Applying CRM Strategies

CRM is an Evolutionary Process which Will Change Corporate Culture

Mar 17, 2009

The goal of CRM is to evolve from a marketing-oriented model based on a product-centric marketing structure, to one that deals with each customer individually.

This is a new way of thinking for many companies with thousands, even millions of customers. Managing customer relationships successfully means learning about the habits and needs of your customers, anticipating future buying patterns and finding new opportunities to add value to the relationship.

Customer Behavior Patterns

For example, in the financial sector, early beneficiaries of successful CRM strategies have been the banks. These organizations use data warehousing and data mining technologies to learn from the millions of transactions and interactions with their customers, and to anticipate their needs. The patterns of customer behavior and attitude derived from this information enable the banks to effectively segment customers on pre-determined criteria.

This knowledge assists financial institutions with CRM solutions in place to develop marketing programs that respond to each customer segment, support cross-selling and customer retention programs and enables the staff to understand how to maximize the value of each customer’s interaction.

Maximizing Individual Customer Experiences

How does an organization manage each customer relationship individually? From the corporate perspective, there are several fundamental changes in corporate functions which can be made on the way to a complete CRM solution.

Marketing departments need systems that allow employees to track, capture, and analyze the millions of customer activities, both interactions and transactions, over a long period of time. This knowledge enables the organization to create promotions, develop new products and services, and design communication programs that attract, reward and retain customers.

A fundamental concept behind a successful CRM strategy is that only through operational excellence and technology leadership can an organization predict and maximize the value of each customer relationship.

Successful CRM Projects

There have been many successful, effective CRM projects initiated and implemented over the past decade, and there are numerous examples of proven implementation processes and enabling technologies available to serve as models. Examining these successful models and learning from them can dramatically accelerate the transition. A well-conceived planning phase can anticipate and resolve many of the major hurdles that typically impede implementation. By examining case studies in CRM where proven methodologies and technologies are described, companies can realize early and tangible returns on CRM investments.

CRM Issues, Tactics and Methodologies

Companies assessing a CRM strategy or in the early stages of implementation, have many issues to consider. For example:

CRM Workshops

CRM workshops that bring together management groups to establish an in-depth understanding of the concepts, methods, and implications of the new strategies, as well as to convey a common viewpoint, can bring significant benefit to the development process. Senior management should play a prominent leadership role in this process by providing a supporting member to the CRM project team.

One very important step for senior management is to meet separately in the initial planning and objective-setting stages, with key managers and groups to establish an understanding of why the transition to CRM is needed, and of the implications and opportunities for each group’s area of responsibility. The leadership role remains critical throughout the implementation process, both to provide a compelling vision, driven by senior management, of where the company is going and to instill a sense of urgency and commitment to the changes that are needed.

Successful companies make relationships with customers something the customer values more than anything else they could receive from the competition. Companies can do this by examining customer experiences, not only with transactions and demographics, but also with every interaction, from web site visits, a phone call to your call centre, or a response from a direct mail campaign. Building the data and information technology architecture around the customer, will ensure they have a seamless and rewarding experience when doing business with your company.

The copyright of the article Applying CRM Strategies in Customer Relations is owned by Duane Sharp. Permission to republish Applying CRM Strategies in print or online must be granted by the author in writing.