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HANDBOOK OF CRM: Achieving Excellence in Customer Management Part 2

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Chapter 2. The strategy development process. The strategic framework for CRM Strategy development process: Value creation process: Value customer receives • Value proposition • Value assessment Customer segment lifetime value analysis Multi-channel integration process | Chapter 2 The strategy development process The strategic framework for CRM Strategy development process Performance assessment process Business strategy Business vision Industry and competitive characteristics Customer strategy Customer choice and customer characteristics Segment granularity Value creation process Value customer receives Value proposition Value assessment Value organization receives Acquisition economics Retention economics Multi-channel integration process Sales force Outlets Telephony Direct marketing Electronic commerce Mobile commerce Shareholder results Employee value Customer value Shareholder value Cost reduction Performance monitoring Standards Satisfaction measurement Results and KPIs ft ft IT systems Data repository Analysis Front-office Back-office tools applications applications ft 0 Information management process The strategy development process is deservedly the first process to be considered in the CRM Strategic Framework. It not only shapes the nature of the other four key CRM processes but more importantly it defines the overall objectives and parameters for the organization s CRM activities. As highlighted in the figure above the 40 Handbook of CRM Achieving Excellence in Customer Management strategy development process involves determining the business strategy and the customer strategy and ensuring that they are integrated. There are numerous definitions of strategy but the one by management consultants Richard Norman and Rafael Ramirez best captures the concept of strategy in the context of CRM. It is one that highlights the criticality of customer relationships. Strategy is the art of creating value. It provides the intellectual frameworks conceptual models and governing ideas that allow a company s managers to identify opportunities for bringing value to customers and for delivering that value at a profit. In this respect strategy is the way a company defines its business and links together the only two resources that really