Integrated customer relationship

management for service activities

An internal/external gap model

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 |urpose

_ The purpose of this paper is to suggest an integrated

framework for designing, Implementing and
evaluating a customer relationship marketing (CRM)
system in service companies,
_ It is based on gap analysis.
 Introduction

_ CRM technologies have matured in the last decade,

_ Their implementation failure rates are high, ranging
from 55 to 75 percent
_ Approximately 70 percent of CRM projects result in
either losses or no bottom-line improvement in
company performance
 ?ervice economy

_ Intangibility,
_ Inseparability
_ Heterogeneity
_ |erishability
 CRM opportunities in ?ervice Industry

_ CRM is expected to multiply opportunities for

delivering information to customers, providing
offerings and answers to complains.
_ CRM is expected to contribute to existing or new
relationships.
_ CRM has the potential to facilitate the customization
of the offerings.
_ CRM is expected to reduce the transaction cost.
 CRM Issues

   
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 INTERNAL FACTOR? INFLUENCING
CRM DE?IGN AND IM|LEMENTATION

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 XORGANIZATIONAL ENVIRONMENT

_ Effective communication and integration

between all internal functions.
_ Alignment of all related business processes
and, if necessary, reengineering of these
processes.
_ Development of customer service
consciousness and customer-centric
organisation culture.
 XMULTI-CHANNEL INTEGRATION
1) sales force, including field account management, service,
and personal
representation;
2) outlets, including retail branches, stores, depots, and
kiosks;
3) telephony, including traditional telephone, facsimile, telex,
and call center
contact;
4) direct marketing, including direct mail, radio, and
traditional television (but
excluding e-commerce);
5) e-commerce, including e-mail, the internet, and interactive
digita television; and
6) m-commerce, including mobile telephony, short message
 Cont«

_ Integration and coordination not only of alternative

distribution channels but also of all customer touch
points.
_ Development of synergies among these channels,
and
_ Mechanisms of avoidance and resolving conflicts
among these channels and customer touch points.
 X|EO|LE & MANAGEMENT

_ Training, specialized skills development of

employees.
_ Rewards/incentives policy relative to relationship
building and customer retention.
_ Focus on change management when required (user
involvement, communication, and re-training)
_ Deployment of an internal marketing plan to
establish a CRM consciousness , and
_ The management of the initial CRM implementation
project itself.
 EXTERNAL CU?TOMER RELATED FACTOR?

_ confidence and security;

_ time savings;
_ convenience;
_ better purchase decision;
_ financial returns;
_ customization; and
_ social satisfaction.
These are generally grouped into three categories:
Confidence, ?ocial and ?pecial Treatment
 Cont.

_ Common customer related quality

_ ?ocial penetration theory
 Need of DIE Model-Gap Analysis

_ Integrated consideration, especially for service

companies, calls for a systemic framework.
_ To deal with this flow of interactions service
management has largely adopted a systemic and
operational approach.
_ Thus,to better monitorCRM system implementation
by analysing the disparities among its different levels
and elements.
 Importance of DIE Gap model

_ Identifying the potential sources of problems,

inefficiencies or even failure points of a CRM
strategy.
_ Easy-to-understand and easy-to-use tool for the
diagnosis of mismatches among resources and/or
inter-related elements of a system.
GA| MODEL.
 Gap model

_ The first gap level refers to differences between customer

expectations and CRM strategy formulation.
_ The second gap level addresses the way organization,
technology and management are coordinated and aligned
with the strategy defined.
_ The third gap level refers to the fact that strategy and
resources should effectively be transformed into a set of
planned actions.
_ the fourth gap is customer-specific and measures the
difference between
_ customers¶ expectations in terms of relationship and
their perceptions of company¶s CRM policy and actions.
 CONCLU?ION? & MANAGERIAL
IM|LICATION?

_ CRM efficiency and effectiveness are the result of the

entire process of designing, managing and evaluating
the flow of interactions with clients.
_ This efficiency should be measure through the
relation quality between the customer and the
service provider and effectiveness is assessed
through loyalty development and sales growth.
 CONT«..

_ View relationship with customer as a value and as a

quality driver, so that it will lead managers to
consider expectations as a mean to design
appropriate interaction flows with customers.
_ For effective relationship quality management
coordination among all organizational, technological
and human components of the CRM system is
required.
THANK YOU