Customer Relationship Management

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CUSTOMER RELATION MANAGEMENT

• MODULE CUSTOMER MANAGEMENT

• LECTURER DR GEOFF WINTER

• TOPICCUSTOMER RELATION MANAGEMENT.

• SUBMITED BYMUHAMMAD AMIR

• I.D. 39644

• GROUP D

TABLE OF CONTENT

1. EXECUTIVE SUMMARY

2. DEFINITION OF CUSTOMER RELATION MANAGEMENT

3. QCI CUSTOMER MANAGEMENT MODEL

4. DISCUSSION

5. CONCLUSION

6. CITATIONS

EXECUTIVE SUMMARY

This paper discuss the Customer Relationship Management concept through customer satisfaction maximization and customer retention driven by drivers of quality, IT and database marketing. This paper gives an outline of QCi elements to assist a argument on how the model manages customer in a proficient manner, by maintaining quality and efficiency, by simplicity of doing business, by problem solving, by appropriateness and in a affable ready for action setting.

What is Customer Relation Management

“Customer Relationship Management,(CRM), is a strategic process which relates to interaction between business and its consumer. Its purpose is to maximize customer satisfaction and customer retention (inseat online 2009). It is driven by three component quality, database marketing and IT.”

Quality competitiveness index (QCi) Customer Management model

“This model helps organization become more cost-effective through more effective and efficient customer management. The customer framework works with large organizations helping them in order to identify opportunities to increase profits and reduce cost in their customer management operations.”

“Customer relationship management is much more than simply the technology. This model can be used by companies to understand how well they are managing their customers (Foss and Stone (2001)).”

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1 Elements of QCi customer management model

This model consist of nine elements and they are as follows:

1. Analysis and planning

2. Propositions

3. Information and technology

4. People and organizations

5. Process management

6. Customer management activity

7. Measuring the effect

8. Customer experience

9. Competition

1 Analysis and planning

Effective CRM(Customer Relationship Management) begin from understanding the value, attitudes and behaviors of various customer and prospects. Once this has been achieved customers and prospects has to be segmented so that the planning activity can be as effective as is possible. The planning will focus on areas such as cost effective, retention, and acquisition of customers of company.

Analysis and planning covers

• Strategic input to CM planning

• Customer transaction analysis

• Lifecycle understanding

• Profiling and external analysis

• Lifetime value monitoring

• Customer and prospect segmentation

• Competitor analysis

• Tacit knowledge management

• Contact and management planning

2 Propositions

After segmentation and understood, the proposition to each segment needs to be defined and proper value-based offers planned. The propositions will be defined in terms of brand, price, and service and should derive the experience which the customer expects from dealing with the organizations. The propositions must be communicated to both the customers and the people of organization responsible for delivering it to customers.

Propositions covers

• Customer needs research

• Overall proposition development

• Segment proposition matching

• Service standards

• Proposition external communication

• Proposition internal communication

3 Information and technology

IT provides the foundation for the whole model. Data need to be collected, stored, analyzed and used in a way that provides information which is consistent with the CRM strategy, the way...
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