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Unit 10: Delivering Customer Offer

5. Processes: Past efforts to re-engineer processes were primarily driven by the desire to Notes
improve the efficiency of an enterprise and reduce costs. The beneficiary was the enterprise,
not its customers. The rise in CRM has led to a focus on reworking key processes that touch
the customer and asking customers which processes matter to them. We call this customer
process re-engineering. Enterprises frequently do not realize that their functionally
fragmented processes often mean that the customer has a poor experience and receives
less than the expected value. Successful re-engineering should create processes that not
only meet customers’ expectations, but also support the customer value proposition,
provide competitive differentiation and contribute to the desired customer experience.
6. Information: Successful CRM requires a flow of customer information around the
organization and tight integration between operational and analytical systems. Having
the right information at the right time is fundamental to successful CRM strategies,
providing customer insight and allowing effective interaction across any channel.
Unfortunately, most enterprises’ CRM information capabilities are poor – the result of
numerous and fragmented departments, initiatives, databases and systems. Enterprises
that establish a business plan for sourcing, managing and leveraging their customer
information assets are more likely to achieve their CRM goals and objectives and gain a
competitive advantage.
7. Technology: For most technologists, CRM is all about technology. CRM technologies are
an essential enabler for any modern CRM business strategy, but they are just one piece of
the puzzle. Gartner has a wealth of ongoing research into CRM technology issues and
“Technology Decisions Are Key to Enabling CRM Strategies” (DF-14-8082) looks at the
key decisions that enterprises have to take in three areas: CRM applications, architectural
issues and integration. In many CRM projects, integration issues start as a relatively low
priority, and then rise in prominence (cost and time) as enterprises realize that true CRM
requires seamless customer-centric processes, supported by integrated technology across
the enterprise and its supply chain.
8. Metrics: The other seven building blocks depend on performance targets and metrics to
gauge their success, and enterprises must set measurable CRM objectives and monitor
CRM indicators to successfully turn customers into assets. Without performance
management, a CRM strategy and associated program is destined to fail. A framework for
measuring an enterprise’s success with CRM by creating a hierarchy of performance metrics
involves four levels, namely: corporate, customer strategic, operational and process, and
infrastructure input metrics. These metrics have an internal and an external focus and link
operations to strategy and corporate financial benefits. Each enterprise will have a unique
set of metrics applicable to their situation.

To achieve the long-term value of CRM, enterprises must understand that it is a strategy
involving the whole business, and thus should be approached at an enterprise level. CRM
initiatives need a framework to ensure that programs are approached on a strategic,
balanced and integrated basis.
Thus, customer relationship management (CRM) is a business strategy that maximizes
profitability, revenue and customer satisfaction by:
1. Organizing around customer segments
2. Fostering behaviour that satisfies customers

3. Implementing customer-centric processes

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