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CRM Models
BBAM 31043
Customer Relationship Management

Introduction to CRM Models

A CRM model is a framework for how, company will manage

customer relationships—from acquisition to retention. It helps to
learning about your customers, grouping them, contacting them, and
then using what you learn to tweak internal processes and optimize
your approach

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CRM Models lays down strategy to develop customer relationship by

focusing on,

Customer Satisfaction
Enhancing customer experience through customized
Products / Service
Providing Competitive advantage
Establishing strong multi channel communication Network
Building Customer Loyalty

Customer
Value
CRM Models

IDIC Model
CRM Models

Chain
Model

Payne and
Frow's Five
QCI Model
Forces
Model

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IDIC Model
• The IDIC Model has been developed by Peppers and Rogers (1995)

• The model helps to assess the expectation of customers and their

value to the business

IDIC Model

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IDIC Model
• Identify - Step one of the IDIC method is to figure out who your
customers are. During this stage, businesses might analyze
demographic data, look into likes and dislikes, and so on. In short,
you’ll collect as much information as you can.

• Differentiate - Your goal is to determine which customers are

valuable to you now and which could be even more valuable later.
You’ll also separate customers by their needs and desires

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• Interact - Interacting with customers through multiple channels

allows you to gauge their expectations, values, and relationships with
other businesses.

• Customize – Finally, using everything you know, tailor your products,

communications, and overall direction to meet your customers’
expectations.

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IDIC MODEL

Customer Value Chain Model

• Harvard Business School professor Michael Porter introduced the CRM
value chain model.
• The CRM value chain model helps companies identify and develop valuable
personalized solutions for customers.
• In this model, there are two stages. 01. Primary Stage 02. Supporting
Conditions.
• The primary stage focuses on customer identification and acquisition.
• The second stage focuses on ensuring your teams.

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Customer Value Chain Model

Primary Stage
• Customer portfolio analysis: Determine which customers bring your company the
most value. Then, figure out how to divide your resources among your customers
based on this value.
• Customer intimacy: Interact with your customers and obtain new data from each
interaction. Adjust your offerings for the customer according to what you learn.
• Network development: This step is unique among CRM models in that it looks beyond
your company and customers to third parties such as suppliers, investors and partners.
Your goal is to use the data from your customer intimacy step to advise these third
parties on how they can operate to optimize the customer experience.
• Value proposition development: Use the preceding three steps to develop a unique
value for your customer. Focus on individualized service and minimizing costs so you
can charge your customers less (or retain more earnings).
• Relationship management: Take a step back and look at the previous steps of your
process. Determine spots where you can improve or make changes, then implement
them.

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Supporting Conditions
• Leadership and culture: Without someone directing your operations and
setting company standards, your CRM model will be harder to execute.
• Procurement processes: You should have a solid workflow in place for
moving customers from highly interested prospects to actual customers.
• Human resources (HR) management processes: You should recruit an HR
team (or hire a third-party HR provider) to resolve internal issues as you go
about the CRM value chain model.
• IT management processes: Since CRM is quite data-intensive, proper IT
management is necessary for successful CRM.
• Organization design: You need to designate who is responsible for what and
who reports to whom.

QCI Model (Quality Competitive index)

• The Quality Competitive Index (QCI) model is a type of customer
management model.
• The model is very different from other CRM models as it focuses on
customer ‘management’ rather than relationship building. ‘Customer
management’ means giving importance to impulse buyers.
• The QCI model helps to review the current practices and create a
quantitative approach to improve customer management process.
• The model is made up of eight elements: Analysis and planning,
Information technology, Proposition, People and organization,
Process management, Customer management activity, Effect
measurement, Customer experience

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01. Analysis and planning: Fill in any data and behavioral gaps that your
prospect presents, then figure out what value your company brings to the
customer.
02. Proposition: Use your customer’s needs to determine how you’ll serve
them.
03. Information and technology: Look at your technology to determine
how it’s adding customer information to your CRM and analyzing data. Use
what you learn to conduct reviews and update or modify your technology
as needed.
04. People and organization: Designate certain employees as responsible
for managing customer feedback, such as service inquiries and online
reviews.

05. Process management: Ensure that your sales and customer service teams are
consistently supporting customers. Identify shortcomings and figure out how to resolve
them.

06. Customer management activity: This element has three elements of its own,
01.Acquisition - obtaining and learning about new customers
02.penetration - collecting information about customers and helping them feel
connected to your business and its goals.
03.retention - keeping customers engaged with your business, which might
include winning back dissatisfied customers

07. Effect measurement: Analyze your teams’ performance to see how their work
corresponds to sales. Get granular by looking at each sales and customer service rep’s
work as well.

08. Customer experience: Conduct the same process as in the previous step, but for
customer satisfaction instead of sales volume.

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Payne and Frow’s Five Forces Model

• Adrian Payne and Pennie Frow introduced, Five Forces CRM model.
• This Model is established to identify and assess processes relevant
to CRM
• The model discusses the relevance of various processes, namely :
Strategy development process
Value creation process
Multichannel integration process
Performance assessment process, and
Information management or analytical process

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