Customer Relationship Management

June 23, 2018 Management

This paper gives an outline of ICQ elements to assist a argument on how the model manages customer in a refection manner, by maintaining quality and efficiency, by simplicity of doing business, by problem solving, by appropriateness and in a affable ready for action setting. What is Customer Relation Management “Customer Relationship Management,(CRM), is a strategic process which relates to interaction between business and its consumer.

Its purpose is to maximize customer satisfaction and customer retention (instate online 2009). It is driven by three component quality, database marketing and IT. ” Quality competitiveness index (ICQ) Customer Management model “This model helps organization become more cost-effective through more effective and efficient customer management. The customer framework works with large organizations helping them in order to identify opportunities to increase profits and reduce cost in their customer management operations. “Customer relationship management is much more than simply the technology. This model can be used by companies to understand how well they are managing their customers (Foss and Stone (2001 [pick] 1 Elements of ICQ customer management model This model consist of nine elements and they are as follows: 1 . Analysis and planning 2. Propositions 3. Information and technology People and organizations 4. . Process management 6. Customer management activity 7.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Measuring the effect 8. Customer experience 9. Competition 1 Analysis and planning Effective CRM(Customer Relationship Management) begin from understanding the value, attitudes and behaviors of various customer and prospects. Once this has been achieved customers and prospects has to be segmented so that the planning activity can be as effective as is possible. The planning will focus on areas such as cost effective, retention, and acquisition of customers of company.

Analysis and planning covers ; Strategic input to CM planning ; Customer transaction analysis Lifestyle understanding ; profiling and external analysis ; Lifetime value monitoring ; Customer and prospect segmentation ; Competitor analysis ; Tacit knowledge management ; Contact and management planning 2 Propositions After segmentation and understood, the proposition to each segment needs to be defined and proper value-based offers planned. The propositions will be defined in terms of brand, price, and service and should derive the experience which the customer expects from dealing with the organizations.

The propositions must be communicated to both the customers and the people of organization responsible for delivering it to customers. Propositions covers ; Customer needs research ; Overall proposition development ; Segment proposition matching ; Service standards ; Proposition external communication ; Proposition internal communication 3 Information and technology IT provides the foundation for the whole model Data need to be collected, stored, analyzed and used in a way that provides information which is consistent with the CRM strategy, the way people work and the way customers want to access the company.

Technology enables organizations to acquire, analyze and use vast amounts of data involved in managing customers. It needs to deliver the right information to the relevant people at the right time so that they can achieve their role in managing customers. Technology covers ; Sourcing and understanding customer information ; Information planning and quality management ; Functions of existing systems ; Review of current systems ; Development of new systems 4 People and organizations An organization’s front-line staffs need to be recruited, trained, developed and motivated to deliver high standards of customer relations.

Key elements are an organizational structure that supports effective customer management, role identification, training requirements and resources, and employee satisfaction. People and organizations covers ; Organizational structure ; Role identification ; Competency definition and gap analysis ; Training requirements and resources ; Objective setting and monitoring ; Supplier selection and management 5 Process management Where customer contact can take place at several different points, process can be difficult to implement and manage.

Clear, consistent process for managing customer relations need to be developed and reviewed in the light of changing customer ARQ reorients. Process management covers ; Process identification and documentation ; Process communication ; Monitoring of process acceptability ; Process benchmarking ; Process improvement 6 Customer management activity Concerns the implementation Of the plans and processes to deliver the proposition(s) to target segment(s) and involve the following: 1 . Targeting customer and prospect groups with clear propositions. . Enquiry management: starts as soon as the individual expresses an interest ND continues through qualification, lead handling and outcome reporting. 3. Welcoming: covers new customers and those upgrading their relationship. It ranges from simple ‘thank you” to sophisticated contact strategies. 4. Getting to know: customers need to be persuaded to give information about themselves. The information needs to be stored, updated and used. Useful information includes attitude and satisfaction information and relationship “health checks”. 5.

Customer development: decisions need to be made regarding which customers to develop through higher level Of relationship management activity and which to maintain or drop. 6. Managing problems: this involves early problem identification, complaint handling and “root cause” analysis to spot general issues that have the potential to cause problems for many customers. 7. Win-back: activities include understanding reasons for loss, deciding which customers to try to win back, and developing win-back programmer that offer lost customers the chance to return and good reasons to do so.

Customer management activity covers ; Campaign planning ; Enquiry collection ; Lead distribution ; Result feedback and research ; Identification of new customers Initial welcoming activity ; Information collecting ; Recognizing key customers ; Segment development strategies ; Proposition tailoring ; Complaint handling 7 Measuring the effect Measuring performance against plans enables refinement of future plans to continually improve the CRM programmed. Measurement may cover, people, processes, campaigns, proposition delivery and channel performance.

Measuring the effect covers ; Strategic measures ; Key performance indicators ; Campaign measurement 8 Customer experience External measurement of customer experiences needs to take place and includes satisfaction tracking, loyalty analysis, and mystery shopping. Customer experience covers ; Satisfaction monitoring ; Benchmarking ; Loyalty analysis 9 Competition The strengths and weaknesses of competitors need to be monitored and the company’s performance on the above issues evaluated in the light of the competition. Source: Jobber and Lancaster (2003).

Selling and Sales Management. Prentice Hall Discussion Information and technology IT plays an key role in any organizations. In ICQ customer management model information technology is the base of the whole model. It collects data, stored he data and analyzes customer data to deliver the right information at the right time. For an example , Tests; is one Of the biggest KICK grocery retailers. Tests maintain its customer data through its club cards scheme. Data major contains name, address, contact information and their buying history.

Tests analyzes this buying history of customers and try to identify their buying behavior. After identifying its buying patterns Tests offers its customers what they want and suggest them about new product which matches from his/ her previous purchase history. Tests also saved the previous purchases of customer when they purchased online and help them when they purchase online by showing what they purchase last time in this way they try to save customer time and gain customer satisfaction. This information is also used in database marketing, telemarketing, demographic marketing and so on.

This information also used to offer value added product to the customer after identifying their wants. Like mobile phone operators analyses the user data and offer them a package as per their usage e. G. If a history of a person shows that he/ she used more text messages as compared to voice minutes hen they offer a package which includes more text messages then voice minutes, and they try to give best offer and try to make sure that customer get more by spending less and as a reward they try to gain customer loyalty and long term relationship.

Similarly Domino Pizza keeps the data of customers in the record and when the customers orders his all details are displayed including customer name address and what he ordered before by his phone number and they can sea the order history and they save the time of customer and their own by just confirming order to customer and telling the details of order to customer they already have in their record. For any organization people and staff are very important. These staff needs to be recruited through proper channel according to their ability and the job requirement.

After recruiting staffs need to be trained according to the organization structure and working environment, then set up their achievable target which must be monitored through continuous feedback and with the help of other performance measures. Most important thing in any organization is to motivate the staffs so that they can achieve their targets and after achieving their targets they should be rewarded as well this type of activity creates healthy competitive environment at work place.

Staffs need to be continuous updates with the latest products or services of the company they are offering this can be achieved through e-learning modules. Staffs need to be tested so that they work in right direction. E. G. Royal and sun Alliance is the bench mark in this sector they follow the SCAM rules. Conclusion CRM is all about maximizing customer satisfaction and customer preservation. It is driven by three components quality, database marketing and IT.. All nine element of ICQ model are equally significant and play their art in order to achieve company objective.

Out of nine elements two of them are “information and technology’ and “people and organizations”. Information and technology is a base of this model as database marketing is one of the driving gears of the customer relation management. Companies use technology for minimization of customer satisfaction and to educate and update their staffs. Use of technology can be seen in Elk’s big super market. Second element, people and organization, is a backbone of any company. Lets people need to be trained and motivated to achieve and maintain customer attestation.

x

Hi!
I'm Amanda

Would you like to get a custom essay? How about receiving a customized one?

Check it out