Chapter 1: Introduction to CRM
1. Definitions of CRM?
-CRM is an information industry term for methodologies, software, and usually internet capabilities that
help an enterprise manage customer relationships in an organized way
-CRM is a business strategy that maximizes profitability, revenue and customer satisfaction by organizing
around customer segments, fostering behavior that satisfies customers, and implementing customer-
centric processes.
2. Types of CRM?
1. Strategic - Strategic CRM is a core customer-centric business strategy that aims at winning and
keeping profitable customers.
2. Operational - Operational CRM focuses on the automation of customer-facing processes such
as selling, marketing, and customer service. Use Marketing automation, salesforce automation,
service automation.
3. Analytical - Analytical CRM focuses on the intelligent mining of customer related data for
strategic or tactical purposes.
4. Collaborative - Collaborative CRM applies technology across organizational boundaries with a
view to optimizing company, partner and customer value
3. What is IDIC?
Model of CRM: Used to build closer 1 to 1 relationships with customers.
o Identify who your customers are and build a deep understanding of them
o Differentiate your customers to identify which customers have most value now and
which offer most for the future.
o Interact with customers to ensure that you understand customer expectations and their
relationships with other suppliers or brands
, o Customize the offer and communications to ensure that the expectations of customers
are met
4. Gartner’s competency model of CRM? (8 components)
1. CRM Vision: Leadership, Social Worth, Value Proposition
2. CRM Strategy: Objective, Segments, Effective Interaction
3. Valued Customer Experience: Understand requirements, monitor expectations, satisfaction vs
competition, collaboration and feedback
4. Organizational Collaboration: Culture and structure, customer understanding, people skills,
competencies, incentive and compensation, 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: Cost to Serve, Satisfaction, Loyalty, Social Costs
, 5. Paynes and Frow’s 5-process model
o Strategy development process (strategic CRM)
♣ Business strategy
♣ Customer strategy
o Value creation process (strategic CRM)
♣ Value customer receives
o Multichannel integration process (operational CRM)
o Performance assessment process
♣ Shareholder results
♣ Performance monitoring
o Information management process (analytical CRM)
1. Definitions of CRM?
-CRM is an information industry term for methodologies, software, and usually internet capabilities that
help an enterprise manage customer relationships in an organized way
-CRM is a business strategy that maximizes profitability, revenue and customer satisfaction by organizing
around customer segments, fostering behavior that satisfies customers, and implementing customer-
centric processes.
2. Types of CRM?
1. Strategic - Strategic CRM is a core customer-centric business strategy that aims at winning and
keeping profitable customers.
2. Operational - Operational CRM focuses on the automation of customer-facing processes such
as selling, marketing, and customer service. Use Marketing automation, salesforce automation,
service automation.
3. Analytical - Analytical CRM focuses on the intelligent mining of customer related data for
strategic or tactical purposes.
4. Collaborative - Collaborative CRM applies technology across organizational boundaries with a
view to optimizing company, partner and customer value
3. What is IDIC?
Model of CRM: Used to build closer 1 to 1 relationships with customers.
o Identify who your customers are and build a deep understanding of them
o Differentiate your customers to identify which customers have most value now and
which offer most for the future.
o Interact with customers to ensure that you understand customer expectations and their
relationships with other suppliers or brands
, o Customize the offer and communications to ensure that the expectations of customers
are met
4. Gartner’s competency model of CRM? (8 components)
1. CRM Vision: Leadership, Social Worth, Value Proposition
2. CRM Strategy: Objective, Segments, Effective Interaction
3. Valued Customer Experience: Understand requirements, monitor expectations, satisfaction vs
competition, collaboration and feedback
4. Organizational Collaboration: Culture and structure, customer understanding, people skills,
competencies, incentive and compensation, 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: Cost to Serve, Satisfaction, Loyalty, Social Costs
, 5. Paynes and Frow’s 5-process model
o Strategy development process (strategic CRM)
♣ Business strategy
♣ Customer strategy
o Value creation process (strategic CRM)
♣ Value customer receives
o Multichannel integration process (operational CRM)
o Performance assessment process
♣ Shareholder results
♣ Performance monitoring
o Information management process (analytical CRM)
