A feasible generalized definition of CRM is that it is information enabled relationship marketing. This definition, however, doesn’t de-link CRM with technology because information management in the modern business world is completely technology enabled. The expected output of CRM is development of positive relationship with key customers or customer segments that improves shareholder value of an organization. In the modern context, CRM is an effective methodology of IT enabled execution of relationship marketing strategies to develop long term &. profitable relationships with customers.
As per Kaplan and Norton (2000), no strategy is complete without a strategy map. Looking into CRM, the strategic framework of CRM need to be very clearly defined before the implementation begins. The strategic framework of CRM is not established as a standalone framework rather finds its roots deep into the organizational strategic framework starting from the board room. …
The strategic framework of CRM is not established as a standalone framework rather finds its roots deep into the organizational strategic framework starting from the board room. The business strategies of an organization form the foundation of customer strategies, whereby the former is formed at the CEO &. board level comprising of business objectives comprising of strategies &. directions pertaining to organization wide competencies and the latter is formed at the marketing department level that use the business strategies to target market segments &. customers. The root of strategies can be established using the Balanced Scorecard mechanism developed by Kaplan &. Norton as shown in Figure 1.
Figure 1: Balanced Scorecard strategic framework (Kaplan and Norton. 1996)
First of all, the organization needs to have clearly defined Vision &. Mission statements pertaining to CRM. The next step is to define the strategic business goals of the organization that is in line with these statements. These goals should be focussed towards achieving unique positioning of the company in the markets &. in the perspective of the customers. For example, some companies may like to establish an image that they offer low cost products &. services whereas others may like to achieve an image of offering premium &. high profile products &. services at premium costs. Similarly, some companies may like to establish large market segments comprising of multi-domain areas whereas some may focus on thin market segments comprising of niche areas. Whatever be the positioning defined for the organization, the leadership team may like to establish corresponding CRM goals and then expand them into key CRM