Four Types of CRM Where is the

word
“technology”?

Type of CRM Dominant characteristic

Strategic CRM is a core customer-centric business
Strategic strategy that aims at winning and keeping profitable
customers.
Operational CRM focuses on the automation of
Operational customer-facing processes such as selling, marketing
and customer service.
Analytical CRM focuses on the intelligent mining of
Analytical customer-related data for strategic or tactical
purposes.
Collaborative CRM applies technology across
Collaborative organizational boundaries with a view to optimizing
company, partner and customer value.
 Business Logics

1. Product-oriented businesses believe that customers choose products with

the best quality, performance, design or features
1. E.g., Nokia

2. Production-oriented businesses believe that customers choose low-price

products
1. E.g., Micromax, Lava

3. Sales-oriented businesses make the assumption that if they invest enough

in advertising, selling, public relations (PR) and sales promotion, customers
will be persuaded to buy
1. E.g., Tata Docomo, Airtel
Customer Centricity (Business Logics)

4. A customer or market-oriented company shares a set of

beliefs about putting the customer first. It collects,
disseminates and uses customer and competitive information
to develop better value propositions for customers. A
customer-centric firm is a learning firm that constantly adapts
to customer requirements and competitive conditions
4. E.g., Vodafone
5. Micromax, Tata Docomo (aspiring)
 Operational CRM
Marketing automation
Market segmentation
Campaign management
Event-based (trigger) marketing
Sales force automation
Account management
Lead management
Opportunity management
Pipeline management
Contact management
Quotation and proposal generation
Product configuration
Service automation
Case ( incident or issue) management
Inbound communications management
Queuing and routing
Service level management
Sources of Customer-Related Data for
Analytical CRM
• Internal sources
– Sales data (purchase history), financial data (payment
history, credit score), marketing data (campaign response,
loyalty scheme data) and service data.

• External sources
– Geo-demographic and life-style data from business
intelligence organisations, for example.
 Beneficiaries of Analytical CRM

• Customer
– Analytical CRM can deliver timely, customized, solutions to the
customer’s problems, thereby enhancing customer
satisfaction.

• Company
– Analytical CRM offers the prospect of more powerful cross-
selling and up-selling programs, and more effective customer
retention and customer acquisition programs.
 Collaborative CRM
• CRM inter-department

• CRM across organizations

CRM Programs Can Potentially Improve

• Analytical CRM
– Customer Segmentation
– Trend Analysis
• Operational CRM
– Campaign Management
– Tele-Marketing/Tele-Sales
– Activity and Time Management
– Quotation and Order Processing
– Delivery and Order Fulfillment
– Customer Service and Support
– Remote Access
• Collaborative CRM
– Enterprise Portals
– Customer Access
– Supplier Access
– Personalization
 Misunderstandings About CRM

1. CRM is database marketing

2. CRM is a marketing process

3. CRM is an IT issue

4. CRM is about loyalty schemes

 Core Definition of CRM

• CRM is the core business strategy that integrates

internal processes and functions, and external
networks, to create and deliver value to targeted
customers at a profit. It is grounded in high quality
customer-related data and is enabled by information
technology.
 CRM Constituencies

1. Companies implementing CRM

2. Customers and partners of those companies

3. Vendors of CRM software

4. CRM application service providers (ASPs)

5. Vendors of CRM hardware and infrastructure

6. Management consultants
 New Frontiers in CRM
– Mass Customization – Using flexible processes and organizational
structures to produce varied and individualized products and
services at the price of standard mass-produced offerings (e.g.,
Satellite/Dish TV programs)

– Personalization – Customization of some features of a product or

services so that the customer enjoys more convenience, lower
costs, or some other benefit (e.g., Customizing car features)

– Segment-of-One Marketing – Based on the idea of the firm learning

individual reactions to marketing strategies, then treating this
customer differently than other customers (e.g., Jewellery Design)

– Customerization – Mass customization + personalization +

segment-of-one, dependent on a web-based or electronic interaction
(e.g., Build your own car, get your own nail polish, perfume)