Crm Qci Model

Topics: Strategic management, Management, Customer relationship management Pages: 10 (2134 words) Published: February 16, 2011
Customer Relationship Management|

Contents page


What is Customer Relationship Management?1

QCi Model2

Elements of QCi Model2

Executive Summary8




Even though the interaction between a company and its customers exists long time the expression of Customer Relationship Management (CRM) has only been used since the early 1990s. IT companies have leaned to use the term CRM, to portray the software applications that automate the marketing, selling and service functionality of an organization.

What is CRM (Customer Relationship Management)?

A Frequently cited definition of CRM is “Customer Relationship Management is the establishment, development, maintenance and optimisation of long term mutually valuable relationships between consumers and organizations” (CRM UK Ltd (2002))

From the business strategy prospective, CRM is the strategic process of the interaction between an organization and its customers, to maximize customer retention and maximize customer satisfaction and customer values. CRM is driven by drivers of following three contextual factors i.e. Quality, IT and Database Marketing.

A hybrid CRM model

There are many tools used to measure and benchmark the CRM. CMAT (Customer Management Assessment Tool) is the leading CRM assessment approach for the organizations which need to understand how they manage the existing customers & prospective customers and to compare the performance to a global benchmark.

QCi Model

The Customer Management Scorecard is a groundbreaking report into current practices for managing customers, conducted by leading management consultancy firm “QCi” Ltd. using its CMAT. This model called as QCi Model. It’s the largest evidence based study into how well organizations are really managing customers.

Elements of QCi Model

Analysis & Planning

Key to successful CRM is the understanding of the values, attitudes and the behaviours of customers and prospectors. Analysing values, attitudes and the behaviours of customers is a vital strategic input to Customer Management planning and this helps to understand the Customer Management life cycle. Analysis and planning covers:

Analysis and planning summary
Customer management strategy and business case development
Customer value analysis
Customer and prospect segmentation

After an extensive external analysis, which consist of both the customers and the competitors the planning has to be focused on cost effective way of getting hold of customers and maximise the customer satisfaction. Most effective way of planning can be done by considering the factors of REAP (Retention, Efficiency, Acquisition and Penetration) structure.

The best practice example can be found in Rolls Royce and Bently Motors. Their unparalleled levels of service and extensive analysis and planning adopted in customer relationship management, which was planned to analyse customer satisfaction, customer loyalty, complaint management and future potentials is the best example of Analysis & planning for a CRM implementation


After identify the divisions of customers, the intention is to define each customer segments in terms of Brand, Price and Service which drives the experience that the customer anticipates when deal with the organization.

The best practice example is BP Gas faced major challenges in developing proposition framework in Europe. Firstly to be flexible enough to allow local adaptation in different product in different country and secondly they had to a way to communicate the plan to the staff who deliver it. Each European business adopts in different product in the local market and each business developed market specific value added addition. And then build a series of communication with a very successful...
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