Page 333 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Customer Relationship Management

Notes The principal outcome of the D4 Company Analysis™ is the development of a tailored and
specific strategy that builds on the organisation’s existing CRM practices and position in the
marketplace. It allows the organization to prioritise the actions to be taken for placing customer
relationship management activities at the heart of the business.
One of the significant outcomes of the D4 Company Analysis™ is to reveal who or what is
driving the organisation’s current strategy or, in this case, holding the handle. In a company that
is placing CRM at the heart of their business, the handle of strategy should be in the hands of the
customer.
The objective of the audit is to direct the organization towards successfully managing integrated
processes that lead to the establishment of an ‘ongoing dialogue’ with their customers that
delivers ‘mutual value’ to both the customers and the company. Caselet (below) outlines an
example of the breadth of information that would come out of the application of the D4 Company
TM
Analysis .


Caselet Developing a CRM Strategy

he Board of Directors at a large fund management consultancy recognized that
customer retention could only be achieved as a consequence of a business-wide
Tcustomer relationship strategy that incorporated people, technology, data, and
processes. In 1999, they approached CRM (UK) Ltd to help assess their current methods of
managing customers and assist in designing a CRM strategy to integrate current business
initiatives and identify key points for the development of a customer retention strategy.
Following the audit process, CRM (UK) Ltd identified that despite a commitment to
achieving 95% customer retention, the organization lacked a consistent company-wide
CRM strategy. Three areas were highlighted for action: Customer Relationship Strategy
and Leadership were vague and inconsistent throughout the company. The executive had
set itself CRM targets; however, the means by which these targets are to be achieved, and
the dedication of appropriate resources to the CRM strategy, were not clear. The current
culture was that of a sales organization, e.g., information systems, staff remuneration
packages, etc. Recommendations enabling a move towards a more companywide customer-
centric culture were formulated incorporating the areas of HRM, IMS and Marketing.
Information contained in client databases was not being used to its full potential and the
client was recommended to develop a system to control and regularly maintain their
customer orientated data warehouse. Following the audit, the Marketing & Sales Director
iterated that the audit had given them “a clear idea of the areas where we need to focus our
implementation plan in order to develop a holistic approach to the good management of
our relationships with our clients”.

Source: http://ieeexplore.ieee.org/xpl/login.jsp?tp=&arnumber=5358767&url=http%3A%2F%2
Fieeexplore.ieee.org%2Fxpls%2Fabs_all.jsp%3Farnumber%3D5358767
12.3.2 What Value will CRM Deliver to the Business?

For many years, organizations have endeavoured to understand the customers that buy their
products. Despite this, many organizations fail to understand their customers at even the most
rudimentary level. Typically, an organization should be able to answer question such as:
 What product did they last buy?
 When did they last phone?

 How did they undertake their last transaction – Website? E-mail? Phone call? WAP?

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