Chapter 2

CRM Strategy and CRM Building

Blocks

Customer Relationship Management CRM Strategy and CRM Building Blocks

Objectives
‰ Operational excellence can be redefined
„ Competitive agility provided by CRM

„ Strategic framework of CRM

„ How to balance frontline efficiency and

effectiveness with the help of CRM
„ Ways of aligning marketing, sales and
service with customer in mind
„ How to manage customer experience
across touch points
Customer Relationship Management CRM Strategy and CRM Building Blocks
 „ Moving customers to the right channel
„ Connecting front office and back office

„ Technology framework for integration

„ How to create a CRM culture among employees

„ Importance of training and coaching frontline

employees
„ Making the best use of IT

„ Building blocks of CRM

„ CRM Strategies

„ How to build a customer growth strategy

Customer Relationship Management CRM Strategy and CRM Building Blocks
 A Strategic perspective on
CRM
„ The strategic perspective of CRM is all about
strategies for the success of CRM.

„ Successful companies deal their business

around the customer.

„ It is a mission critical element of customer

centric business strategy.
Customer Relationship Management CRM Strategy and CRM Building Blocks
 Driving New Growth
„ More than ever CRM is critical to an
organization’s success
„ To stimulate new growth, organizations
can gain from CRM
„ CRM can be used to differntiate and
discover new business opportunities

Customer Relationship Management CRM Strategy and CRM Building Blocks

 Operational Excellence
„ Spotlight has shifted to relationships
with customers and partners
„ “Best of Breed” has become new catch
word
„ Operational excellence means end-to-
end organization

Customer Relationship Management CRM Strategy and CRM Building Blocks

 Competitive Agility
„ It is organization’s ability to reinvent
itself that ensures its long-term survival
and success
„ Coping with constant change and
market dynamics, adapting business
process rapidly
„ Focus on core competency

Customer Relationship Management CRM Strategy and CRM Building Blocks

 A Strategic Framework for
CRM framework
„ Connecting front office and back office,
Creating value network with partners,
capitalizing customers insight, aligning
market sales and service, balancing
effectiveness and efficiency, managing
customers experience across touchpoint
and guiding customers to the right
channel.
Customer Relationship Management CRM Strategy and CRM Building Blocks
 Balancing Frontline Efficiency
and Effectiveness
„ Efficiency is the degree to which a
business process consumers resources
such a s time, finance or human
resources
„ Effectiveness is about how well a
process accomplished its intended
purpose

Customer Relationship Management CRM Strategy and CRM Building Blocks

 Aligning Marketing , Sales and
service with Customer in Mind
„ Marketing , sales and services are the
cornerstones of CRM
„ Conflicting goals and short-term
thinking as well as egoism and rivalry
lead to problems that can be avoided
where there is a shared CRM vision

Customer Relationship Management CRM Strategy and CRM Building Blocks

 Managing Customer Experience
Across Touch Points
„ Every customer interaction counts and
provides an opportunity to add value
whether it is face-to-face, online on the
phone or via e-mail
„ Customer wants consistency when they
interact across multiple touch points.

Customer Relationship Management CRM Strategy and CRM Building Blocks

Guiding Customers to Right
Channel
„ Successful organizations empower their
customers and guide them to the right
channel based on customer segments,
customer value and interaction type.
„ By guiding customers to right channel
customers company can save cost and
create true value for the customers.
Creating A Team Culture-
Because Employees Matter
„ Training and coaching front line
employees
„ Making the most of IT and software as
a service
„ Changing employees mindset and
empowering them to take necessary
action is key
Building Blocks of CRM
„ Vision
„ Strategy
„ Valued customer experience
„ Organizational collaboration
„ Processes
„ Information and technology
CRM Strategies
„ Gartner defines CRM as a business strategy
that maximizes profitability, revenue and
customer satisfaction by
„ Organizing around customer segment
„ Fostering behavior that satisfies customers
„ Implementing customer centric process.
 Creating a CRM Business
Strategy
„ Analyze your customer
„ crack CRM and corporate strategies
„ Keep it flexible

Customer Relationship Management CRM Strategy and CRM Building Blocks

Choice of Right Technology
„ Financial viability and ROI remains the most
important factor in selecting a vendor
„ Measure of satisfaction with CRM
„ Companies often measure success either by
ROI or by changes in customer satisfaction to
justify CRM benefits
„ Implementation of IT is the main component
of CRM
Summary
„ CRM strategies offer companies a
complete view of their customers across
the entire organization.
„ CRM strategy has to create a 360
degree view of the customers
„ CRM results into increased sales and
drive ROI