According to Francis Buttle (2009), there is four type of CRM as follows:

Type of CRM:

Strategic
Is a core customer centric business strategy that aims at winning and keeping profitable
customers?
Operational
Focuses on automation of the customer facing processes of the business, such as selling,
marketing, customer service
Analytical
Focuses on the intelligent mining of customer related data for strategic or tactical
purposes
Collaborative
Applies technology across organizational boundaries with a view to optimizing company,
partner and customer value

IDIC MODEL

According to IDIC Model which developed by Peppers and Rogers, Consultancy Firm,
companies should take four actions in order to build closer one-to-one relationships with
customers:

IDENTIFY who your customers are and build a deep understanding of the
customer

DIFFERENTIATE your customers to identify which customers have most value

now and which offer most for the future

INTERACT with customers to ensure that you understand customer expectations

and their relationships with other suppliers or brands

CUSTOMIZE the offer and communications to ensure that the expectations of

customers are met

THE QCi MODEL

Based on the QCi Model, Customer management activities are contain of Aqcuisition,
Penetration, Retention the Customer.

CRM VALUE CHAIN

CRM processes are to understand customer requirements, Meet customer expectations,
and Deliver customer value. Steps to develop this CRM Strategy are:

Find the segmentation

Profitability for each segment
Make a goal for each segment
Make the strategy for each segment
In development and implementation of a CRM strategy, there are five key steps which are
modelled as figure below:

Customer portfolio analysis (CPA) and customer intimacy (CI) are primarily analytical
activities, which customer portfolio analysis is segmentation and customer intimacy is
customer needs analytics. Network development is step how to partner marketing funds.
And the last, managing the customer lifecycle means campaigns and events.

Customer Portfolio Analysis

Classify customers into different groups that are then managed on a portfolio or collective
basis, which different customer have different services so company can increase the profit
performance and maximize resource effectiveness. In other words, company make
segmentation of its customer. Here is Market Segmentation Process:

1.Identify the business you are in

2.Identify relevant segmentation variables
3.Analyze the market using these variables
4.Asses the value of market segments
5.Select target market(s) to serve

Customer Intimacy

The purpose of customer intimacy is to get to know customers better so that more
intelligent CRM decisions can be made.

Network Development (SCOPE)

Major Forms of Network are Supplier Networks and Distribution Networks. But actually,
SCOPE consist of Supplier, Customer (belong to the focal firms), Owner and Investor,
Partners, Employee. Management in networks is both about managing individual
relationships and managing clusters of relationships. Partner in value delivery are agents,
brokers, management contractors, consortia, franchisees, licensees

Value Proposition Development

Value is the customers perception of the balance between benefits received and sacrifices
made to experience those benefits.

Value = Benefits / Sacrifices

Three major types of sacrifice have been identified: money, search and psychic costs.
Companies can offer improved value to customers by creating and delivering better
solutions to customers problems.

The sources of customer value are represented by what marketers call the marketing mix.
These are the 4Ps: product, price, promotion and place. In the services environment, the
4Ps are supplemented by three additional Ps: process, physical evidence and people. In
the B2B environment, value propositions have long been customized. Customization is
now emerging as a powerful force in the B2C environment too. Any of the 7Cs can be
customized.
 Management can create additional value by their management of the 7Ps. For example,
product innovation, branding and productservice bundling are ways to create additional
value. Similarly, service quality (RATER) improvement programmes, service guarantees,
service-level agreements (SLA) and service recovery programmes may be seen as value
adding.

Manage the Customer Life Cycle

The customer lifecycle has been collapsed into three major management activities:

Acquisition: acquiring new customers

The acquisition of carefully targeted customers or market segments
Retention: retaining existing customers
The retention and development of strategically significant customers or market segments
Development: developing customer value
The continuous development and delivery of competitively superior value propositions
and experiences to the selected customers
These major management activities also are the strategic goals of CRM.

In B2B Prospecting, First, find the leads, and then qualified them based on: Do the leads
need our products? Do they have ability to pay? Is the lead authorized to buy? If all yes,
leads become prospect.

Customers to be retained are customers who have high lifetime value (High volume
customer, Inspirations or door openers customer), highly committed customers, and
recently acquired customers. Strategies for Customer Retention can be in negative or
positive one.

Negative retention strategy:

Lock the customer in by penalizing their exit from a relationship
Involved high switching cost for customer they feel being trapped
Positive retention strategy:
Reward a customer for remaining in a relationship
Loyalty schemes
Customer clubs
Sales promotion
Strategies for customer development are:

Cross sell by Selling additional products and services. In means not only sell 1 product.
Up sell by Selling higher value products and services or add more products by making
different size of products

SUMMARY
CRM is the core business strategy that integrates internal processes and functions, and
external networks, to create and deliver value to targeted customers at a profit. It is
grounded on high-quality customer data and enabled by information technology.

The main strategic goals of CRM are:

Develop relationship to make differentiation

Customer retention
Continuous in giving competitive advantages
Critical Success Factors (CSF) to CRM consists of:

1.Customer Portfolio Analysis (CPA)

2.Customer Intimacy
3.Network (SCOPE)
4.Value Proposition Development
5.Managing Customer Life Cycle
Acquisition
Retention loyalty program
Development cross-selling, up-selling
By knowing customer needs, company is allowed to identify new business opportunities
and create service that will provide competitive advantage and differentiation. But these
primary stages must supported by Leadership and Culture, Technology (Data and IT),
People, and Processes.

REFERENCES

Francis, B. (2009). Customer Relationship Management, Concepts and Technologies.

Amsterdam; London: Butterworth- Heinemann