Page 28 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Unit 2: Customer Value

2.1 Customer Relationship Management: Components and Notes
Architecture

The following stages strive to determine the main components of the various styles of Customer
Relationship Management:
(a) Functional
(b) Departmental
(c) Partial CRM

(d) Full CRM
(a) Functional CRM: This model of implementation is possible only with the large scale
organizations. This will be possible only with the organizations which will not be having
any departmental coordination. These modules will work only for the particular
departments. This can be called as specialized modules. Because of this department-wise
implementation the initial amount spent will always be higher than the Return on
Investment (ROI). This method will benefit only to the specific area not to the entire
organization. For example, we can consider the company like TATA which will be having
various types of business with variety of modules where the commonality will be very
less. In this kind of situation this type of CRM will come into the picture.
(b) Departmental: This model is possible for all size of organizations. There will be some
departments which will be common for one or more business modules. This intra
departmental coordination can be utilized and the modules can be implemented
accordingly. This will give success from bottom line to the middle level. That means these
modules can help the modules like call centres, SFA etc.
(c) Partial CRM: This module is possible only when the intra departmental coordination is
more among the departments. In this model two to three departments will be sharing a
common master database. As the modules are shared among the various business processes
the return on investment will be always 4 to 7 times higher than the initial investment.
For example the sales, marketing departments will always share a common database of
the products and the customers.
(d) Full CRM: This model is applicable with all levels of organizations. In this model the
entire organization will be using a same database. There will be a greater coordination
among the departments with this type of organization. As a whole the implementation is
done. Because of this common nature, this model provides a greater ROI which is 7 to 10
times greater than the initial investment.
As mentioned above each and every organization will have its own working method. By
identifying their level in any of the above mentioned models, the organizations can proceed
with the implementation. Customer intelligence is another name for customer facing system.
This creates the strong base of data about the customers that the organization is having with
itself. Any organization which is having good customer intelligence can create a best customer
data repository with which the retention of customer will be easy for the organization.
The customer intelligence is having above mentioned four steps that are to be followed. Each
and every step is interrelated with each other.

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