CRM: A Technological Perspective

Summary
This report documents the results of a project that was concerned with determining the role that
different technologies play in the implementation of CRM, a business phenomenon relating to the
management of customer relationships.
The report considers both technical and business issues, and the three communication channels which
are currently the most used for providing CRM are tested against each other by assessment against a
model constructed on the basis of the various stages of a customer’s relationship with a firm,
concluding with a solution to the problem,
“What role does technology play in the effective implementation of CRM?”
There is also an investigation into the future of mobile communications devices e.g. mobile phones
and PDAs. In recent times, such devices have advanced rapidly, both in terms of technological
capabilities, and in terms of usage. This trend shows no sign of altering in the near future; indeed it is
the case that a whole new generation of mobile communications is emerging upon the market.
As a result, there is a potential for the implementation of CRM to be extended to a whole new level,
such are the possibilities for continuous communication across different media. This report
investigates the likely characteristics of this marriage of technology and customer relationships, and
using the evidence of previous events in this field, and current business and computing knowledge,
provides a solution to the problem,
“What impact will emergent mobile technologies have upon the future of CRM?”

Contents
Section Page
1 Introducing the Problem 1
1.1 Aim 1
1.2 Existing Solutions 1
1.3 Minimum Requirements 1
1.4 Possible Enhancements 1
1.5 Methodology 2
2 Background Research 3
2.1 CRM – A Definition 3
2.1.1 Customer Relationship Management 3
2.1.2 Customer Relationship Marketing 4
2.2 CRM and Technology 5
3 Modelling the Business Environment 7
3.1 Customer Value 7
3.2 Market Segmentation 7
3.3 Segmenting for CRM 8
3.3.1 Type of Customer 9
3.3.2 Technologies Available to Customer 10
3.3.3 Nature of Customer’s Activities 10
3.4 Stages of a Customer Relationship 11
3.4.1 Suspect to Prospect 11
3.4.2 Prospect to 1st Time Customer 12
3.4.3 1st Time Customer to Repeat Customer 12
3.4.4 Repeat Customer to Client 13
3.4.5 Advocate Creation 14
3.4.6 Customer Retention 14
3.4.7 Customer Re-acquisition 15
4 The Role of Technology 16
4.1 Direct Mail 17
4.1.1 Features 17
4.1.2 Drawbacks 18
4.1.3 Life Cycle Penetration 19
4.2 Telephony 20
Paul Sadler CRM: A Technological Perspective 2003/2004
iv
4.2.1 Features 20
4.2.1.1 Contact Centre Representative 21
4.2.1.2 Automatic Call Distribution 22
4.2.1.3 Interactive Voice Response 23
4.2.2 Drawbacks 23
4.2.3 Life Cycle Penetration 24
4.3 Internet Tools 26
4.3.1 E-mail 26
4.3.2 World Wide Web 26
4.3.2.1 Self Service 27
4.3.2.2. Data Acquisition 29
4.3.2.3 Collaboration 30
4.3.3 Drawbacks 31
4.3.4 Life Cycle Penetration 32
4.4 Recommendations 33
4.4.1 Front to Back Integration 33
5 Emergent Mobile Technologies 36
5.1 Features 36
5.1.1 Remote Positioning 37
5.1.2 Self Positioning 37
5.1.3 Channel Integration 38
5.1.2.1 Mobile Device Evolution 38
5.1.2.2 Third Generation Features 39
5.2 Drawbacks 40
5.3 Life Cycle Penetration 41
5.4 Conclusion 42
6 Evaluation 44
6.1 Changes Since Mid Project Report 44
6.2 Changes to Minimum Requirements 44
6.3 Critical Success Factors 45
6.3.1 CSFs: Minimum Requirements 45
6.3.1.1 Demonstration of Understanding of CRM 45
6.3.1.2 Development of Testable Model of Effective CRM 46
6.3.1.3 Critical Assessment of Existing CRM Methods 46
6.3.1.4 Investigation of Emergent Mobile Technologies 46
Paul Sadler CRM: A Technological Perspective 2003/2004
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6.3.2 CSFs: Enhancements 47
6.3.2.1 Enhancement of Analysis of Current CRM Methods 47
6.3.2.2 Analysis of Emergent Mobile Technologies 48
6.4 Extensions 48
6.5 Summary 49
Bibliography 50
Appendix A: Personal Reflection 52
Appendix B: Supervisor Authorisation of Removal of Electronic Presentation

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