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customer relationship management - Coggle Diagram
customer relationship management
An approach companies adopt to manage interactions with their customers, vendors, team members, and other businesses in an efficient manner.
Helps companies to deliver cohesive services and support customers in an organized way to maximise profitability
includes relationships, sales, retention, customer insights, values, marketing, customer centric, interaction, strategies, and softwares
there are 3 pillars
pillar 1
create and deliver value to targeted customers
CRM is the core business strategy that integrates internal processes and functions, and external networks, to create and deliver value to targeted customers at a profit
pillar 2
acquisition and retention of customers
CRM focuses on both acquisition and retention of customers
pillar 3
information technology
It is grounded on high quality customer related data and enabled by information technology
origins of CRM
traditional business approaches are no longer applicable now. companies need to embrace the CRM principles to effectively meet the evolving needs of their customers
to remain competitive, companies have to understand customer's needs first and modify their products and services to cater to their unique needs
companies have to differentiate themselves by adopting a more proactive and holistic approach to manage the entire customer journey
benefits of CRM
companies can apply CRM principles to successfully offer the most appropriate products and services to the most appropriate people at the most appropriate time through the most appropriate means
3 perspectives of CRM
strategic CRM
the aim of Strategic CRM is to enhance the knowledge about customers and use this knowledge to improve and customise the interactions with customers to maintain a long-term relationship with them
operational CRM
sales force automation (SFA)
applies technology to the selling processes
service automation (SA)
applies technology to manage support services
marketing automation (MA)
applies technology to the marketing processes
Analytical CRM
focuses on the intelligent mining of customer related data for strategic or tactical purposes
determines patterns and predictions in customer data which are gathered from different operational CRM systems
Francis BUTTle's CRM model
primary stages
customer portfolio analysis
Identify valuable and potential customers
customer intimacy
Adopt multi-channel communication to engage in meaningful
conversations with customers
network development
The CRM processes must be aligned across various departments of
the organisation
value proposition development
A proposal that is of value in the customer’s eyes
managing customer lifecycle
Embrace strategies and tools to acquire, develop and retain
customers
supporting conditions
leadership and culture
Provides direction and prioritise CRM within the organisation
data and information technology
Data provides all the insights that are essential for CRM
people
Employees need to be trained to deal with customers to ensure a
positive interaction
processes
All processes need to be in sync for CRM to be implemented fully