making more profitable customer base by

providing high value services

• Helps in retaining profitable customers through

sophisticated analysis and making new customers
that clones best customers

• Helps in addressing individual customer’s needs and

efficiently improving the relationships with new and
existing customers

• Improves customer satisfaction and loyalty

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Analytics has following role in the Customer
life Cycle Management

• Customer analytics

• Marketing analytics

• Sales Analytics

• Service Analytics

• Channel Analytics

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Summary
• CRM is a business strategy to select and manage
customers to optimise long term value

• CRM requires customer centric business philosophy

and culture to support effective marketing, sales and
services

• Three types of the CRM

• Operational
• Collaborative
• Analytical

Chapter 3 – Types of CRM 23