Page 289 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Customer Relationship Management

Notes 4. How much of the measurement framework needs to measure past activity or predict
future events?
Consider the technology implications:

1. What technical infrastructure changes are needed to support the measurement framework?
2. Can the data needed be collected and combined within this infrastructure?
3. What is the ongoing cost of measurement and data collection?
4. What are the sampling and refresh rates that will be needed to support the measurement
framework?
5. What are the core analytic techniques and technologies to support the data analysis needed?
6. What are the technical needs to continually collect strategic and qualitative data as opposed
to conventional CRM operational data?
Consider the organizational implications:
1. What skills sets are needed to support the measurement framework?

2. How do motivation and incentive approaches in the company need to be altered to
encourage successful measurement?
3. Can the company’s decision-making abilities absorb and use the measurement framework?

4. Does the company have flexible communication and collaboration tools and policies that
let people within the company interact with each other concerning measurement data?
5. Can the customer decision-making capabilities of the company be measured and
monitored so that the health of decision-making capabilities can be assessed?
6. Can feedback from the decision-making process inform and alter the measurement
framework?
With these considerations in mind, a CRM measurement framework deployment plan can be
formulated. In most cases, deployment of new measurement approaches is evolutionary. With
the inherent risks in disrupting a customer base and employees that serve the customers within
a company, companies frequently choose to limit deployment along some axis. Typically
companies try to control the field breadth in the following ways:
Product A measurement approach is rolled out for all customers for one specific product or
deployment service.
Segment A measurement approach is rolled out for one customer segment (or sub-segment) for
deployment all products or services.
Narrow A measurement approach is rolled out for one customer segment (or sub-segment) for
deployment one product or service.

Within each deployment model, companies can control scope further by restricting the remaining
two vectors (depth and tractability):
1. Controlling the field depth by limiting the how detailed the measurement approach is.
2. Controlling the field tractability by limiting causal research, data collection and analysis.
In practice, probably any sequence of deployment is possible. Since it is most unlikely that
companies, especially large ones, can transform themselves completely, iterative implementations
of new CRM strategies and measurement frameworks will be needed. In fact, for many companies,
“adapt or perish” is the directive. Changing market conditions and customer behaviour and the
proprietary, non-reproducible relationship companies and brands can have with their customers
practically insists on iteratively implemented, adaptable CRM measurement frameworks.

284 LOVELY PROFESSIONAL UNIVERSITY