Customer relationship management is a strategy of every organization which is made by the companies and the business to maintain the performance and the position of a company. Customer relationship management is a model which could be defined as technology, strategy and practice that is used by various organizations to develop and manage the customer data and customer interactions so that a good relationship could be managed. These strategies helps the company to maintain the relationship with the customers and also help the company to make loyal customers, indirectly these strategies help the company to enhance the turnover and grab more market share. It also helps a company to retain the customers.
Customer relationship model is an approach that assists the company to manage the customers. CRM model helps a company to build and develop a good relationship with the customers. Basically, a CRM model is known as an “opportunity for business” model as various issues and the problems of a company could easily be reduced through this strategy. This model helps an organization into managing and reducing the cost of customer turnover, the switching cost of the company get reduced due to the CRM model this model enhances the level of the collaboration and managing the other activities of a business. It would also assist an organization into grabbing the international market. .
Gartner’s Competency CRM Model
The CRM framework has been presented by Gartner in 2002. This CRM framework has eight blocks.
Components of the customer relationship model of Gartner’s competency model are as follows:
1. CRM vision: It is the main vision of this CRM model to earn the loyalty of the customer and it also anticipates the need and the values of the customers. Basically, this model express that the customers could be retained and their values could be created through the product quality consistency, reliability over the products and company, flexibility, innovative services and the responsiveness towards the customer. This model helps a company to manage all the above explained factors so that the company could achieve the target and the vision. It would also enrich the trust and co operation through mutual understanding and the various innovative services.
2. CRM strategy: The main strategy of CRM model is to create and maintain a structured roadmap for the organization to manage the customers and it also prioritizes the initiatives. Basically, this model express that the companies are required to manages and identify the goals and initiatives respectively, it benchmarks the current state of a company. Further, this model determine the experience level of a customer and it baselines the goals setting. This model helps a company to manage and enrich the trust and co operation through mutual understanding and the various innovative services so that the company could achieve the target.
3. Valued customer experience: The next component of CRM model express that it is required for the business to ask the customers for their experience through various sources. This experience could be recognized by a company through a continuing process in which the product and services would be developed by the company firstly and then the promotion would be done for the products and the services. Further, the experiences of pricing and the purchase would be registered. Than the product experience could be evaluated. Further, the billing payment and the care experience must be recognized and lastly, the exit experience. This model helps a company to manage and enrich the trust and co operation through mutual understanding and the various innovative services so that the company could achieve the target.
4. Organizational collaboration: The next component of CRM model is to manage the various efforts of the collaboration to manage the customer’s relationship with the organization. The organizational collaboration depict that a business is required to manage the strategy, process, culture and the Information technology system in a better way and efficient manner to manage the process and the collaboration of the organization in a perfect manner which would help the company to achieve its target in an efficient manner. This model helps a company to manage and enrich the trust and co operation through mutual understanding and the various innovative services so that the company could achieve the target.
5. CRM process: The next component of CRM model is to manage the process of the customer relationship in an organization. Basically, a CRM process must start from the point where a customer enters into the store or shows some interest into your product through online or offline sources and this strategy must go on from their first point to the end. A company must analyze and verify that the customers are happy with the products or the services. The customers must also be provided some after sell services and for making them good client, a company is required to send them well wishes timely. This model helps a company to manage and enrich the trust and co operation through mutual understanding and the various innovative services so that the company could achieve the target.
6. CRM information: The next component of CRM model is to inform the customers of the organization about each change which have taken place into the company. A company is required to express the client about the value segment of the customers in the company, company must understand the needs and preferences of the customer, the target customer of the company must be classified in a perfect manner, customer responses must be monitored and the next step and the campaign must be started on the basis of that. This model helps a company to manage and enrich the trust and co operation through mutual understanding and the various innovative services so that the company could achieve the target.
7. CRM technology: The next component of CRM model depict about the technology which could be used by the organization to manage the good relationship with the customers. This segment depict that an organization could communicate and solve the query of its customers through various online sources. It would save the time of the client and organization both and at the same time; it would manage and enrich the trust and co operation through mutual understanding and the various innovative services so that the company could achieve the target. Information technology system could be a better way and efficient manner to manage the process and the process of retaining and attracting more customers in the organization. It would help the company in a perfect manner to achieve its target in an efficient manner. This model helps a company to manage and enrich the trust and co operation through mutual understanding and the various innovative services so that the company could achieve the target.
8. CRM metrics: The last component of CRM model depict about the various matrices which would help the company to manage the CRM policies in a better way. Some of the matrices which could be followed by the company are as follows:
- Case must be closed same day
- Service renewals % must be in favor of the customers
- Brand image must be good
- Average number of services must be considered
- Average time of resolution must be taken into context
- Services calls number are also important
- Customer categorization must be done
- Customer satisfaction level must be good.
This model helps a company to manage and enrich the trust and co operation through mutual understanding and the various innovative services so that the company could achieve the target.
With the components of the Gartner’s customer relationship model, it has been found that the main aim of every CRM model is to enhance the level of the customer attraction and retention. This model helps an organization into managing and reducing the cost of customer turnover, the switching cost of the company get reduced due to the CRM model this model enhances the level of the collaboration and managing the other activities of a business. It would also assist an organization into grabbing the international market.
Various organization form the worldwide uses this technology to manage their business and enhance the level of their business. In current era, it becomes important for every business to manage and run the business in such a manner that the society gets the benefits of it and it could be possible through the CRM model. On the basis of CRM model, it becomes easy for the companies to categorize the customers and mange the relationship on that basis only. Through these ways, the international market is also not a big deal for the company and the client satisfaction would also enhance.
This model is the customer oriented model, it mainly focuses over the customer relationship only. The other factors of a business could not be considered and evaluated through this model by a company. A business is required to manage the strategy, process, culture and the Information technology system in a better way and efficient manner to manage the process and the objectives of the organization in a perfect manner which would help the company to achieve its target in an efficient manner.