Slide 2.

Customer Relationship
Management
Chapter 2

Peelen, Customer Relationship Management Powerpoints on the web, 2nd edition © Pearson Education Limited 2014
Slide 2.2

CRM Definition
• Meta Group: Integrated cust. contact pts.
– Pg 33. 2nd para. ‘IT-corner’
• Payne & Frow (2005): Process. No IT?
– Pg 34. 2nd para. ‘know cust. & dev. relations’.
• Gartner (2004): IT-enabled bus. Strategy
– Pg 34. 4th para. ‘balance btw $ and ’.
• McKenna: real-time mktg. LT cust. rel.
– Pg 35. 2nd para. ‘walls torn down’.

Peelen, Customer Relationship Management Powerpoints on the web, 2nd edition © Pearson Education Limited 2014
Slide 2.3

Figure 2.1 CRM building blocks

Peelen, Customer Relationship Management Powerpoints on the web, 2nd edition © Pearson Education Limited 2014
Slide 2.4

CRM Strategy
• Direction to org. as a whole.
• Market share; size etc
• Policy for L.T. customer relationships
• Many departments across the organization
is involved. Ensures fit btw the depts.
• More or less customized solutions?
• 1 to 1, or mass-marketing?

Peelen, Customer Relationship Management Powerpoints on the web, 2nd edition © Pearson Education Limited 2014
Slide 2.5

Customer-centric Organization
• Concerned of customers, not functional
process.
• Marketing, sales, after-sales.
• Employees: Mindset, competencies,
values, norms, mission.
• Abilities to use process and infrastructure.
• Plan-Do-Check-Act: close the loop.

Peelen, Customer Relationship Management Powerpoints on the web, 2nd edition © Pearson Education Limited 2014
Slide 2.6

Individualized Propositions
• Cust. Experience: physical & social.
• e.g: pacemaker, vehicle insurance.
• Databases, + qualitative mkt survey.
• Co-creation: buyers - partners
• Individualization of value proposition:
value (perceived benefits) and price (cost
incurred)

Peelen, Customer Relationship Management Powerpoints on the web, 2nd edition © Pearson Education Limited 2014
Slide 2.7

Customer Knowledge/Intelligence
• KYC. Identify prospective & existing cust.
• Customer profile
– What has the customer purchased?
– Preferred channel of communication?
• Databases, + qualitative mkt survey.
• Goal: relationship that is mutually profitable.
• Info that help customers: Timely, accurate
& appropriate solutions.

Peelen, Customer Relationship Management Powerpoints on the web, 2nd edition © Pearson Education Limited 2014
Slide 2.8

Cross-Channel Communication
• Decisions to buy or not to buy – ‘Moments of
truth’.
• Poor interactions?
– Hard to process request
– Register/react to complaints?
• So many channels (social media, comparison
websites etc). Difficult to experience true customer
dialog? Can companies participate?
• Increasing reach (quality channels) and reducing
costs. Replace expensive channels & sacrifice
personalized and intensive service experience?
• Think of AirAsia? Peelen, Customer Relationship Management Powerpoints on the web, 2nd edition © Pearson Education Limited 2014
Slide 2.9

CRM Systems &

Implementation
• Small firms – individualized approach may not
require complex IT systems
• Larger firms – differentiate customers value
(high or low)
• Legacy problem: outdated PCs. Pg 39 para 3.
• Integrate systems (web, sales mgmt., mobile
apps, social networks).
• Front & back office: S.O.A.
• Acquisition, ordering, payment, complaints,
queries. Unifi/Telco?
Peelen, Customer Relationship Management Powerpoints on the web, 2nd edition © Pearson Education Limited 2014