MODELS of CRM

IDIC
Gartner Competency Model
The CRM Value Chain
Paynes Five Process Model

Framework for CRM- Peppers and

Rogers (IDIC)
Identify prospects and customers
Differentiate customers by needs
and value to company
Interact to improve knowledge
Customize for each customer

Gartner Competency Model

CRM value chain II

Customer
Customer
Network
Value
Manage Portfolio
Intimacy
Development Proposition
the Analysis
(SCOPE) Development Customer
Lifecycle
Customer
Market
segmentation database
development
Sales
Internal data
forecasting
Data
Life-time
enhancement
value
Data
Customer
analysis toolkitwarehousing
-SWOT/ PEST/ Data mining
5 forces/
matrix

BCG

Network
Sources of
Customer acquisition
management customer value
-who/how/what? KPIs
Internal buy- -4Ps/7Ps
Customer retention
customisation
in
-who/how? KPIs
Customer
External
- exceed expectations/ add
experience
network
value/ social and structural
-suppliers/
investors/
partners

Benchmarking

Network
position

Privacy

E-commerce

Database
technology and
software

portals

Process
reengineering

Customer development

-self-manufacture -who/what/how?
KPIs
self-service

People issues

Technology
-EDI/Extranets/ enablement

bonds/ commitment

Organisation design
-physical/virtual?
KAM/crossfunctional
teams

Metrics

The Strategic Framework for CRM

CRM as a set of cross functional process

Model of a customer centric culture

Customer-centric organisational culture
leadership

formal
systems

Internal
relationships

employee
experience

employee
behaviour

customer
experience

Features of a customer centric culture

1.
2.
3.
4.

5.
6.

7.

Identifying which customers to serve

Understanding customers current and current and future
requirements
Obtaining and sharing customer knowledge across the company
Measuring customer results: satisfaction, retention, future buying
intention, referral behaviours (word-of-mouth), share of wallet
Designing products and services which meet customers
requirements better than competitors
Acquiring and deploying resources (information, materials, people,
technology) that create the products and services that satisfy
customers
Developing the strategies, processes and structure that enable the
company to meet customer requirements

BONDING FOR CUSTOMER

RELATIONSHIP
Berry and Parasuraman (1991) have identified four
levels of bonds.
Financial Bonds - Volume and Frequency rewards,
Bundle and Cross-selling, and Stable pricing,
Social Bonds - Personal relationships, continuous
relationships and Social Bonds among customers,
Customization Bonds - Customer intimacy, Mass
Customization and Anticipation/Innovation,
Structural Bonds - Integrated, information
systems, Joint Investments, and Shared Processes
and Equipment.

Culture
Culture is the product of shared norms, beliefs,
values, symbols, and rituals that define what is
important and shape appropriate attitudes and
behaviors
Culture has the potential to act as a control
mechanism that provides direction and helps to
coordinate employee activities.
Energize employees by appealing to their higher
ideals and values and rallying them around a set of
meaningful, unified goals.

Managing Culture
Recruiting, selecting, reassigning, and laying
off people for culture fit
Managing culture through socialization and
training
Managing culture through reward systems