A CRM is a customer relationship manager that seeks to manage the communication and needs of customers and prospects in an integrated system, i.e., it aims to drive sales, marketing, and customer service in a single-point application.
Garnet proposes an eight-block methodology for the implementation of a CRM to be effective in terms of optimizing profitability, revenue, and customer satisfaction:
- Vision: One of the fundamental points in the implementation is to define the Vision, that is to say, why and for what I need a CRM.The Vision implies understanding what a CRM is so that employees understand its function. Also, it is vital to generate an agreement between the user areas of the application in terms of scope and priority.At this point, it is necessary to define what the Enterprise is looking for regarding the relationship with customers and the gap between this ideal state.
- Strategy: On the other hand, once I have defined what I need the CRM for, I must show how I will meet those expectations with the application.It is essential to define the business objectives, priorities, and conflicts that exist and how the CRM will help to meet them.
- Metrics: Processes and systems must be measured in some way to ensure that their performance meets the objectives and expectations. Defining metrics for a CRM is a fundamental step to monitor whether the reason for the CRM is being met, for example, in terms of time, cost, or business value. The definition of metrics must be a conscious process where they are simple to understand, aligned with the business needs, measure the evolution of the process over time, and are specific and achievable.
- Customer Experience: To define a CRM, it is necessary to know the needs and desires of the customer to help to answer questions such as what the customer expects, what the customer thinks, their feelings and desires, and touchpoints with them.
- Organizational collaboration: As mentioned in previous points, it is crucial that there is an alignment within the organization. It implies understanding what the CRM is about and what it is for, defining priorities, plans for change aversion, training, and migration plan.
- Processes: A CRM should not be a tool for a single entity but should be an application that serves the Enterprise holistically. All departments likely to use it must be involved in defining requirements and priorities to ensure that the CRM has a global impact, that there is no redundant data and functionality, and that it offers value to the customer and the company. In other words, during the planning process.
- Information and insight: The added value of a CRM is a comprehensive knowledge of the customer. To accomplish this, information about the customer must be stored and processed. To achieve optimal data management, a data management strategy must be generated, i.e., how I will get the data, data cleansing, data governance and how I will process and analyze it.
- Technology: Last but not least, the choice of the technology tool to be used according to the above definition.
References
Alvarez G, Agarwal V. Garnet( 2022, Sep 20). The Eight Building Blocks of CRM: Vision
Hansen I. Garnet (2021, Mar 26). The Eight Building Blocks of CRM: Strategy
Alvarez G. Garnet (2022, Apr 23). The Eight Building Blocks of CRM: Metrics
Chiu M. Garnert (2022, Sep 9). The Eight Building Blocks of CRM: Customer Experience
Rathnayake P. Garnert ( 2022, Nov 3).The Eight Building Blocks of CRM: Processes
Norrie D. Garnert (2022, Nov 3). The Eight Building Blocks of CRM: Information and Insight
Alvarez G. Garnert (2022. Sep 13). The Eight Building Blocks of CRM: Technology
Laura, good post. Customer relations is an important part of business outcomes. There is common saying: “the customer is always right” haha. Not sure if that is an accurate statement with today’s complex society. Customer relations is so much more now. As you alluded to a customer relationship manager seeks to integrate systems based on the customers’ needs to support communication channels and optimize business outcomes. The eight methodologies outlined help support that outcome: vision, strategy, metrics, customer experience, organizational collaboration, processes, information and insights, and technology. Probably the most attractive aspects to business are technology and metrics. Businesses want to know the best decisions to make often supported by technology and metrics. Metrics will help influence those necessary decision to ensure business outcomes and improve integrated systems. Technology is the mechanism that is making data analytics much faster and allowing business more agility to remain competitive. CRM is certainly a critical aspect within enterprise technology.
Laura, thank you for sharing your analysis on the eight building blocks of Customer Relationship Management. Your insights provide an excellent framework for businesses looking to optimize business models with effective CRM implementation. I would like to build upon your thoughts, particularly emphasizing the integration and interdependence of these blocks. It is crucial for organizations to remember that these eight components do not exist in isolation. Instead, they function as interconnected parts of a holistic system. When well-aligned, they create a robust, effective, and efficient CRM strategy that benefits both the company and its customers. Starting from the Vision, businesses must strive to establish a clear, strategic direction for their CRM efforts. However, this vision should not be static. As the Customer Experience changes over time, so should the vision, adapting and evolving to meet new customer needs and market trends. Speaking of Customer Experience, I appreciate your emphasis on understanding customer expectations, thoughts, feelings, and touchpoints. In the era of customer-centric businesses, this aspect is non-negotiable. Still, the challenge lies in translating this understanding into actionable Processes and Organizational Collaboration, which in turn inform Information and Insight gathered by the CRM. Your point on Metrics also deserves special mention. These serve as the quantifiable indicators of CRM performance, linking strategy to execution. Without defined metrics, it becomes difficult to assess the efficiency and effectiveness of CRM, making it crucial to define them in alignment with business needs. The Information and Insight block stresses the importance of comprehensive knowledge of the customer. As data becomes the new oil, businesses that can effectively manage, analyze, and apply customer data can gain a substantial competitive edge. However, this necessitates a robust Technology solution that can facilitate data management and deliver valuable insights. Finally, the Technology aspect, while listed last, should not be underestimated. The selection of the right CRM technology is critical, as it is the vehicle that drives the entire CRM strategy. Effective CRM implementation requires a harmonious alignment of all eight building blocks. Each component plays a vital role in the system, contributing to the creation of a CRM strategy that boosts profitability, enhances customer satisfaction, and drives revenue growth.
Good job and keep up the great work! 😊