This document discusses several models for customer relationship management (CRM). It describes the IDIC model which involves identifying customers, differentiating them, interacting with them, and customizing products/services for each customer. It also outlines the QCI model which examines how external environment, customer experience, infrastructure, and processes work together in customer management. Additionally, it summarizes the CRM value chain model which divides CRM into primary stages of analyzing customer portfolio, developing customer intimacy/networks, and managing the customer lifecycle, supported by leadership, technology, people and processes. The five step process model focuses on strategy development, value creation, multichannel integration, information management and performance assessment.
2. INTRODUCTION TO CRM MODELS
• Customer Relationship Management Model defines framework to
manage customer relationship through stages from acquisition till
retention.
• CRM Model lays down strategy to develop customer relationship by
focusing on :-
a) Customer Satisfaction
b) Building Customer Loyalty
c) Enhancing Customer experience through customized product/ service
d) Providing competitive advantage
e) Establishing strong multi-channel communication network
4. IDIC MODEL OF CRM
Identify
your
customers as
individuals
and let them
feel you
know them
Differentiate
your
customers
by their
value to the
organization
Differentiate
your
customers
by their
needs from
the
organization
Interact
with the
customers
according to
their values
and their
needs
Customize
your
products and
services to
customer’s
need
Information to the organization about the
customers and their needs
Value Sieve
Information to customers, about
your ability to cope with their needs
5. IDIC MODEL- IDENTIFY, DIFFERENTIATE,
INTERACT & CUSTOMIZE
• The IDIC model was developed by Peppers and Rogers to categorize CRM
implementation process into four stages –
I - IDENTIFY , D - DIFFERENTIATE , I - INTERACT, C - CUSTOMIZE
• The first step is to identify your customer and collect quality data to create a customer
knowledge database regarding their name, address, purchase history, preferences, point
of contact etc. which can be used to generate useful insights in creating value for
business.
• The second step is to differentiate customer and create segments on the basis of their
lifetime purchase value from the business so that customized targeting could be done to
suit each segment.
• Third step is to interact with your customers on the basis of segmented analysis done
and offering various loyalty programs and membership, engagement activities, multi-
channel communication to maintain involvement and continually gathering insights to
improve product/ service offerings.
6. IDIC MODEL
The last step is to customize the product/ services offered with the help of
analysis done at each stages of identification, differentiation and interaction.
Customization creates barrier for other competitors to capture market share.
IDENTIFY
Customers to create
customer knowledge
database which can
be used to establish
unique identification.
DIFFERENTIATE
Creating multiple
segments of
customers based on
their purchase value
and preferences.
INTERACT
Communicate with
different customers
to create
engagement and
continuous
involvement in
business.
CUSTOMIZE
Customizing product
and services to
create customer
loyalty and equity.
IDIC MODEL OF CRM
7. QCI MODEL- QUALITY COMPETITIVE INDEX
External Environment
Customer Experiences
Analysisand
Planning
Customer
propositions
Customer
Management
Activity
Measurement
People and Organization
Infrastructure
Targeting
Retention
activity
Managing
dissatisfaction
Customer Information Technology Support Process Management
Customer
8. QCI MODEL – QUALITY COMPETITIVE INDEX
• This model shows a series of activities related to external environment, customer
experience, people, organization and infrastructure which together helps in building the
whole process of customer management activity.
• According to this model, external environment directly affects the customer experience
and also affects the planning & analysis process of the organizations.
• Customer experience is affected by : customer proposition, customer management
activity, and measurement where, customer proposition means something that a
company offers to the customer as product/ service against the price, customer
management activity is a process of capturing customers which start with targeting,
conversation, selling and end with retaining or winning back the customers and
measurement is about maintaining a follow up with the acquired results.
• Infrastructure deals with the organization in a sense of technology, customer information,
and process management to act as a facilitator for crm implementation.
• Each activity, people, organization, process, and technology have a dual effect and are
inter-correlated with each other in the model.
9. CRM VALUE CHAIN MODEL
Customer
Portfolio
Analysis
Customer
Intimacy
Network
Development
Value
Proposition
Development
Managethe
Customer
Lifecycle
Leadership and Culture
Data and Information Technology
People
Processes
PrimaryStagesSupportingConditions
10. CRM VALUE CHAIN MODEL
• CRM Value Chain Model developed by Francis Buttle in the year 2004. It
divides the whole customer management activity into two stages – primary and
secondary or supporting.
• At primary stage the focus is on customer to develop strategy to maintain
significantly long-term mutually profitable relationship.
• Primary stage has been divided into five parts starting right from customer
portfolio analysis, it goes through customer intimacy, network development,
value proposition development and ending at customer lifecycle management.
• Customer portfolio analysis is done to segment the customers according to
their lifetime purchase value and identifying mixture of different customer base
significant to business.
11. CRM VALUE CHAIN MODEL
• Customer intimacy is all about knowing you customer well so data collected at
various stages are stored as knowledge database which is used for analysis
purpose.
• Network development means the company must create a complete network of
suppliers, manufacturers, employees, investors, technology, distributors and
retailers for customers to serve profitably.
• At this stage of value proposition customers should be provided with products/
services that would enhance customer satisfaction and meet their expectation.
• Last stage is about managing the customer lifecycle and building customer equity
which would serve as a goodwill for the business along with consistent revenue.
• At secondary stages there are supporting conditions in terms of robust technology,
skilled people, efficient process and work-oriented culture integrated to ensure
profitability of business and support effective customer relationship management.
12. PAYNE & FROW’S FIVE STEP PROCESS MODEL
Business
Strategy
Customer
Strategy
Value Customer
Receives
(Co-creation)
Value Organization
Receives
Multi Channel
Communication
Direct Marketing
Mobile Commerce
Electronic Media
Call Centres
Internet
Shareholder
Results
Performance
Monitoring
Data Repository
Strategy
Development
Process
Value
Creation
Process
Multi- Channel
Integration
Process
Performance
Assessment
Process
13. PAYNE’S & FROW FIVE STEP PROCESS MODEL
• The five step process model was developed by Adrian Payne and Pennie
Frow.
• This model outlines five processes : Strategy development, Value creation,
Multichannel integration, Information management and Performance
assessment.
• It emphasis on building collaborative business and customer strategy to create
value in product/ services provided to customers.
• It also focuses on developing multichannel integrated communication network
to make things more accessible and feasible for customers.
• Performance assessment is an important part of model to measure the
success of business in meeting set standards and targets.
• Data repository combines of IT system, front and back office application,
analytical tools and web robustness.