Customer Relationship Dynamics

Section 3

Customer Relationship Dynamics

Customer Relationship Management

Customer Relationship Dynamics

Introduction to Customer Relationship Dynamics

Contents

Key Customer Relationship Management Principles 1. Customer Relationship Management Terms and Definitions .........................................1 2. Key Principles of Customer Relationship Management...................................................5 3. The Value of Customer Satisfaction and Loyalty ..........................................................10 4. The Call Center's Role in Customer Relationship Management ..................................17 5. Customer Relationship Management in Government and Nonprofit Organizations ...22 Defining and Segmenting Customers 6. Drivers of Customer Expectations ................................................................................25 7. Identifying and Quantifying Customer Expectations ...................................................28 8. Customer Valuation Alternatives...................................................................................34 9. Customer Profile and Segmentation Strategies ..............................................................41 10. The Call Center's Role in Customer Segmentation ....................................................47

Exercises............................................................................................................................51 Reference Bibliography .....................................................................................................56

Call Center Customer Relationship Management Study Guide ? Version 2 ? Copyrighted to ICMI, Inc., 2002

Customer Relationship Dynamics

1. Customer Relationship Management Terms and Definitions

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Key Points

? Customer relationship management (CRM) is the process of holistically developing the customer's relationship with the organization.

? Customers include individuals, households and organizations which have in the past (or may in the future) interacted with your organization.

? Customers may be external (i.e., not a part of your organization) or internal (i.e., members of your organization to whom you provide service).

? Relationships consist of a series of contacts between the customer and the organization. In another sense, relationships refer to the level of loyalty and commitment that the organization and the customer have to each other.

? "Business rules" refers to various software (or manual) controls that manage contact routing, handling and follow up.

? Contact management systems are business applications that enable and track each interaction with the customer.

Explanation

Customer relationship management is both deceptively simple and infinitely complex. The roots of managing customer relationships are as old as human interaction, while the technology used to deploy it is often leading (or even bleeding) edge. When fully understood and strategically implemented, a renewed focus on the customer relationship can transform an entire organization, as well as vault the beleaguered call center into an unprecedented position of importance. Today's call center managers must be prepared to guide their organizations through this transition, and then to lead these customercentric call centers of the future.

Customer relationship management (often referred to as the acronym CRM) may be defined as the process of holistically developing the customer's

Call Center Customer Relationship Management Study Guide ? Version 2 ? Copyrighted to ICMI, Inc., 2002

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