Page 253 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Customer Relationship Management

Notes acquisition. Government and non-profit organizations tend to care most about customer
satisfaction.
Know Thyself: Start by answering these questions:

1. What are your enterprise’s goals and imperatives?
2. What should be achieved with a CRM initiative?
3. What business units will be affected?
4. What’s the condition of the IT infrastructure?

5. What needs to be upgraded, integrated?
Transform your Customer Base into an Asset: Be customer-centric. Focus objectives on your
customer life-cycle, which then mirror your product/service life-cycle. This means:

1. Analyze your customers. Look for ways that customer value is lost or unexploited. When
you’ve spotted where action is required, you can set metrics and monitor them.
2. Jibe CRM and corporate strategies. CRM strategy cannot stand alone; it must be derived
from corporate goals and imperatives, and it must be linked to other operational strategies.
3. Keep it flexible. In a challenging, competitive environment unpredictably impacted by
discontinuous change, CRM strategy needs to be dynamic and timely, adapting operational
efforts and corporate direction to market conditions. Thus, successful CRM strategy evolves
in an iterative process that takes advantage of customer and operational feedback to refine
objectives, tactics and processes.
Build a Repeatable, Continuously Improving Process: The goal is to efficiently utilize all your
organization’s resources to present one friendly, consistent face to customers. Customers should
get the same information about your company from any channel—from website to call centre to
sales force to marketing brochure.

Did u know? Companies that want to lock in customer loyalty and maximize profitability
need to employ four CRM tactics:

1. build a customer growth strategy upon a CRM foundation of strategic intent and
cost management;
2. avoid the CRM whipsaw effect;

3. don’t buy into the technology silver bullet; and
4. measure satisfaction with CRM.
These tactics will ensure that CRM programs can successfully adapt to the pending changes
in the economy.
Build a Customer Growth Strategy

Businesses must build top-line growth strategies upon the foundation of their CRM programs
by ensuring that strategic intent and cost management measures are institutionalized. Many
companies have not determined strategic intent or have not focused on developing clear metrics
to measure performance. Yet many have done some cost cutting within customer-facing functions
and lowered their cost-to-serve just to reduce the overall cost of sales. These cost-structure
changes should be modified to invest in these fields of CRM so that growth strategies gain some

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