Strategy-Centric CRM Goals

Not long ago we reviewed the three definitions of CRM that most companies seem to follow according to Dr. Vince Kellen , a professor at DePaul University. To recap these definitions: Technology Centric – Focuses on technology that improves relationships.

Customer Lifecycle Centric – Focuses on how to market a current product better. Strategy Centric – Focuses on how to use your CRM model to develop business strategy. According to Dr.

Kellen, the definition that must companies follow should be the strategy centric CRM, because it is the only way to develop a long term, successful strategy in the current market.

One of the primary benefits of the strategy centric value model is that it is the only way to ensure that your products and business strategies truly have any value to the customer. Technology centric simply focuses on making purchasing easier and more streamlined, but doesn’t ensure that the customer is receiving any value. Customer life-style centric tries to give the appearance of value without necessarily bringing that value to the customer.

Only strategy centric focuses on actually finding what brings the customer value, It focuses your company on the needs that the customer, so that you’re forever focusing your strategies on bringing the customer value. That is the best way to ensure you’re given a long term competitive advantage, rather than simply spending your time convincing customers your product is of value to them. Secondly, focusing only on technology has its limitations.

The same technology you use to make the customer experience better is also going to be used by your competitors. Once everyone is using the same technology, it will no longer serve to give your company its competitive advantage. You’ll need to look for ways to bring more value anyway, otherwise you’ll be left behind.

It can be tough for some companies to conform to the idea of customer first, product(s) and marketing second, because most companies want to believe that what they offer is right for the customer. But when it comes to the long term outlook of a company, learning what the customer’s needs are and using that understanding to enhance your business may easily be the best strategy to continue competing in the current market, as it’s the only one that recognizes that actually bringing the customer value may be the key to long term success. Related Blog Part 1