Discuss the framework of the five key processes involved in a CRM strategy

Question

What will be an ideal response?

Answer 1

The first key process is strategy development that involves the assessment of business strategy. This is typically the responsibility of top management. Once developed, it should guide the development of customer strategy, including the choice of target segments and tiers, the design of loyalty bonds, and churn management. Value creation, the second process, translates the business and customer strategies into specific propositions. The value to customers includes all benefits delivered through tier rewards, loyalty rewards, and customization. Value to the firm should include reduced customer acquisition, retention costs, and increased profit. Multichannel integration is the third process. This simply refers to the need to interact consistently across different interfaces (e.g. face-to-face and online). The fourth process is information management. A firm's ability to maintain multichannel consistency and provide value creation, etc. rests on its management of information. Customer information (demographics, etc.) and churn information (turnover) are key aspects of information of which firms need to be aware. Finally, performance assessment allows a firm to know how well it is doing on creating value, achieving market and service delivery performance objectives, and its CRM process performance overall.