Putting the Relationship Back Into CRM Harvard Case Solution & Analysis

Many managers believe that the way to capture value through relationship marketing is to focus on the "good" clients and get rid of "bad." But there is much more to the best practice relationship management than maximizing revenues for individual clients, and minimizing the cost to serve. The authors studied people who were in developing existing and terminate relationships with companies and identified three important ways in which the current practice of CRM is not possible. First, companies forget that their relationships not only with customers but also with the people who live in a rich and complex life. Second, because the relationships are different shapes and sizes, the company must be aware of the requirements of different types of relationships for our ideals. Finally, companies do not recognize that the relationship is two-sided, and that these relations are developing with every interaction. These three defects, illustrated examples, led to the identification of three principles: Meet with customers as people think not only loyalty, and to take responsibility for the relationship, which are two-way. The authors offer guidelines for companies that want to improve the overall value of their customer relationships. They suggest that the first directory of companies and analyze the types of client relationships they have, then develop a portfolio of relationships, optimization of those who have it, and to determine what new focus. Companies then need to determine which of the indicators used to monitor the status and performance of these relations, adjusting as they go. For most companies, the transition to the approach will require a significant change in thinking and practice. Managers will need to expand the type of data collected by their systems CRM, CRM-setting solutions for specific types of relations is the management and training customer staff are sensitive to the relational keys they send and receive. "Hide
by Susan Fournier, Jill Avery Source: MIT Sloan Management Review 12 pages. Publication Date: April 1, 2011. Prod. #: SMR385-PDF-ENG

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