The Marketing Book 5th Edition

Strategy

development

process:

Business

strategy

!

!

Business vision

Competitive

Customer

strategy

!

!

!

Customer

choice

Customer

characteristics

Segment

Information management process:

Back-office

applications

Front-office

applications

Analysis

tools

IT

systems

Data repository

Multichannel

integration

process:

Salesforce

Outlets

Telephony

Electronic

commerce

Direct

marketing

Mobile

commerce

Performance

assessment

process:

Shareholder

results

!

!

!

Employee

value

Customer

value

Shareholder

value

Performance

monitoring

!

!

Standards

Metrics and

KPIs

Value

creation

process:

Value

customer

receives

!

!

Value

proposition

Value

Value

organization

receives

!

!

Acquisition

economics

Retention

Customer segment lifetime value analysis

Integrated channel management

Source: Payne (2002). Used with permission.

Integrating customer relationship management and supply chain management 491

can be difficult to achieve without a systematic
approach and it needs to be broken down into
processes or sub-processes.
Thestrategic framework for CRMpresented
in Figure 19.5 is based on the interaction of
five cross-functional business processes that
deal with strategy development, value crea-
tion, multichannel integration, information
management and performance assessment
(Payne, 2002).
These processes, which are discussed
below, make a greater contribution to organiza-
tional prosperity collectively than they can
individually, and must therefore be treated as
an integrated set of activities.

The strategy development process

Most companies today recognize that their
future depends on the strength of their business

relationships, and most crucially, their relation-

ships with customers. Before turning imme-

diately to a technology solution, managers need

to first consider CRM in the context of overall

business strategy. CRM must actively reflect

and reinforce the wider goals of the business if

it is to be successful. The strategy development

process therefore demands a dual focus on the

organization’s business strategy and its cus-

tomer strategy.

Business strategy

A comprehensive review of the business strat-

egy will provide a realistic platform on which

to construct the CRM strategy, as well as

generate recommendations for general

improvement. The organization needs to fully

understand its own competencies within a

competitive context in order to be able to

Figure 19.5 Strategic framework for CRM