To enable an effective CRM, a suitable strategy needs to be developed and implemented.Therefore a company should develop an orientation that would enable it to enjoy the trust of the customers, ensure commitment to relationships and also undertake proper communication.

1. STRATEGIC CUSTOMER
RELATIONSHIP
MANAGEMENT(CRM)

2. Strategic Orientation For CRM
To enable an effective CRM, a suitable strategy needs
to be developed and implemented.
The key drivers to be taken into consideration in
CRM to ensure right orientation are:
1. Trust
2. Relationship Commitment
3. Communication
Therefore a company should develop an
orientation that would enable it to enjoy the trust
of the customers, ensure commitment to
relationships and also undertake proper
communication.

3. Identifying the Key Customers
• It involves slotting of customers into various
segments based on the profitability, needs ,
purchase behavior etc.
• Employing the resources of the company in an
equitable manner on all customers.
• For example. ICICI, AXIS bank offers Private
banking facility for key customers, they are
offered well appointed private lounge facility
with basic hospitality, & a designated
relationship manager is available on call.

4. Extending The Concept of
Relationship
• Companies developing the CRM strategy should
also plan how the relationship can be extended
to create more value through the loyal
customers.
• In this way, apart from leveraging the lifetime
values of the customers, the companies can even
extend the value that had been initially ascribed
to the customer and create higher customer
equity.

5. •
The aspects that can help in this regard
include:
1. Building a community: The customers
belonging to a particular segment can be
grouped together to create a community. For
example Indian Express news paper has
created the Express Youth Club which has
become a community for readers belonging to
the youth segment.

6. 2. Extended Family: The company can become
an extension of the family for the customer. In
olden days, families considered various service
providers like jewellers,doctors etc . a part of
the extended family.
This feeling of extended family can be
inculcated which will help to extend the
concept of the relationship.
3. Loyal Advocates: Once the customer has
exhibited loyalty, the company can take the
opportunity of making the customer an
advocate. For example the customers of
amazaon.com are paid as referral fees

7. The Strategic framework for CRM
• The CRM strategy should be encapsulated into a
strategic framework which will serve as a guiding
tool to be followed for the CRM initiative. Payne
and Frow (2005)conducted research to develop a
strategic framework for CRM. According to them,
the key generic CRM process can be summed
up in Five points viz.
• The Strategy Development Process
• The Value creation Process
• The multi-channel Integration Process
• The information Management Process
• The performance Assessment Process

8. 1. The strategic development process: This
can begin with a review of the company's
vision as well as that of the industry and the
competitors.
2. The Value Creation Process: The company
should judge the value that is being offered to
the customer which can include aspects like
co-creation of value with the help of the
customer as well. Also the company should
judge the value being received from the
customer

9. 3. The multi-channel Integration Process: In
this process ,the channels are viewed from the
customers standpoint and taking into account
the fact that hybrid channels have emerged as
a means to customer access, the channel most
suited for a customer should offered to a customer or the
customer could be migrated to that channel.
4. The Information Management Process: A
critical role in the CRM process is played by
the information management process. The
parts that make up the information
management system include-data repository,
hardware, s/w etc.

10. 5. The performance assessment process: The
performance assessment process should
include the two components
(1) Shareholder results (what value is it creating
for shareholders),
(2)Performance monitoring (enhancement of
customer retention, satisfaction levels etc.).