Project Description 1 A) describes the four models of Customer Relationship Mana
ID: 391340 • Letter: P
Question
Project Description 1
A) describes the four models of Customer Relationship Management. Explain each of the four models in detail. " the four models of Customer Relationship Management in the attached picture"
*You MUST provide the following:
1- The name of the model
2- Definition of the model
3- Explanation of how the model is used to build customer relationships
B) Next, research a company known for its dedication to strong customer relationships. Describe the company that you researched. Apply one of the four models to this company with an explanation of how the company uses this model to improve customer relationships.
Models of CRM A number of comprehensive CRM models have been developed. We introduce four of them here. The IDIC model The IDIC model was developed by Don Peppers and Martha Rogers, of the Peppers & Rogers Group, and has featured in a number of their books 20 The IDIC model suggests that companies should take four actions in order to build closer one-to-one relationships with customers: . Identify who your customers are and build a deep understanding of them. Differentiate your customers to identify which customers have most value now and which offer most for the future. · Interact with customers to ensure that you understand customer expectations and their relationships with other suppliers or rands. Customize the offer and communications to ensure that the expectations of customers are met. The CRM Value Chain Primary Portfoli stages Customer Customer Development Network Value Manage Proposition The Intimacy( Analysis (SCOPE)Development Customer Lifecycle Leadership and culture Data and information technology People Processes Supporting conditions Figure 1.1 The CRM Value Chain Francis Buttle's model, shown in Figure 1.1, consists of five primary stages and four supporting conditions leading towards the end goal of enhanced customer profitability2 The primary stages of customer portfolio analysis, customer intimacy, network development, value proposition development and managing the customer lifecycle are sequenced to ensure that a company, with the support of its network of suppliers, partners and employees, creates and delivers value propositions that acquire and retain profitable customers. The supporting conditions of leaders p and ulture, data an T people and processes enable the CRM strategy to function effectively and efficiently.Explanation / Answer
IDIC Model- This model tells that organizations should consider the following 4 actions so as to build, keep and retain a long-term customer relationship:
Identify- Organizations must identify their true customers as well they should have knowledge and understanding of their customers. The more an organization knows about its customers the better it could serve them.
Differentiate- Organizations should differentiate their customer based on value and need. Customers who generate more value should be valued more. Likewise, customers with different needs should be served differently.
Interact- Organizations must make sure fruitful interactions happen with their customers so that customer expectations are fully understood. Interactions also make customers feel the organizations are concerned about them and would definitely serve them. Such interaction would ultimately result in loyal customers.
Customize: Organizations need to customize their product for different customers based on their value and needs. For example, a tech-savvy customer versus a non-tech savvy customer would have different needs when they require a particular tech product.
CRM Value Chain Model: This model categories two stages viz Primary stage and Support stage, to develop a relationship with a customer.
The primary stage includes Customer portfolio analysis, Customer intimacy, Network development, Value proposition development and Managing customer lifecycle. These stages help the organizations to identify the customer, know his habits, develop a relationship and accordingly provide services to satisfy the customer.
Support stage includes Leadership and culture, Data and Technology, people and processes. Leadership in any organizations decides the path the organization follows and when there is a strong push for implementation of CRM from leadership, it becomes that easier to actually implement CRM in the organization. Similarly, an organization with a customer-centric culture would be more successful in implementing CRM.
Employees, ie People who interact with a customer are also very important in a successful implementation of CRM. The way they interact with people forms an important part of CRM. Also, the organization's processes form a critical part of CRM. Processes should be developed so as to facilitate effective implementation of CRM.
Data and Technology play a big role in CRM as they provide all insights, which could be monitored and analyzed for better CRM implementation.
Payne and Frow 5 process model: This model tells that CRM's purpose is to acquire and retain customers through developing and maintaining relationships with valuable customers. The model divides this concept into 5 processes of Strategy development(Making a strategy for customer relationship building), Value Creation(Creating value for the customer), Multichannel Integration(Integrating processes and systems towards developing customer relationship), Performance enhancement(Taking measures for improving performance) and Data Repository(To maintain customer data and accordingly analyse and monitor it).
Gartner Competency Model: As per this model, an organization should focus on following 8 factors for successful CRM implementation: Vision(Leadership's role in CRM implementation), Strategies(Organizations objectives and processes towards customer acquisition and CRM implementation), Valued Customer experience(Having value propositions for the customer), Organizational Collaboration(Entire organization's sync towards delivering the best serives to the customer), Processes(Managing customer lifecycle and processs linked to analysing, planning and management of knowledge), Information(Collection of quality data for decision making), Technology(Making the best use of Technology to effectively implement CRM), and Metrics(Tracking both internal as well as external measures of CRM).
Hard Rock Cafe, Singapore uses IDIC model in the following way:
Identify- The staff of the cafe is trained to remember customer faces and their habits. Whenever a customer comes back the staff is able to recognize him/her and serve them as per their needs which the staff knows in advance. The same waiters would serve the customers so as to develop a bond with them.
Differentiate- The cafe differentiates customers into 3 categories: Customers coming with family, Customers coming with friends, and Customers coming to watch live performances. Generally, the second and third category customers spend more on their visit and the cafe accordingly differentiate them.
Interact: The cafe regularly interacts with customers by welcoming them, bidding them farewell, having friendly communication with them, by not keeping customers waiting or wanting anything, through social media, through feedback forms etc.
Customize: The cafe is open to various kinds of customization so as to please customers while not making losses. Such customizations are made on food, drinks as per customer requirement or the cafe's requirement with the goal of making customers happy.
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