CRM Models

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Customer Relationship Management Model defines framework to manage customer relationship through stages from acquisition till retention.
CRM Model lays down strategy to develop customer relationship by focusing on :-
Customer Satisfaction
Building Customer Loyalty
Enhancing Customer experience through customized product/ service
Providing competitive advantage
Establishing strong multi-channel communication network
CRM MODELS- IDIC Model, QCI Model, Value Chain Model, 5 Forces Model.
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1. DEVTECH FINANCE CUSTOMER RELATIONSHIP MANAGEMENT MODULE CRM MODELS

2. INTRODUCTION TO CRM MODELS Customer Relationship Management Model defines framework to manage customer relationship through stages from acquisition till retention. CRM Model lays down strategy to develop customer relationship by focusing on :- Customer Satisfaction Building Customer Loyalty Enhancing Customer experience through customized product/ service Providing competitive advantage Establishing strong multi-channel communication network

3. CRM MODELS

4. IDIC MODEL OF CRM Identify your customers as individuals and let them feel you know them Differentiate your customers by their value to the organization Differentiate your customers by their needs from the organization Interact with the customers according to their values and their needs Customize your products and services to customer’s need Information to the organization about the customers and their needs Value Sieve Information to customers, about your ability to cope with their needs

5. IDIC MODEL- IDENTIFY, DIFFERENTIATE, INTERACT & CUSTOMIZE The IDIC model was developed by Peppers and Rogers to categorize CRM implementation process into four stages – I - IDENTIFY , D - DIFFERENTIATE , I - INTERACT, C - CUSTOMIZE The first step is to identify your customer and collect quality data to create a customer knowledge database regarding their name, address, purchase history, preferences, point of contact etc. which can be used to generate useful insights in creating value for business. The second step is to differentiate customer and create segments on the basis of their lifetime purchase value from the business so that customized targeting could be done to suit each segment. Third step is to interact with your customers on the basis of segmented analysis done and offering various loyalty programs and membership, engagement activities, multi-channel communication to maintain involvement and continually gathering insights to improve product/ service offerings.

6. IDIC MODEL The last step is to customize the product/ services offered with the help of analysis done at each stages of identification, differentiation and interaction. Customization creates barrier for other competitors to capture market share. CUSTOMIZE Customizing product and services to create customer loyalty and equity. IDIC MODEL OF CRM

7. QCI MODEL- QUALITY COMPETITIVE INDEX External Environment Customer Experiences Analysis and Planning Customer propositions Customer Management Activity Measurement People and Organization Infrastructure Targeting Retention activity Delivering basics Value development Managing dissatisfaction Welcoming & getting to know Conversion Winback Customer Information Technology Support Process Management Customer

8. QC I MODEL – QUALITY COMPETITIVE INDEX This model shows a series of activities related to external environment, customer experience, people, organization and infrastructure which together helps in building the whole process of customer management activity. According to this model, external environment directly affects the customer experience and also affects the planning & analysis process of the organizations . C ustomer experience is affected by : customer proposition, customer management activity, and measurement where, customer proposition means something that a company offers to the customer as product/ service against the price, customer management activity is a process of capturing customers which start with targeting, conversation, selling and end with retaining or winning back the customers and measurement is about maintaining a follow up with the acquired results. Infrastructure deals with the organization in a sense of technology, customer information, and process management to act as a facilitator for crm implementation. E ach activity, people, organization, process, and technology have a dual effect and are inter-correlated with each other in the model.

9. CRM VALUE CHAIN MODEL Customer Portfolio Analysis Customer Intimacy Network Development Value Proposition Development Manage the Customer Lifecycle Leadership and Culture Data and Information Technology People Processes Primary Stages Supporting Conditions Customer Profitability

10. CRM VALUE CHAIN MODEL CRM Value Chain Model developed by Francis Buttle in the year 2004. It divides the whole customer management activity into two stages – primary and secondary or supporting. At primary stage the focus is on customer to develop strategy to maintain significantly long-term mutually profitable relationship. Primary stage has been divided into five parts starting right from customer portfolio analysis, it goes through customer intimacy, network development, value proposition development and ending at customer lifecycle management. Customer portfolio analysis is done to segment the customers according to their lifetime purchase value and identifying mixture of different customer base significant to business.

11. CRM VALUE CHAIN MODEL Customer intimacy is all about knowing you customer well so data collected at various stages are stored as knowledge database which is used for analysis purpose. Network development means the company must create a complete network of suppliers, manufacturers, employees, investors, technology, distributors and retailers for customers to serve profitably. At this stage of value proposition customers should be provided with products/ services that would enhance customer satisfaction and meet their expectation. Last stage is about managing the customer lifecycle and building customer equity which would serve as a goodwill for the business along with consistent revenue. At secondary stages there are supporting conditions in terms of robust technology, skilled people, efficient process and work-oriented culture integrated to ensure profitability of business and support effective customer relationship management.

12. PAYNE & FROW’S FIVE STEP PROCESS MODEL Business Strategy Customer Strategy Value Customer Receives (Co-creation) Value Organization Receives Multi Channel Communication Direct Marketing Mobile Commerce Electronic Media Call Centres Internet Shareholder Results Performance Monitoring Data Repository Strategy Development Process Value Creation Process Multi- Channel Integration Process Performance Assessment Process

13. PAYNE’S & FROW FIVE STEP PROCESS MODEL The five step process model was developed by Adrian Payne and Pennie Frow . This model outlines five processes : Strategy development, Value creation, Multichannel integration, Information management and Performance assessment. It emphasis on building collaborative business and customer strategy to create value in product/ services provided to customers. It also focuses on developing multichannel integrated communication network to make things more accessible and feasible for customers. Performance assessment is an important part of model to measure the success of business in meeting set standards and targets. Data repository combines of IT system, front and back office application, analytical tools and web robustness.

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