Presentation on
Customer
Relationship
Management
Submit By: Mohammad Al Mamun Submit to: Md. Zaber Hossain
Program: EMBA Associate Professor
Id:0802410204083303 Bangaladesh Army University Science and
Technology.
Model Of CRM
1. The IDIC (Identify, Differentiate, Interact, and Customize) model
The IDIC model was developed by Peppers and Rogers, the consultancy
firm, and has featured in a number of their books.
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 brands
● customize the offer and communications to ensure that the
expectations of customers are met.
Gartner’s CRM Model
Gartner’s CRM Model
There are eight building blocks in Gartner’s CRM Model:
1. CRM Vision: It provides an idea to the company about what an ideal CRM focused enterprise
should look like while aligning goals with the company growth.
2. CRM Strategy: This block emphasizes on creating plans and strategies that are concerned
with customer management, segmentation, and value propositions by taking into account the
information of the customers.
3. Customer Experience: In order to make changes that will have a positive effect on customers
and enhance the company's brand image, customer feedback should be regularly gathered and
evaluated.
4. Organizational Collaboration: The whole organization including staff and partners needs to
be on the same page and be familiar with how the organization is dealing with customer
management
Gartner’s CRM Model
5. CRM Processes: It aims at figuring out which processes are best from for
the customers on the basis of their feedbacks.
6. CRM Information: The company obtains, stores, investigates the valuable
information obtained from the customers and fruitful decisions are taken.
7. CRM Technology: Usage of better technology in order to effectively solve
large numbers of problems in a customer friendly way is discussed in this block.
8. CRM Metrics: Metrics is used in order to measure the performance of the
processes implemented for customer management.
What is a relationship?
Relationship involves interaction over time.
“A relationship is composed of a series of interactive episodes between
dyadic parties over time.”
This also implies some type of affective connection, attachment or bond.
a state of independence to dependence or interdependence.
What are the five general phases through
which customer–supplier relationships can
evolve?
1. Awareness: Awareness is when each party comes to the attention of the
other as a possible exchange partner
2. Exploration: Exploration is the period of investigation and testing
during which the parties explore each others ’ capabilities and
performance. The exploration phase is thought to comprise five
subprocesses: attraction, communication and bargaining, development and
exercise of power, development of norms, and development of expectations.
3. Expansion: Expansion is the phase in which there is increasing
interdependence. More transactions take place and trust begins to
develop.
Five general phases
4. Commitment: The commitment phase is characterized by increased
adaptation and mutually understood roles and goals.
5. Dissolution: Termination of relationship.
Benefits of customer lifetime
value
Customer lifetime value is an important metric for a
company to decide how much it should spend to acquire
new customers and how much it can expect from
customers in terms of repeat business. It may not sound
very important but keeping a track of it can be used as a
comparison with competitors. Customer lifetime value
gives an indication of what the company is doing right,
how much the audience is able to resonate and how
much the customers are liking the products and services
offered. When customer lifetime value increases, it
indicates that the company is making a better impression
on its customers.
Benefits of customer lifetime
value
Revenues grow over time as customers buy more.
Cost-to-serve is lower for existing customers, because both supplier
and customer understand each other.
Referrals are generated by existing, satisfied customers through
their unpaid advocacy.
Higher prices are paid by existing customers than those paid by
new customers. This is partly because they are not offered the
discounts that are often employed to win new customers, and partly
because they are less sensitive to price offers from other potential
suppliers because they are satisfied with their experience.
Thanks
Question??
