A Strategic Framework for Customer Relationship Management
A Strategic Framework for Customer Relationship Management
Introduction:
This article explores the plethora of literature available on CRM and relationship marketing and emphasizes the need for a single, process-based framework that helps in making a comprehensive CRM strategy followed by its successful implementation. The objective is to highlight CRM’s role in enhancing customer value and, in turn the shareholder value. Various CRM and marketing experts, who provide their views in the article, emphasize the need for a cross-functional, process-oriented approach which identifies three alternative perspectives of CRM within a holistic organizational context. They try to identify five key cross-functional CRM processes starting from a strategy development process, followed by value creation process, multichannel integration process, an information management process, and in the end performance assessment process. Based on these 5 pillars, they put forward a new conceptual framework specifying the roles and functions associated with each element in the framework.
Summary:
CRM is a strategic approach that is concerned with creating improved shareholder value through the development of appropriate relationships with key customers and customer segments. There is a need to develop relationship marketing strategies and IT architecture to create profitable, long-term relationships with customers and other key stakeholders. The article is organized mainly in three parts. Firstly, it explores the three alternative perspectives of CRM. Secondly, it considers the need for a cross-functional process-based approach to CRM where the strategists develop criteria for process selection and identify the five key CRM processes. Next, they propose a strategic conceptual framework that is constructed of these five processes followed by the examination
Introduction:
This article explores the plethora of literature available on CRM and relationship marketing and emphasizes the need for a single, process-based framework that helps in making a comprehensive CRM strategy followed by its successful implementation. The objective is to highlight CRM’s role in enhancing customer value and, in turn the shareholder value. Various CRM and marketing experts, who provide their views in the article, emphasize the need for a cross-functional, process-oriented approach which identifies three alternative perspectives of CRM within a holistic organizational context. They try to identify five key cross-functional CRM processes starting from a strategy development process, followed by value creation process, multichannel integration process, an information management process, and in the end performance assessment process. Based on these 5 pillars, they put forward a new conceptual framework specifying the roles and functions associated with each element in the framework.
Summary:
CRM is a strategic approach that is concerned with creating improved shareholder value through the development of appropriate relationships with key customers and customer segments. There is a need to develop relationship marketing strategies and IT architecture to create profitable, long-term relationships with customers and other key stakeholders. The article is organized mainly in three parts. Firstly, it explores the three alternative perspectives of CRM. Secondly, it considers the need for a cross-functional process-based approach to CRM where the strategists develop criteria for process selection and identify the five key CRM processes. Next, they propose a strategic conceptual framework that is constructed of these five processes followed by the examination