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Developing a CRM Strategy

This is common question, and it does not help when answers differ. There is a lot of confusion between a CRM business strategy and a CRM implementation strategy or plan. A CRM strategy is the blueprint for how you are going to achieve the ideal customer base. To do this means revisiting the marketing strategy. What products/services are you going to sell, to whom, at what price and through what channels. In a CRM strategy, this is extended to how is the enterprise going to build customer loyalty once it has got its target customer. How is it going to | Jennifer Kirby Developing a CRM Strategy 56 Top Gallant Road P. O. Box 10212 Stamford, CT 06904-2212 Copyright © 2001 Entire contents © 2001 by Gartner, Inc. All rights reserved. Reproduction of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice. Developing a CRM Strategy European Symposium/ITxpo Jennifer Kirby Palais des Festivals Cannes, France Key Issues What is a customer relationship management (CRM) strategy? How does a CRM strategy fit in with other business strategies? Only 10 percent to 15 percent of companies know the value of their customer base — yet, this is an important intangible asset and drives the detailed tactics of the CRM strategy. The benefits of CRM come through increased service and communication; to build real loyalty, how is this managed effectively? Key Issues Source: Gartner Research What Is a CRM Strategy? “It boldly states the ideal customer base and how an organization intends to get and keep it. I’ve never yet seen one that does this to any depth.” — CRM Consultant “ It’s the decision about which customers are to be managed, via which channels for which products and services: It means revisiting the marketing strategy.” — CRM Guru “A CRM strategy is not an infrastructure road map.” — CRM Program Manager “We need to understand what customers we have, and who we want, then we can put in place a strategy for developing the value of each segment” — CEO What is a CRM strategy? This is common question, and it does not . | Jennifer Kirby Developing a CRM Strategy 56 Top Gallant Road P. O. Box 10212 Stamford, CT 06904-2212 Copyright © 2001 Entire contents © 2001 by Gartner, Inc. All rights reserved. Reproduction of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice. Developing a CRM Strategy European Symposium/ITxpo Jennifer Kirby Palais des Festivals Cannes, France Key Issues What is a customer relationship management (CRM) strategy? How does a CRM strategy fit in with other business .