Retail financial services in all markets, including emerging markets, are undergoing major transformation, driven by change, deregulation and customer sophistication. Customer service and specifically relationship management, in particular, are crucial to attaining a sustainable competitive advantage in the marketplace.
The implementation of a one-to-one programme within an emerging economy is the focus of this paper, specifically in the financial services environment. The steps in the implementation of CRM as proposed by Peppers, Rogers and Dorf (1999b) are examined and the effect on customer service in an emerging market is investigated. The findings indicate that there are positive associations with these steps and customer
Changes in customer expectations can be identified throughout the world. Customer relationship management (CRM) strategies have become increasingly important worldwide due to these changes in Continue reading “Customer relationship management CRM : Implementing”
The meaning of those three letters, CRM, is hotly contested. For some, CRM is simply a bridge between marketing and IT: CRM is therefore an IT-enabled sales and service function. For others it’s little more than precisely targeted 1-to-1 communications.
But both of these views deny CRM its great potential contribution. Because CRM, at its most advanced, answers questions like ‘who should we serve?’ and ‘what should we serve to them?’ and ‘how should we serve them?’ it could, and often should, be positioned as the fundamental strategic process around which the business is organised. CRM decisions impact on marketing,
certainly, but also on operations, sales, customer service, HR, R&D and finance, as well as IT. CRM is fundamentally cross-functional, customer-focussed business strategy.
The CRM value chain
The CRM value chain (figure 1) is a proven model which businesses can follow when developing and implementing their CRM strategies. It has been five years in development and has been piloted in a number of business-to-business and business-to-consumer settings, with both large companies and SMEs: IT, software, telecoms, financial services, retail, media, Continue reading “The CRM Value Chain : Five steps to profitable relationships”
IMPLEMENTING A CRM STRATEGY
The success of any strategy is determined by the success with which it is implemented. This is also true in the case of CRM strategies. Implementing CRM require that the organisation and the associated business processes be in place in order to facilitate its success (Brunjes & Roderick, 2002).
The risk in implementing any CRM strategy is that the organisation is not ready to do so and relying on technology to implement the strategy (Brunjes & Roderick, 2002).
The role of customer service in CRM strategy
In order to implement a CRM strategy, a key dimension is the question of customer service and the way in which Continue reading “Implementing a customer relationship management programme in an emerging market”
In order to set up and manage your relationships with individual customers, you have to accomplish four basic things:
- Identify customers individually. Obviously, you can’t have a relationship with an audience or a population, but only with an individual. So before you can establish a relationship you must be capable of identifying customers, one customer at a time. You don’t have to have each customer’s name and address, but you need to know that the customer on the phone right now is the same one who was in the store yesterday, or on your Web site the day before that.
- Differentiate customers, one from another. Customers differ from each other, in terms of both their value to your business, and what they need from your business. What a customer needs from you will drive behaviors that you can observe. And behaviors will create (or destroy) value.
- Interact with customers. Almost by definition, a relationship depends on some interaction between two parties. You want those interactions to be cost-efficient, so drive more and more interactions into more efficient channels. But you also want them to be effective — that is, to tell you something about the customer’s needs or value, for instance, that you can’t learn simply by observing.
- Customize for customers. The “pay off step” for managing a customer relationship comes when your business behaves differently toward that customer. We call this “customization” even though we’re not necessarily talking about it in terms of literally customizing the product or service. But whenever I treat Customer A different from Customer B, based on what I think I know about their differences, I am “customizing” the customer’s treatment.
If you’ve ever studied Customer Relationship Management (“CRM”) academically, there’s a good chance that these four steps – identify, differentiate, interact, and customize – are already familiar to you. Martha Rogers and I wrote and edited the CRM textbook for graduate-level business students, Managing Customer Relationships: A Strategic Framework, based on this “I-D-I-C” methodology. And at our consulting firm, Peppers & Rogers Group, a large proportion of the work we do can be understood in terms of dissecting how these tasks function (or don’t function) for a client’s organization.
But a couple of other things are worth pointing out about the I-D-I-C model of relationship management. The first two tasks – identifying customers and differentiating them – are steps that a company can take in the privacy of its own IT department. Your company has a database of individual customer records, you track the transactions of individual customers in order to better understand both their value and their needs, and yet the customer herself never really has to participate in the process. The customer, in fact, may not even be aware of the data you are compiling.
By contrast, the third step – interaction – demands the customer’s personal attention and participation. You can’t interact unless there’s someone else on the other end of the interaction, right? And the fourth step, customizing your behavior in some way to a particular customer, also involves the individual customer directly, as the “recipient” of this behavior.
So you could think of the first two steps of the I-D-I-C model as “analytical” CRM, while the next two steps are “operational” CRM. Analytical CRM is required to develop better customer insight, while operational CRM is how you deliver a specific customer experience.
Think about the process of managing your own customers’ individual relationships with your firm – through your Web site, your loyalty program, your contact center, at the point of purchase, or in after-sale service. In upcoming posts I’m going to show how literally everything your company does, with respect to managing individual customer relationships, can be understood in terms of how these four I-D-I-C steps are executed.
– See more at: http://www.1to1media.com/speaking/blog/2014/01/building-customer-relationships-in-four-steps.html#sthash.0ZaemWnh.dpuf
Continue reading “The CRM : Building Customer Relationships in Four Steps”
In my last blog I gave you some tips on how to structure your workday (8 Ways CRM Software Can Help Reduce Cost for Your Business). These tips refer to what you as an individual could do. This time I will focus on organizational structure.
Whether you have chosen a CRM vendor or not, it is a good idea to prepare for the organizational challenges you may meet:
- What does it involve of resources?
- Do you need to make organizational changes?
- What are the goals or benefits you expect to get out of the CRM system?
- Do you want a cloud or a server solution?
When you implement a new IT system, the whole organization needs to be in sync. It has to be a combination of a set of official guidelines and personal involvement. A good project manager is essential and the way to success lies in good internal communication. A CRM system is not just technology; it is a strategy and a philosophy. Here are 7 tips of things to consider when implementing a CRM system:
1. Anchorage in the top management
It may sound obvious that a project that involvers all parts of an organization needs top management involvement, but in order to inspire and build credibility, top management is crucial. They drive the opinion and culture in Continue reading “7 Tips to a Successful Implementation of Your New CRM System”
This dissertation/thesis/research paper seeks to explore the impact that Customer Relationship Management (CRM) has on the retail business industry and how it relates to the key stakeholder in the relationship
This is a sample paper.
This paper seeks to explore the impact that Customer Relationship Management (CRM) has on the retail business industry and how it relates to the key stakeholder in the relationship; the customer. Another aspect covered by the paper is assessing the challenges faced by the industry, and how developments are being undertaken to overcome these.
The ability of customers to influence the policies and strategies of corporations make them the key link for the successful management of a business. It is important that an ideal solution be devised to counter any unexpected changes in trends and the environment.
The implementation of CRM has gained ground in recent years, with stronger competition driving the need to attract customers more vigorously. Continue reading “Customer Relationship Management (CRM) in Retail Industry”