- Customer database requirements
- Analysis
- Communication
- Service
- Measurement
We can probably all think of terms such as 121 marketing and customer-centric management. The labels are many and various but they tend to originate from 'Customer Relationship Management' or CRM. Despite the different titles, CRM has one clear objective: to build profitability through long-term customer loyalty.
Should we care about CRM? Yes - because it's a given that products and services are of the highest quality. Customers expect the best, and if one business doesn't meet those requirements, switching to another is just a click away. It's vital for companies to ensure that their clients feel they are valued, so the difference must be made by developing relationships with them.
Does CRM really make a difference? There are many stories about project failures, and a common theme is that technology has often run ahead of other components required to deliver telling customer management. Successful implementations exhibit four key areas:
The balance might differ between companies, but the best application occurs where each component has been thoroughly reviewed and integrated into the overall pattern.
Even if the mix is carefully constructed, a business must know that the overall approach is working. We emphasise 3 broad measures to check progress:
| Income | Sales revenue reporting - new business, cross-sell, up-sell |
| Efficiency | Return on marketing and customer service spend |
| Goodwill | Service standards, complaints, customer retention, advocacy |
There are overlaps between the three measures, demonstrating the importance of monitoring each alongside the other in a CRM initiative.
So, what are the practical developments that lead to greater income and cost control? Here's a snapshot:
| Customer strategy |
| High-level commitment |
| Planning |
| Communication and leadership |
| Organisation |
| People organised around strategy, processes & technology, supported by training |
| Access to information at customer touch-points, supporting service commitments |
| Monitoring & managing all CRM processes |
| Processes |
| Collection & application of customer information (profile, transactions, contact) |
| Communicating offers to most receptive audience |
| Using most efficient communication channels |
| Accurate campaign & client coding |
| Relevant tracking of marketing results, service & customer feedback |
| Technology |
Investment and support for: |
Where the balance is found, attention to the right customers with the right offers, at the right time, in the right place and with the right service will give them every reason to stay with your business, generating enhanced income and greater efficiency.
Simon Trevor, Ross Macleod
Simon Trevor and Ross Macleod are partners in Affinityworks, a consultancy specialising in strategic CRM development.