CHAPTER 6

Developing and Deploying CRM

Strategy

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PLANNING CRM IMPLEMENTATION

The CRM Hierarchy (Maslow revisited)

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FRAMEWORK FOR BUILDING CRM
STRATEGY

The Value
Discipline Model

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 BUSINESS STRATEGY: HOW DO WE DELIVER STAKEHOLDER
VALUE AND BUILD COMPETITIVE ADVANTAGE

Marketing strategy CRM strategy

How do we take advantage of market opportunities How do we get closer to the customers to deliver
and mitigate competitive threats? value to them and create value for us?

Vision, Market, Position Vision: Customer Experience

1. Market definition and audit. 1. Customer definition and behavior and

2. Analysis of strength, weakness, opportunities requirement audit.
and threats. 2. Capability analysis.

Target customer segments

Target market segments
by value.

1. Objective for each market segment 1. Objective for each customer segments,
2. Penetration, development, maintenance and 2. Acquisition, Development, Retention and
productivity. Efficiency.

Measures: market shares, brand equity and market Measures: Satisfaction, Loyalty, Cost to serve and
penetration Employee Satisfaction. 4

1. Based on product life cycle. 1. Based on the customer life cycle

EIGHT BUILDING BLOCKS OF CRM
1. CRM vision
2. CRM strategy
3. Valued customer experience
4. Organizational collaboration
5. CRM processes
6. CRM information
7. CRM technology
8. CRM metrics

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 PREPARING EACH OF THE TOUCHPOINT DEPARTMENT FOR THE NEW
CRM ROLE:

Traditional Role New CRM Role

1. Marketing Customer Advocate
Communication and Branding
solution

Selling Customer
2. Sales Selling Products
Solutions
3. Services and Delivering customers
support Delivering Services partnership and
and products supporting customers

4. IT department Enabling Business Enabling Customer

Activities Activities 6
CREATING AN ORGANISATION/GOVERNANCE STRUCTURE FOR CRM
ROLLOUT

 Steering Committee
 Programme Management Core Team

 Project Teams

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CROSS-FUNCTIONAL CRM PROGRAMME
LEADERSHIP AND GOVERNANCE

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 UNDERSTANDING AND MEASURING
SERVICE QUALITY
 Product Quality versus Service Quality
 While Product Marketing focuses on 4 ‘P’s –Marketing
has an added dimension – 5th ‘P’ – Performance.
 Services are basically intangible

 Services, especially those with high labour content are

‘heterogeneous’
 Production/Consumption of many services are
inseparable

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 ATTRIBUTES OF SERVICE QUALITY

 Dr A. Parasuraman/Leonard Berry/Valarie Zeithaml laid

out the conceptual foundation and evolved the attributes
of Service Quality, which are now used/applied widely
across service sectors.
 Service Quality is defined ‘as the extent of discrepancy
between customer expectation or desires and their
perceptions’.

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 SERVQUAL DIMENSIONS:
 Reliability: Ability to perform the promised service
dependably and accurately.
 Responsiveness: Willingness to help customers and
provide prompt service.
 Assurance: Knowledge and courtesy of employees and
service provider and their ability to convey trust and
confidence.
 Empathy: Caring, individualized attention the firm
provides to customers.
 Tangibles: Appearance of physical facilities,
equipment, personnel and communication materials.
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CONCEPTUAL MODEL OF GAPS IN
SERVICE QUALITY

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 METHODOLOGIES TO
UNDERSTAND/CAPTURE ‘VOICE OF
CUSTOMER’

 Strategic use of Complaints

 Focused Group Interviews

 Management– Frontline Contact Forums

 Customer panels

 Customer contact programs

 Customer Satisfaction and Perception Gap Analysis

 Call Barge In

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