Three steps for a successful CRM strategy (19 Apr 2010, The Wise Marketer)
The Wise Marketer - Home Subscribe to our RSS feed!   Share it!   
Email this page to a friend! Tweet this! Share this via LinkedIn! Share this on Facebook! Share this on Google Plus!
  Mobile Edition Tablet Edition
   The Wise Marketer          Customer Strategy Network             Log In          Register for Free   
  
Stay up to date with What's Hot in the world of Customer Loyalty and Marketing All the latest Customer Loyalty and Marketing News and Developments worldwide - just the facts Facts, Figures and Stats to support your Loyalty, Engagement and Marketing initiatives Opinion and Analysis from the world's most respected Customer Loyalty and Marketing luminaries
The Loyalty Guide - the only complete global Guide to Customer Loyalty, Engagement and Marketing Feature Articles and How-To Guides by the world's most respected Customer Loyalty and Marketing experts Details of the top Customer Loyalty and Marketing Conferences worldwide Search The Wise Marketer from top to bottom!
   The Wise Marketer   

Get your headlines by email every Thursday - Free!

Three steps for a successful CRM strategy

   
Swap to the printable version of this page
Print!
 

Monday April 19, 2010                      Tweet this article

 


Building a customer relationship management (CRM) strategy is a unique process for each organisation that nevertheless should always involve three key steps, according to a report by Gartner.

The report, entitled 'Three Steps to Create a CRM Strategy', sets out and explains three key steps involved in developing and executing a successful CRM strategy: setting the destination, auditing the current situation, and mapping the journey to the destination.

According to Gartner, an effective CRM strategy cannot be developed in isolation, and must be relevant and linked to the overall corporate strategy, as well as building on existing sales and marketing strategies that are already in place.

The three steps outlined in the report can provide a solid framework for CRM success, as follows:

  1. Set the destination
    The vision of the company and the goals derived from this vision are the intended destination of the CRM strategy. The vision will be heavily dependent on the leadership of the company and on the selected CRM strategy. Ensure that the CRM vision is to articulate the future environment for the organisation in terms of profitability and customer experience.

    During the initial stages of the CRM initiative - while the CRM vision and strategy are being developed - the leadership and governance structure must be agreed upon and roles allocated before it is stressed by the impact of change management upon employees.
     

  2. Audit the current situation
    Skills, resources, competitors, partners and customers all need to be consulted in assessing the starting point. Before beginning the CRM initiative, organisations need to identify how mature their existing approach to CRM is. Most organisations have some existing or past attempt at CRM; even if these were deemed failures, there are usually some foundations that can be leveraged rather than ignored by the new team.

    Use the audit to evaluate the organisation against equivalent organisations in the same or a similar industry. A competitive benchmark is an excellent way to gauge how far behind or ahead the organisation is in comparison. Along with these two approaches, there are many other types of audit. Ultimately, companies should use as many of these assessment types as possible to prepare for the development of the CRM strategy.
     

  3. Map the journey
    The journey may take many years, and the map will change en route. It is important to plan for this before starting. A CRM strategy explains how an organisation will achieve the CRM vision. It is the integrated blueprint for how the organisation will achieve its sales, marketing and customer service goals.

    Therefore, it must give quantitative answers to questions such as: What is the ideal customer base? What products or services is it going to sell, to whom, at what price and through which channels? However, it must also be able to give much more subjective answers to more-holistic, organisation-wide questions such as: What is the best way to build customer loyalty? How will the organisation connect with a customer to create a positive "gut feel"? What will drive customers to recommend the organisation, brand and products to others more often to the point that they are willing to pay a premium price?

"Setting the destination, auditing the current situation and mapping the journey is an iterative process that may require several revisions before a final CRM strategy is developed," explained Ed Thompson, vice president and analyst for Gartner. "The challenge is to avoid rushing the development process, as the company may be committed to many years of change."

The report has been made available for purchase from the Gartner web site - click here (registration required before purchase).


More Info: 

http://www.gartner.com

> The Customer Loyalty Marketing Guide

Tell a friend about this article Tell a friend   or   Tweet this article

Have your loyalty news delivered - free.

Get all the most important customer loyalty and marketing news by email every Thursday, and it's still absolutely Free ...
Sign up!

 

What is The Wise Marketer?

We're the only truly unbiased, global source of news & research for customer loyalty and marketing professionals...   Join Free Here

See The Loyalty Guide 7 up close, and find out how to increase profits and market share with more effective loyalty marketing!

Join nearly 13,000 other loyalty and marketing professionals and get our free weekly news roundups...

Sign Up For Free

See The Loyalty Guide 7 up close, and find out how to increase profits and market share with more effective loyalty marketing!

Subscribe and follow...

Get our free weekly newsletter
Follow us on Twitter
Access our RSS news feed

Hot off the presses...

What's been happening recently?

News: Is Marriott having second thoughts over the Starwood deal? - Here's some hotel industry gossip courtesy of the New York Post: according to the Post, a mild case of buyer's remorse over the hotel company's recent $12 billion Starwood ...
News: Walmart pay exceeding expectations - More evidence that retailers are winning the battle for mobile payments loyalty through homegrown platforms: in his kickoff address at last week's CONNECT Mobile Innovation Summit in Chicago ...
News: Judge says AT&T can continue to say "thanks" - As we reported back in June, banking giant Citigroup sued telecom giant AT&T over "unlawful conduct" and "wanton trademark infringement" for the latter's use of the word "thanks" in its ...
Join us on Nov 17, 2016 for our 2nd Annual Loyalty Academy conference! - The Wise Marketer is pleased to announce the date of our 2nd annual Loyalty Academy Conference! Join a select group of marketing professionals on November 17, 2016 as ...
UK: Research reveals the four types of loyal customers - New research from the UK's Direct Marketing Association (DMA) reveals four different types of loyal customers: Active Loyals, Habitual Loyals, Situational Loyals, and Active Disloyals ...
Special offer: Join our FREE Loyalty Academy beta test on August 30! - The Wise Marketer Group is pleased to announce the beta launch of the Loyalty Academy, the first-ever online certification programme for loyalty marketers. As you are all ...
Insight: How AI fuels loyalty marketing - Over at Entrepreneur, contributor Ido Mart details the success of artificial intelligence (AI) applications in improving mobile offer response rates. The key takeaway: AI outperforms human-triggered ...
US: CVS Health launches CVS Pay in select cities - Techcrunch reports today that CVS Health is launching a new mobile payments and loyalty solution in select cities that will streamline the customer experience at pharmacy checkout. It's a ...
Australia: Survey reveals details of Australian loyalty participation - The fourth annual "For Love or Money" survey from Australian loyalty consultancy Directivity reveals that, while membership and activity rates in Australian loyalty ...
Opinion: Loyalty hero worship can be painful - Contributing editor Bill Hanifin has a personal take on the recent public relations struggles of AIR MILES Canada regarding its mileage expiration and reward redemption options. Bill's take: AIR ...
The latest hot customer loyalty space: Cannabis sales - The advent of legal marijuana in US states such as Colorado and Oregon has had the interesting side effect of allowing retail analysts to observe, in real time, how a brand new retailer ...
US: Walmart buys Jet.com - In its ongoing bid to join the ranks of the top e-commmerce retailer players, Walmart has made a $3 billion dollar purchase of would-be Amazon killer Jet.com. With Prime members entrenched firmly in Amazon's walled ...
Insight: Is brand loyalty dead? - Over at Forbes, contributer Kathleen Kusek tells consumer packaged goods (CPG) manufacurers to forget about brand loyalty. However, her rationale for this advice - that cultural shifts have seen Millennials ...
US: AMC Entertainment to enhance Stubs loyalty programme - Hollywood's lackluster year at the box office, full of poorly-reviewed superhero epics and under-performing sequels, has hit hard the fortunes of theatre chains such as AMC ...
How Michael Kors leverages social activity to build loyalty - Fashion magazine Glossy has an interesting look at how luxury fashion retailers such as Michael Kors are leveraging social media activity to build repeat purchase and brand ...
US: Marvel launches loyalty programme - Disney-owned superhero brand Marvel Entertainment is enjoying an unprecedented run of success at the box office through its Avengers-themed film properties. Now the brand hopes to leverage that success ...
US: Chipotle loyalty promotion moving the needle - Good news for troubled US-based fast-casual dining chain Chipotle, which has attempted to recover from a devastating e-coli outbreak with a summer loyalty promotion. Sales numbers may ...
India: Amazon launches Prime in India - In contrast to its dominant e-commerce position in Western countries such as the US and the UK, Amazon faces much stiffer competition in India from e-retailer leader Flipkart and upstarts such as ...
The end of an era in frequent-flyer programmes - Over at Skift, Grant Martin offers a eulogy for US-based legacy carrier loyalty programmes, which have completed the transition from mileage- to revenue-based earning structures. With ...
US: Best Buy to implement reward programme changes - Techspot reports that US-based electronics retailer Best Buy has emailed members of its My Best Buy reward programme on changes to its earning and benefits structure beginning August 28 ...

  ... Never miss anything important - join nearly 13,000 marketing professionals and get our free weekly newsletter, written by marketers for marketers - sign up here!

 

See The Loyalty Guide 7 up close, and find out how to increase profits and market share with more effective loyalty marketing!
  
                          
   The Wise Marketer   
   Published By & Copyright 2016 Customer Strategy Network / The Wise Marketer. All rights reserved.   
The Wise Marketer - Home Subscribe to our RSS feed! Share this on Facebook! Share this on Google Plus! Tweet this! Share this via LinkedIn! Email this page to a friend!