Anna Smyshlyaeva «Strategic aspects of CRM»

Congratulation! You have already made the first step to transformation of your business and learned about CRM. Maybe you have even decided to implement this approach and feel yourself rather inspired as you find that CRM is a breath of fresh air in searching opportunities to increase the margin and reduce costs. Anyway, there are plenty of questions left: what you should start from, how to align CRM-strategy with you marketing strategy and different kinds of business processes and so on. I hope this article will give you a lot to think about. 

According to recent study by Deloitte [1], CRM is still crucial topic for 92% of companies which highlight CRM as a key priority of enabling their business strategy, but despite of this fact, CRM is still considered as a technology-focused topic, ignoring the effects of other perspectives on success. To avoid mistakes of losing opportunities researches advise to create a chain consisted of following progressive steps [1]:

  • Define CRM value drivers and hurdles
  • Establish a consistent method of measurement for individual customer value and allocate resources for relationship building accordingly with focus on high value customers or potentials
  • Align the operating model with CJs (Сustomer Journeys)
  • Integrate legal knowledge into day-to-day operations to leverage the potential of CRM to the fullest degree, while ensuring compliance with authorities and regulations
  • Set up a proper measurement system for CRM-performance.

In research literature we can find that an important goal in Strategic CRM is to align the broader business strategy with customer strategy [2]. First of all, you should understand business strategy issues, such as corporate vision and industry and competitor profiles.  The managerial discipline of customer portfolio analysis can help companies to divide their current and potential customer base into segments that can then be used for setting up specific relationship management strategies. 

So, wish you good luck in implementing CRM and increasing your margin! Keep in touch with this portal where you can find more articles regarding CRM. 


Sources:

[1] Digital CRM 2.0. Building customer relationships in the digital landscape//Deloitte Digital Issue 09/2019, pp. 2-13 URL: https://www2.deloitte.com/content/dam/Deloitte/de/Documents/strategy/Deloitte_Digital_Digital_CRM_Study_2.0_2019.pdf

[2] Iriana, Reiny and Buttle, Francis(2007) ‘Strategic, Operational, and Analytical Customer Relationship Management’, Journal of Relationship Marketing, 5: 4, 23 — 42