2.1.1 CRM Strategy Planning

INSTITUTE: University School of
Business
DEPARTMENT ..Management..
Masters of Business Administration
Subject Name: Customer Relationship Management
Code: BAB-754
CRM Strategy Planning and

Parameters DISCOVER . LEARN .
EMPOWER 1
Customer
Relationship
Management
Course Outcome
CO Title Level
Number
Remember
To answer as to how customer relationship
CO1 management works and the factors that Will be covered in
influence its success this lecture
Understand
To understand customer needs, fulfill customer
CO2 requirements, resolve customer complaints and
retain customers
Understand
To understand the approaches to and
CO3 guidelines used to analyze challenges in CRM
and make strategies to resolve the same.
2
Part 1
CRM Strategy
CRM
…
Three small letters, with three core concepts:
• Customer (Constituents/ Stakeholders) – The heart of your organisation
• Relationship – The key to growing your company through engagement with
your prospects, customers and stakeholders
• Management – Managing these stakeholder relationships to increase

lifetime value
CRM Strategy & Implementation

CRM
Strategy
“CRM is a business strategy whose outcomes
optimize profitability, revenue and customer
satisfaction by implementing customer-centric
processes” (Gartner)
A CRM strategy cannot be developed in isolation.

It must be relevant and linked to the overall corporate
strategy.

Why is it
important?
Successful CRM strategy will:
• Help better understand the needs of every individual customer
• Reduce customer churn - eg: lower selling costs
• Increase leads - eg: referrals
• Increase revenue per customer - eg: cross sell, upsell

• Help deliver a consistent experience every time

Challenges with Customer Interactions

So what has
changed?
Traditional buying model

So what has changed? (con’t)
A more complex buying model
• The internet
• Advances in
technology
• Social Media
• Changes in buyer
behaviour

The Eight Building Blocks of CRM
(Gartner)
1. CRM Vision: : Leadership, Market Position, Value Proposition
2. CRM Strategy: Objectives, Segments, Effective Interaction
3. Valued Customer Experience 4. Organisational Collaboration

• Understand Requirements • Culture and Structure
• Monitor Expectations • Customer Understanding
• Satisfaction vs. Competition • People: Skills, Competencies
• Collaboration and Feedback • Incentives and Compensation
• Customer Communication • Employee Communications
• Partners and Suppliers
5. CRM Processes: Customer Life Cycle, Knowledge Management
6. CRM Information: Data, Analysis, One View Across Channels
7. CRM Technology: Applications, Architecture, Infrastructure
8. CRM Metrics: Value, Retention, Satisfaction, Loyalty, Cost to Serve

CRM Strategy consideration
Information Mobile trends
abundance People
Social
Media Cloud trends
Customer
expectation Marketing
s sophistication
Customer
Processes Technology Big Data
behaviour
Staff expectations Alternative products Pricing Pressure

and services

People
• Communicate vision
• Recognise customer-centric behaviour
• Train staff on Customer Service and customer dispute resolution
• Make customers front and centre for all key business decisions
• Measure and report
o Surveys (written or face to face)
o Social media monitoring
o Mystery Shopping
o Management involved with Customer

Processes
• Lead management
• Sales Pipeline management
o Call back responses
• Accounts Management
o Record account specifics and all account interactions across the
organisation
o Customer care program
o Account Ratings –Advocate, Passive, Detractor
• Service Desk
o Case management
o Dispute recognition
o Social media management
• Marketing
o Leverage technology, individual behaviours and context to drive
more
personalized marketing and engage prospects and customers

Technology
• Implement a CRM System
o Use CRM to cement your process
o Make CRM central source of truth
• Integrate your CRM system

o Content Management System (CMS)
o eCommerce platform
o Marketing Automation software
o Learning Management System
o ERP
o Accounting software

From Product focused to Customer Centric
Features Product-Focused Customer-Focused
Customer • Discrete transaction at a point in time • Customer lifecycle orientation

Orientation • Event-oriented marketing • Work with customer to solve both immediate and long term
• Narrow focus issues
• Build customer understanding art each interaction
Solution • Narrow distribution of customer value proposition • Broad definition of customer value proposition
Mindset • Off-the-shelf products • Bundles that’s combines products, services and knowledge
• Top-down design • Bottom-up, designed on the front lines
Advice • Perceived as outsider selling in • Working as an insider

Orientation • Push product • Solution focus
• Transactional relationship • Advisory relationship
• Individual to individual • Team-based selling
Customer • Centrally drive • Innovation and authority at the front line with customer
Interface • Limited decision-making power in field • Incentives based on customer economics and team
• Incentives based on product economics and performance
individual performance
Business • “One size fits all” approach • Tailored business streams

Processes • Customisation add complexity • Balance between customisation and complexity
Organisation • Rigid organisational boundaries • Cross-organisational team

Linkages and • Organisation solos control resources • Join credit
Metrics • Limited trues across organisational boundaries • High degree of organisational trust
Source: Booz Allen Hamilton

CRM adoption curve

CRM adoption curve

CRM adoption curve

CRM adoption curve

CRM adoption curve

References
1. Bardicchia, Marco (2020). Digital CRM: Strategies and Emerging Trends:
Building Customer Relationship in the Digital Era. p. 12.
2. "Management Tools - Customer Relationship Management - Bain & Compa
ny"
. www.bain.com. Retrieved 23 November 2015.
3. Shaw, Robert (1991). Computer Aided Marketing & Selling. Butterworth
Heinemann. ISBN 978-0-7506-1707-9.
4. "CRM History: The Evolution Of Better Customer Service"
. www.streetdirectory.com. Retrieved 24 May 2020.
5. "How Context Sits at Intersection of CRM, ACD". Retrieved 8 June2017.
6. "SAP R/3 SD Wiki". Retrieved 7 January 2019.
7. "Navision 3.0". Retrieved 7 January 2019.
8. Jump up to:a b c "History of CRM Software". comparecamp.com.
Retrieved 8 February 2017.
9. Lakshman Jha (2008).
Customer Relationship Management: A Strategic Approach. ISBN
9788190721127. Retrieved 8 June 2017.
10."Gartner Announces Customer Relationship Management Summit 2009".
gartner.com. 5 August 2009. Retrieved 8 February 2017. 21
References
1. "Industry Specific/Vertical Market CRM Solutions". smallbizcrm.com. Retrieved 8
February 2017.
2. The Forrester Wave: CRM Suites For Enterprise Organizations, Q4 2016,
Forrester, 21 November 2016, retrieved 13 September 2017
3. Buttle, Francis; Maklan, Stan (11 February 2015).
Customer Relationship Management: Concepts and Technologies. ISBN
9781317654766.
4. Feiz, Ghotbabadi,Khalifah, (2016-01) Customer Lifetime Value in Organisations
5. Jump up to:a b c d "Types of CRM and Examples | CRM Software"
. www.crmsoftware.com. Retrieved 22 November 2015.
6. Jump up to:a b
"What is sales force automation (SFA)? - Definition from WhatIs.com"
. WhatIs.com. Retrieved 26 November 2015.
7. Buttle, Francis (2003). Customer relationship management. London: Routledge.
ISBN 9781136412578.
8. Jump up to:a b c d
"What is customer relationship management (CRM) ? - Definition from WhatIs.com
"
. SearchCRM. Retrieved 22 November2015.
THANK YOU
For queries you can reach me on

Email: [email protected]

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INSTITUTE: University School of

CRM Strategy Planning and

• Customer (Constituents/ Stakeholders) – The heart of your organisation

• Relationship – The key to growing your company through engagement with

your prospects, customers and stakeholders

• Management – Managing these stakeholder relationships to increase

CRM Strategy & Implementation

A CRM strategy cannot be developed in isolation.

CRM Strategy & Implementation

• Help better understand the needs of every individual customer

• Reduce customer churn - eg: lower selling costs

• Increase leads - eg: referrals

• Increase revenue per customer - eg: cross sell, upsell

CRM Strategy & Implementation

CRM Strategy & Implementation

CRM Strategy & Implementation

CRM Strategy & Implementation

1. CRM Vision: : Leadership, Market Position, Value Proposition

2. CRM Strategy: Objectives, Segments, Effective Interaction

3. Valued Customer Experience 4. Organisational Collaboration

6. CRM Information: Data, Analysis, One View Across Channels

7. CRM Technology: Applications, Architecture, Infrastructure

8. CRM Metrics: Value, Retention, Satisfaction, Loyalty, Cost to Serve

CRM Strategy & Implementation

Staff expectations Alternative products Pricing Pressure

CRM Strategy & Implementation

o Social media monitoring

o Management involved with Customer

CRM Strategy & Implementation

CRM Strategy & Implementation

• Integrate your CRM system

CRM Strategy & Implementation

Customer • Discrete transaction at a point in time • Customer lifecycle orientation

Advice • Perceived as outsider selling in • Working as an insider

Business • “One size fits all” approach • Tailored business streams

Organisation • Rigid organisational boundaries • Cross-organisational team

Source: Booz Allen Hamilton

CRM Strategy & Implementation

CRM Strategy & Implementation

CRM Strategy & Implementation

CRM Strategy & Implementation

CRM Strategy & Implementation

CRM Strategy & Implementation

For queries you can reach me on

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