66155crm Strategy

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Customer RelationshipCustomer RelationshipManagementManagement

Module 3Module 3

Choosing CRM StrategyChoosing CRM Strategy


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CRM StrategyCRM Strategy

Strategy is a large scale plan for achievingStrategy is a large scale plan for achievinga goal.a goal.

Originated in large scale military combatOriginated in large scale military combatplanning.planning.

CRM Strategy is a large scale plan forCRM Strategy is a large scale plan for

achieving the goal of creating, maintainingachieving the goal of creating, maintainingand expanding mutually beneficialand expanding mutually beneficialcustomer relationships.customer relationships.


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TacticsTactics

Specific procedures and tools one uses toSpecific procedures and tools one uses toimplement strategy.implement strategy.

CRM tactics may include customerCRM tactics may include customerdatabase, e commerce, procedure fordatabase, e commerce, procedure forhandling unhappy customers, customerhandling unhappy customers, customer

satisfaction surveys.satisfaction surveys.


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Stages in the development of a Customer Relationship

The Pre-relationship Stage

The event that triggers a buyer to seek a new business partner.

The Early Stage

Experience is accumulated between the buyer and seller although a great

degree of uncertainty and distance exists.

The Development Stage

Increased levels of transactions lead to a higher degree of commitment and

the distance is reduced to a social exchange.

The Long-term StageCharacterised by the mutual importance to each other.

The Final Stage

The interaction between both the parties becomes institutionalized.


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ARelationship Life Cycle Model

High cooperation

Low competition

Low cooperation

High competition

Time

Pre-

relationship

stage

Development

stage

Maturity

stage

Decline

stage


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Managing Customer Relationships

Qualifying prospects for relationship building

Opportunities

for adding value

Potential profitability of customer

High

Low

Low High

Use a non

customized

approach

Seek better

opportunitieselsewhere

Build a strong

and lasting

relationship

Focus on

loyalty-buildingprogram


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CRM Strategy Starting PointCRM Strategy Starting Point

Establish Business Strategy.Establish Business Strategy.

Choose CRM Strategy DevelopmentTeam.Choose CRM Strategy DevelopmentTeam.

You need people who:You need people who:

Represent Front Line Customer Contact, BackRepresent Front Line Customer Contact, Backof the House support, Management.of the House support, Management.

Understand customers.Understand customers. Understand Large Business goals and vision.Understand Large Business goals and vision.

Are able to commit time and energy.Are able to commit time and energy.


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Silent BrainstormingSilent Brainstorming

A private and comfortable meeting locationA private and comfortable meeting location

Schedule the meetings in 4 hours blocks.Schedule the meetings in 4 hours blocks.

Open the meeting with an overview of availableOpen the meeting with an overview of availableinformation.information.

Identify potential strategies.Identify potential strategies.

Allow everybody to list everyway to improve customerAllow everybody to list everyway to improve customerrelationship.relationship.

Divide these activities into clusters.Divide these activities into clusters. Each of the activities are actually tactics for servingEach of the activities are actually tactics for serving

customer and the clusters are actually CRM Startegies.customer and the clusters are actually CRM Startegies.


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CRM Strategy SelectionCRM Strategy Selection

Purpose of this process is to narrow down onPurpose of this process is to narrow down onideas to choose the right strategy.ideas to choose the right strategy.

1.1. Create strategy selection criteria.Create strategy selection criteria.

2.2. Identify which level (1,2,3) of customerIdentify which level (1,2,3) of customerservice profile you want to increaseservice profile you want to increase

3.3. Identify 5Identify 5--6 most important criteria.6 most important criteria.4.4. Identify each strategy as per the criteria mix (Identify each strategy as per the criteria mix (

as in the following slide)as in the following slide)


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Sample Criteria MixSample Criteria MixCriteriaCriteria11

CriteriaCriteria22

CriteriaCriteria33

CriteriaCriteria44

CriteriaCriteria55

StrategyStrategy11

YY YY

StrategyStrategy22

YY

StrategStrategy 3y 3

YY YY YY YY YY

StrategyStrategy44

YY YY

StrategStrateg

y 5y 5YY YY YY YY


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Sample CRM StrategySample CRM Strategy

CRM Strategies of one of the Resort:CRM Strategies of one of the Resort:

We will create relationships by understanding the uniqueWe will create relationships by understanding the uniqueexpectations of each of our guests and equipping ourexpectations of each of our guests and equipping ourstaff to meet those expectations.staff to meet those expectations.

We will maintain relationships by constantly identifyingWe will maintain relationships by constantly identifyingopportunities to enhance our guests experience andopportunities to enhance our guests experience andfurther our mission , including partnering with localfurther our mission , including partnering with local

attractions.attractions. We will expand relationships by rewarding customersWe will expand relationships by rewarding customers

who help us grow our business by recommending ourwho help us grow our business by recommending ourresort to new customers and visiting us frequently.resort to new customers and visiting us frequently.


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Planning your CRM programmePlanning your CRM programme

ThereThere areare fewfew factorsfactors whichwhich wewe needneed toto evaluateevaluatebeforebefore wewe startstart aa newnew CRMCRM initiativeinitiative::


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66155crm Strategy