Chapter 5:Quantifying the Impact

How much difference does good CRM make?

It depends on

CRM Customers’ reaction toCRM initiatives

The effect of good CRM can be identified by research

Good CRM

A positive outcome leads to an improved CRM

Well-handled customer complains may reinforce purchasing behavior

Satisfaction leads to recommendation to others

Satisfaction AFTER good problem-resolution may lead to stronger recommendations

Competitive SuperiorityAlternative Sales ChannelsBarriers to Market EntryNew Products and ServicesQuantifying CRM

APPLICATIONOF CRM

COSTOF SALES

REVENUE &CUSTOMER

SATISFACTION

Measure of your improved

CRM

Some customers will resist being

managed over the phone, but some will welcome it

Changes in CRM

Not necessarily revolutionary

Can be as simple as more training or shuffling of workstations and deliverables

Chapter 6: Identifying Customers’ Relationship Needs

RELATIONSHIP

PERFORMANCE

REQUIREMENTSCOMPETITIVENESS

Researching Competitive Requirements

Distinguish between

What CRM competitors

are deliveringWhat customers

perceive them to be delivering

General perceptions

Wants

Expectations

Define:

Relationship Performance Requirements

CRM policies cannot be

completely tailored to the needs of individual customers

Making Sense of Customer Data

It is HARDto meet all yourcustomers’ needsall the time

COMPETITIVEADVANTAGE

COMPETITIVESURVIVAL

Chapter 7:The Role of Market

Research

“If you can’t measure it,you can’t manage it”

Desk researchQualitative groupsQuantitative researchWeb and e-mail questionnairesTelephone questionnairesMystery shopping

RESEARCHTECHNIQUES

Competitive researchInternal auditUser groupsCustomer feedbackStaff research

RESEARCHTECHNIQUES

Chapter 8:Customer Retention and Loyalty

Managing Loyalty

Not only managing behavior,

but also managing a state of mind

“I trust you more than I trust your competitors”

“I understand you better than

I understand your competitors”

“You understand me better than your

competitors”

1. WELCOME CYCLE

2. UP-SELLING

3. CROSS-SELLING

4. RENEWAL

5. LAPSED CUSTOMERS

6. INACTIVE CUSTOMERS

Relationship Planning