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    Models in E-Crm

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    Ayush Goel
    The document discusses three models for e-CRM: 1. The IDIC model focuses on identifying customers, differentiating them based on value and needs, interacting with them, and customizing products and communication. 2. The Quality Competitive Index model emphasizes customer management activities like acquisition, penetration and retention. It also addresses people, processes, customer experience and measurement. 3. The CRM Value Chain model creates long term relationships with strategically significant customers through targeted communication and ensuring the customer experience builds value. It avoids strategically insignificant customers.

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    Models in E-Crm

    Uploaded by

    Ayush Goel
    75 views10 pages
    The document discusses three models for e-CRM: 1. The IDIC model focuses on identifying customers, differentiating them based on value and needs, interacting with them, and customizing products and communication. 2. The Quality Competitive Index model emphasizes customer management activities like acquisition, penetration and retention. It also addresses people, processes, customer experience and measurement. 3. The CRM Value Chain model creates long term relationships with strategically significant customers through targeted communication and ensuring the customer experience builds value. It avoids strategically insignificant customers.

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    MODELS IN E-CRM

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    The document discusses three models for e-CRM: 1. The IDIC model focuses on identifying customers, differentiating them based on value and needs, interacting with them, and customizing products and communication. 2. The Quality Competitive Index model emphasizes customer management activities like acquisition, penetration and retention. It also addresses people, processes, customer experience and measurement. 3. The CRM Value Chain model creates long term relationships with strategically significant customers through targeted communication and ensuring the customer experience builds value. It avoids strategically insignificant customers.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    75 views10 pages

    Models in E-Crm

    Uploaded by

    Ayush Goel
    The document discusses three models for e-CRM: 1. The IDIC model focuses on identifying customers, differentiating them based on value and needs, interacting with them, and customizing products and communication. 2. The Quality Competitive Index model emphasizes customer management activities like acquisition, penetration and retention. It also addresses people, processes, customer experience and measurement. 3. The CRM Value Chain model creates long term relationships with strategically significant customers through targeted communication and ensuring the customer experience builds value. It avoids strategically insignificant customers.

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    © All Rights Reserved
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    MODELS IN E-CRM

    PRESENTED BY: ANURUPA GANGULY


    1. IDIC MODEL
    This model suggests that companies should take four actions in order to the building, keeping and
    retaining the long term one to one relationship with customers.

    1. Identify: Who is the actual customer and have deep knowledge of them. This will help to easily
    understand them and serve them profitably.
    2. Differentiate: On basis of value and need. Value is differentiating the customer to understand
    which customer is generating most value now and which offer most value for the future. Give
    more value to customer who are generating more value for the business. Need is differentiating
    customers as per need. Different customers have different need and serving them in profitable
    ways we need more knowledge about their need.
    3. Interaction: Emphasis should be given on interaction with customer to ensure that customer’s
    expectations are understood and their relationship with a brand. Interact with customers
    according to their need and value that they are providing. Interacting directly with customers
    makes them feel served, prioritized. This makes customers loyal and build long term
    relationships.
    4. Customize: Customize product as per values and needs of the customer. Customize offer and
    communication so that goal is met. Go back to previous steps to work out if everything has
    gone right.
    2. Quality Competitive Index (QCI) model:
    It is a type of customer management model. According to this model, a business needs to perform
    certain tasks that help in acquiring new customers and retain old customers (Starkey & Woodcock,
    2002). The model is very different from other CRM models as it focuses on customer ‘management’
    rather than relationship building. ‘Customer management’ means giving importance to impulse
    buyers.
    • They do not want a long-term association with the company but are nevertheless important for
    revenue generation. The QCI model helps to review the current practices and create a
    quantitative approach to improve customer management process.
    • The model is made up of eight elements:
    1. analysis and planning
    2. information technology
    3. proposition
    4. people and organization
    5. process management
    6. customer management activities
    7. customer experience
    8. measurement of effect
    • The core element of this model is its customer management activities, which include acquisition,
    penetration, and retention. The supporting elements are people and organization, while these are
    affected by customer experience and external environment.
    Analysis and planning: The process of customer management starts with an analysis of customer behaviour
    and planning to develop the value of the company. The business can then plan to design customer
    management activities for engagement. The analysis and planning are based on the REAP of customer
    management activities, which is Retention, Efficiency, Acquisition, and penetration.
    Proposition: The ‘analysis and planning’ is the base of customers and their needs, leading to effective
    planning. The next element of the QCI model is coming up with the ‘proposition’. The proposition includes
    processes that can attract new customers, which depends upon the evaluation of the needs of the
    customers in the previous step. The segmentation of customer needs to form the base for different
    propositions. This further helps to derive enhanced customer experience and engagement strategies.
    Information and technology (IT)
    • Information and technology is an enabler in managing customers as well as customer-related data.
    Technology helps deliver critical information related to the customers to the organization and vice-versa.
    Thus Information and Technology systems need to be updated constantly to effectively manage
    customers and people, as per the changing needs of both entities. This element includes important sub-
    processes such as:
    1. sourcing customer information,
    2. planning and analyzing information,
    3. management of quality and review of technology systems for replacement and renewal
    People and organization
    • A business cannot manage customers without a robust team of customer relationship executives.
    As per the QCI model, the business needs to develop and maintain a responsible team for:
    • managing customer requests,
    • feedback,
    • queries and concerns.
    • Also, businesses need to establish a system for role identification, task segregation, and
    conduction of gap analysis for training.
    Process management
    • Coordinating marketing, sales, and customer support are essential for customer management, as
    per the QCI model. According to this model, a consistent process which provides continuous
    management support to customers and identifies shortcomings is important. This is the
    importance of ‘process management’ element .
    CUSTOMER MANAGEMENT ACTIVITY
    This element of the QCI model has three sub-categories of activities, governed by efficiency in all:
    • Acquisition: It includes targeting of customers and getting to know their needs for developing
    products/ services. The execution of this activity involves effectively putting across the business’s
    propositions after identifying the customers and their needs.
    • Penetration: This sub-activity includes understanding the customers through the collection of
    information, which can be then processed to understand how to best create a valuable customer
    base. The activities involve simple messages to welcome customers to the organization, provide
    an understanding of the business activities and helping customers connect with the business
    goals.
    • Retention: This can be done through value development, as well as through win-back strategy.
    This strategy serves as a retention process and an acquisition process.
    MEASURING THE EFFECT
    This element involves the assessment of the process to ensure continuous improvement of the
    customer management process. The measurement also helps understand the level of performance
    of individuals and teams on their roles and creates benchmarking on customer management
    success.
    CUSTOMER EXPERIENCE

    • Addition of customer experience to the customer management mix provides an additional layer
    of measurement. It bridges gaps in customer perception and customer enhancement processes.
    • The QCI model provides a detailed process of how to establish a connection with customers,
    cordially interact with them, and customer management. The model also accepts the role of
    external environment in impacting customer experience and provides an understanding of how to
    counteract any negative aspects by making sure the foundation of the CRM processes.
    3. CRM VALUE CHAIN MODEL

    • CRM is a bridge between marketing and IT. CRM is therefore an IT enabled sales and service function.
    • It is a targeted 1-to-1 communication.
    • CRM value chain is an established model which businesses can easily follow when they are developing
    and implementing CRM strategies.
    • Piloted in number of businesses to consumer settings with both large companies and SMEs: IT,
    software, telecom, financial services, retail, media, manufacturing and construction.
    • This model is based on strong theoretical principles and practical requirements of business.
    • The ultimate process of CRM value chain process is to ensure that company builds long term manually
    valued relationships with its strategically significant customers.
    • Not all customers are strategically significant. Indeed some customers are simply too expensive to
    acquire and service.
    • They buy little and infrequently , they pay late or default. They make extraordinary demands on
    customer service and sales resource, they demand expensive, short run, customized output, and then
    they defect to competitors.
    • These are called strategically insignificant customers.

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