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Crm Working Model
1. Working Model to Assist in the
Strategic Design of Customer
Relationship Management
Helena Durán L.
MBA Catholic University of Louvain
CRM Independent Consultant
Large experience in customer management at the automotive sector (Ford,
Subaru, Kia) and at the telecommunications sector(Bellsouth S.A.; Telefónica
Movistar)
3. Summarized Cycle of the Commercial Relationship with
Customers
Sales Ideal Scenario
Experience
Experience Experience
with the with the
brand product/
service
Switch
Experience
with the
brand Sales
Experience
Unwanted Scenario
Experience
with the
product
service
4. Ideal Development of the Relationship with Customers
Experience
with the brand
Customer
Care
Experience Loyalty and
with the Satisfaction
product/ Programs,
service Product/
Others
Service
Acquisition
Sales
Experience
5. DIFFERENTIATION
As a result of
technology progress
there are similar Company A Company Z
products at comparable
prices in different
market segments, then
the differentiating
factor is no longer in
the product but in
people and in the
company’s ability of
taking care of the
customer
6. …from Commercialization to Customer Loyalty
CUSTOMERLS If the product complies its function then is
EXPERIENCE possible to add accessories or services to it in
order to increase its perceived value.
Top
company delights The starting point of the customers’
the customer experience is given by the formal and
augmented products’ performance.
Excellent The decisive experience (facing indifferent or
company takes care low switching costs) is given by the efficient
of the customer administration, both reactive and proactive, of
the customers’ needs
Improved
augmented
product If the product fails, any further effort is futile
Basic Also, if the client conflict management is weak,
product fulfills the actions aimed at achieving customer loyalty
promise may become a negative component.
7. To take into account
• Inside a company, we are all customers and suppliers at some
point.
• The general direction of the company is a provider of the board of
directors and, at the same time, is customer and supplier of
different management areas
• Every business unit plays the role of a customer as well as a
supplier in between its own departments and towards the other
units.
• All this part of the organization may be called the back office of
the first line. The support of the final customer’s delivery.
• The first line is the face of the company for our end customers.
8. • Most of customer contacts are made in the first line, so here are the
best “customer profilers“ and those who know best the strengths and
weaknesses of our products and services.
• When the organization acknowledges the first line as an internal
customer, the likelihood of providing a better experience to the end
customer, increases.
• When the customers information, collected from the different areas, is
used as feedback for the organization, the greater it is its ability to
design more efficient strategies in the different areas.
• If the organization is focused on keeping their customer base, it has a
certain chance to increase its perceived value, brand loyalty and ROI.
• …. if not, there will always be someone out there, who will have a
better offer which, if the switching cost is reasonable for the
customer, will trigger his/her switch.
9. Finance Unit
Internal customers
Board of General
Directors
back office
Direction
Marketing
COMPETITION
Unit
A Corporate View
Operations
Unit
Internal Customer
sales and post sales offices
front office
END CUSTOMER
10. Value Proposal:
CRM Strategic Planning
Main Subjects
• Evaluation and analysis of the company towards its
customer relationship
• Diagnosis
• Strategic Design
11. Strategic Design
Some components
• Defining general guidelines of the company in relation to CRM
– General objectives, goals by area/unit
– Relationship between areas regarding the goals
• Macro Segmentation of the customers’ base
– Identification, quantification, characterization and assessment of the segments of
the customer base
• Micro segmentation of the customers base
– Needs identification within each segment
– Defining and designing the customers’ cycle for each segment
• Budget and Investment
– Assessment on potential revenue by segment
– First assessment on the investment needs
– Analysis of sales' cost versus retention costs
• Competitive Analysis
– Who, What, How, Results
– CRM benchmark analysis
• Designing a CRM strategy
– Segment objectives, program activities, tools definition (hardware, software),
measurement and evaluation of results program, adjusted budget
• Communication and Implementation of the CRM strategy
12. Helena Durán L.
MBA Catholic University of Louvain
Independent Consultant on CRM Strategic Design
helenaduran0@gmail.com