29 January 2017

Strategic CRM (Customer Relationship Management)

Perpectives of CRM(Customer Relationship Management)
CRM at the Functional level – Set of processes to execute marketing functions like sales force automation or mktg. campaign management
CRM at the Customer-facing level
 – Set of activities that provide a single-view of the customer across all contact channels – Customer intelligence obtained is available across all customer-facing functions
CRM at the Organizational level
- Strategic CRM – Knowledge about customers and their preferences have implications for the entire organization

Defined as the set of organizational values, beliefs, and strategic actions that enable the implementation of customer management principles. Characterized by a top management belief and commitment that the customer is at the center of activity. Recognizes that customers are heterogeneous in needs and value to the firm and reflects a readiness to treat different customers differently. Considers the fact that a longer-term view of revenues from customers needs to be taken into account.
Comprises organization wide creation and synchronization of processes, systems, and reward systems enabling implementation of customer management principles. Strategic CRM works best for organizations that are organized around crossfunctional processes rather than functional silos. Firmly incorporates needs of the customer and goals of the firm into product and service delivery.
Characterized by an understanding that value provided to target customers should be what drives all processes. Individual processes work in sync with common goal of attracting and retaining target customers. Customer management compatible incentives drive employee and organizational goals simultaneously. Processes are designed in such a manner that they automate a feedback.