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!
Thursday 28 May 2015
   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 Search The Wise Marketer from top to bottom!
   The Wise Marketer   
    NEW!    Loyalty Companions:      Retail      Supermarket/Grocery      Coalitions      Hotels      Airlines      Financial Services      B2B   

Click Here for Free Marketing Email Updates every Thursday!

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

In related news...

Have your loyalty news delivered.

You can have the most important loyalty marketing news sent by email every week...
Sign up here

A WORD FROM THE WISE MARKETER'S PUBLISHER...
Find out more The Loyalty Guide - your complete guide to customer loyalty, engagement, digital, social & mobile marketing. (PDF, 1276 pages)

Download a working sample here

 

What is The Wise Marketer?

We're an independent trade publication for customer loyalty and marketing professionals, bringing together all the latest news, research, and best practices from the whole industry, worldwide ... Find out more

See The Loyalty Guide 6 up close, and find out how to increase profits and market share with more effective loyalty marketing!

Join nearly 15,000 other loyalty and marketing professionals and get our free weekly news roundups...

Sign Up For Free

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?

Generation Rules in Digital Marketing - Brands are fast realising the concrete importance of technology in marketing efforts. This was evidenced in 2014 when Gartner reported 81% of organisations have the equivalent of a chief marketing ...
Brands must improve cross-channel strategies - Today, consumers don't think about engaging with brands through different channels; they simply engage. They move effortlessly between channels, devices, and platforms, blurring the lines of ...
Hotels.com revamps loyalty scheme - Hotels.com has introduced new savings for its loyal customers through a new programme called 'Secret Prices', which offers its members a greater selection of hotel deals, many of which are not available ...
Most consumers use phones for SMS, not Email - Text messaging is the single most effective communication channel for brands seeking to contact consumers in real-time with time-sensitive information, such as order status alerts, according to ...
Mind the Intelligence Gap: What About Engagement? - With buzzwords like 'omnichannel engagement' and 'customer loyalty' inundating marketing circles, many marketers have been duped into rushing their customer engagements devoid of any ...
Mobile has higher redemption rates and lower costs - Global brand and retail spend on digital marketing activities will reach US$200 billion this year, up by 15% on 2014's levels, according to a market survey from Juniper Research. The ...
There's an ill-planned Cull of Cashback on Cards - In the UK, both The Daily Mail and The Daily Telegraph have recently run articles stating that the cashback and loyalty points offered by the UK banks including Santander and Tesco Bank will ...
Customer Experience failures cost you 65% of sales - For every customer experience failure, brands lose an average of 65% of the revenue they would have earned from the affected customer during the following year, according to a global ...
Qantas launches Joey Club FFP for 3-10 year olds - Qantas' youngest flyers are set to enjoy a range of benefits when travelling with the airline following the launch of the new 'Joey Club' - a frequent flyer programme for children. The ...
Marketing Continuity: Targeting by Segmentation - Perhaps the most well-understood of the marketing tactics that make up an identity-driven marketing strategy, segmentation is an alternative to the spray and pray method of marketing that ...
Nine types of social app to aid your CRM - IT application leaders supporting customer relationship management (CRM) initiatives still need to fully understand the differences in functionality between various social applications to identify ...
Will investment shift away from loyalty this year? - Marketers are expanding customer loyalty strategies beyond the traditional loyalty functionality. Most notably, customer experience and customer engagement are included in brand customer ...
US consumers say they like card-linked marketing - The majority of Americans are embracing card-linked marketing - the practice of using purchase data to deliver relevant ads to consumers through their mobile and online banking applications ...
Why are marketers too scared to personalize? - Every marketer is being told that personalisation is the number one priority. But when does personalisation become too personal? When does the great customer offer segue into the over familiar ...
Why interactive retail experiences work online too - We all know how important customer experience is. It's what drives loyalty and sales, and ultimately gives brands a way to avoid a race to the bottom on price. Customer experience used to ...
Dunnhumby & Kroger revise their relationship - Dunnhumby and Kroger have announced a new chapter in their alliance that aims to provide greater flexibility for both parties to use data to create substantial opportunities for innovation and ...
Awards map the true Loyalty Landscape for 2015 - Loyalty 360 has recently announced the winners of its 2015 Loyalty 360 Awards for Excellence in building healthy and profitable customer relationships, with Platinum Level award winners ...
How to create the perfect customer profile - The digital landscape is broadening and evolving each day and week, and leading brands are enjoying success as a result of delivering a joined up, consistent, multichannel experience. Failure to ...
Pizza loyalty scheme nearly doubles off-peak dining - In the US, Grotto Pizza recently adopted the Paytronix Rewards Platform to implement a multi-tiered loyalty programme that rewards year-round diners without heavily discounting seasonal ...
Customers Notice the Little Things - The 'little things' can be the difference between a big success and failure for a company, and the key reason is that people react emotionally because of the attention paid to minor details, according to ...

  ... Never miss anything important - join nearly 15,000 marketing professionals and get our free weekly newsletter, written by marketers for marketers - sign up here!

 

  
                                            
   The Wise Marketer   
   Published by Wise Research Limited. Copyright © 2000-2015 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!