Gartner CRM model and building relationships with customers
Word count: 3044 words
PURPOSE: The aim of this briefing document is to assess the importance of all eight Gartner building blocks for the existence of successful CRM. This is particularly important as one of the CRM definitions states that the customer relationship management strategy (CRM) represents in fact the process of regulation of all the aspects of the company's synergy with its prospective customers, sales and service (Buttle and Maklan, 2015). In brief, that is reason why any kind of fragmentation of its functions should be avoided and the latter is presented within the case of Firmdale Hotels. Additionally, the Gartner CRM model and the activities where customers are personally and repeatedly involved are given priority. Also, its purpose is to describe how the productive usage of CRM software establishes information, providing value proposition for a given client; the transition of assets also helps to fulfill customer needs in a better way. Firmdale Hotels like many other organizations need to be able to include all the “eight building blocks” in their everyday activities.
BACKGROUND: Buttle and Maklan (2015) highlight the reason why the business needs CRM application; simply to provide insight into and to make better the company's relationship with its customers by combining the whole customer interaction onto one complete picture. Supporting the abovementioned Gartner created the map called "the eight building blocks of CRM" in 2002 (Gartner, 2007). Its main objective was to assist the companies comprehend the whole picture, as well as to analyze its current market position and strategies to be taken in future (Gartner, 2007).
Furthermore, the main task of the Gartner CRM model was to establish and retain a balance between the demands of the company and the customer. Also, it gives companies the ability to perceive their current situation to the fullest possible extent and to take relevant measures for its improvement. In turn, that type of values is attractive for customer targeting and for ensuring that enterprise stands out from its opponents (Gartner, 2007).
Diagram 1. Eight building blocks of Gartner's CRM model
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CURRENT SITUATION: The first building block of the Gartner CRM model is the CRM vision that outlines in what way one customer-focused enterprise should look like (Gartner, 2007). Recent study (Buttle and Maklan, 2015) expresses strongly the idea that the organizations need to possess the ability to deal with and to coordinate the interactions between customers and the company across diverse channels and departments. The CRM vision's significance to the company is related to its value proposition, desired customers, benefits of the CRM and customer experience to be provided (Gartner, 2007).
The second building block is strictly connected with the CRM strategy that role in general is to introduce and preserve a customer base for the company (Gartner, 2007). Hence, the CRM strategy helps the company to increase the sales force productivity, while at the same time it decreases the already risen up sales costs (Buttle and Maklan, 2015).
Third comes the customer experience that poses the question why such a little value is being provided to customers (Gartner, 2007). As Worthington and Britton (2014) state the CRM system collects, concentrates and dissipates the information necessary for the market, especially on part of the customers. However, the latter also need to be told about recent company's development and innovations (Gartner, 2007).
Fourth is the cooperation within the organization or the organizational collaboration incorporating the organizational structures, incentives and employees' skills and behaviors (Gartner, 2007). Thus, in order to optimize the CRM work within any organization all of the above-mentioned need to be included in this framework (Gartner, 2007).
Fifth, the CRM processes are what enterprises often fail to recognize (Gartner, 2007). Nowadays, the CRM processes aim at intense deepening of the customers' knowledge and as a consequence they sharpen the relationship between the customers and the company (Buttle and Maklan, 2015). In brief, they aim at discovering what processes are significant for the customer (Gartner, 2007).
Sixth, the CRM information helps the company transforms itself into customer-oriented one (Mullins and Dosser, 2013). The most important thing about it is to properly obtained, stored, investigated, dissipated and implement through the enterprise. In fact one of the most important things related to it is its quality within the context of multiple, shattered databases and systems (Gartner, 2007).
Seventh, the CRM technology is included in only one of the Gartner eight building blocks, diminishing at this way the importance of regarding CRM as a business strategy (Gartner, 2007). As previously mentioned most enterprise CRM technology bases are shattered and multiple in number (Gartner, 2007). Moreover, they need to be unified and made able to interoperate. On the contrary, one of the most prominent problems is that today a great number of CRM strategies are prevailed over by technology, as well as by the strategic and organizational components of the CRM (Mullins and Dosser, 2013).
Eight, the CRM metrics represent the measurement of success, related to the renowned processes and the importance of altering employees behavior (Gartner, 2007). Thus, CRM metrics should be an integral part of the CRM strategy (Gartner, 2007). Their main purpose is not only to investigate the connecting points between the different levels within the company, but also to avoid complexity in the internal and external structure (Gartner, 2007).
CRM AS A BUSINESS STRATEGY: Several studies (Buttle and Maklan, 2015; Mullins and Dosser, 2013; Gartner, 2007) express firmly the idea that one excellently developed CRM strategy should focus on the entire range of business activities of the company, as well as to forge good relationships with customers and boost the company's potential. Thus, the fragmentation between the Gartner "eight building blocks" should be avoided and customer-satisfying process should be fostered (Gartner, 2007).
In addition, CRM, seen as a business strategy will help any company to maximize:
- interactions and
- customer satisfaction (Gartner, 2007).
The concept of CRM seen as a business strategy is criticized as not being entirely accurate and open to alternative interpretations (Worthington and Britton, 2014). In contrast, it implies the idea for the “relentless focus on customer” (Gartner, 2007) as a means for avoiding the fragmentation. Adopting CRM and implying it as a business strategy is due to the ability of the companies to examine the different issues within their full extent. Despite the fact that the vast number of CRM initiatives suffer from lack of focus on the organization - their main point for achieving value for customers, so as to establish mutually fruitful relationships was achieved (Gartner, 2007).
CRM as a business strategy highlights the fact that inspecting business’ current position in regard to customers is an attempt to prevent their dissatisfaction (Gartner, 2007). A couple of researches on the subject (Buttle and Maklan, 2015; Mullins and Dosser, 2013) expressed strongly contradictory views either for or against the defining metrics. However, the embracement of CRM strategy needs to be monitored by them. Also, via the specification of the customer infrastructure required a priority to certain direction will be delivered (Gartner, 2007).
TRUE CRM: In order to be able to avoid the usage of fragmented CRM approaches any company should implement true CRM. For Gartner (2007) this is a company initiative aiming at:
- managing customer value and commitment;
- putting company's capabilities in order to obtain those goals.
Hence, the true CRM unifies the "eight building blocks" of the Gartner CRM model. Moreover, it provides any company with three essential advantages:
- first, the technology effect on employees - each staff member will be able to classify its documents, contacts and activities (Buttle and Maklan, 2015);
- second, the individualization tool - especially in marketing activities (Mullins and Dosser, 2013);
- third, enhance the synergic potential of any company - ability to transcend the functions of barriers and locations (Buttle and Maklan, 2015).
The true CRM details the different initiatives carried out by enterprises in order to manage value of customers and to adopt all the relevant capabilities so as to achieve the desired goals (Gartner, 2007). As a result, in practice it is difficult not to report the fact that true CRM demands a stable vision and strategy, in collaboration with supportive set of incorporated initiatives in the field of customer experience, processes, collaboration, technology and most importantly, metrics (Gartner, 2007).
EVALUATION: A successful CRM system cannot exist without all "the eight building blocks" of Gartner CRM model. This is particularly important as one of the CRM definitions states that the customer relationship management strategy (CRM) represents in fact the process of regulation of all the aspects of the company's synergy with its prospective customers, sales and service (Buttle and Maklan, 2015). Also, it gives companies the ability to perceive their current situation to the fullest possible extent and to take relevant measures for its improvement. In turn, that type of values is attractive for customer targeting and for ensuring that enterprise stands out from its opponents (Gartner, 2007). In brief, that is reason why any kind of fragmentation of its functions should be avoided and the usage of true CRM should be fostered. The briefing document concludes that one excellently developed CRM strategy should focus on the entire range of business activities of the company, as well as to forge good relationships with customers and boost the company's potential. In my opinion, Gartner CRM model main objective was to assist the companies comprehend the whole picture, as well as to analyze their current market position and strategies to be taken in future (Gartner, 2007). It inevitably, helps them build long-lasting relationships with their customers by collecting, concentrating and dissipating the information necessary for the market, especially on customers' part. Hence, in modern CRM systems fragmentation is completely avoided, as all basic aspects of the enterprises’ activities are being covered. I also need to make suggestions for further research.
Creation of value by adopting aspects of the everyday business activities - the Gartner CRM model
BACKGROUND: In order to have the greatest chance of beneficial implementation of the Gartner CRM model and the resulting from it CRM systems, any company in any economic sector is in need of the correct mix of people, processes and technology (Buttle and Maklan, 2015). Simply put, its success depends on the adoption of productive marketing mix and of the understanding, especially on time of the competitors' marketing mix strategy (Mullins and Dosser, 2013). Hence, the CRM system assembles and distributes the information necessary about the market, specifically on customers' part. In brief, the creation of value lies within the evasion of fragmented CRM approaches and usage of all the indispensable elements of the Gartner CRM model, necessary to coordinate activities and efforts (Gartner, 2007).
Moreover, the successful adoption of CRM strategy provides companies with the opportunity to amplify customer value and to secure customer satisfaction (
Worthington and Britton, 2014). Having in mind the fact that the participants in this process are the real customers and the anticipated by them value, the CRM system affects the whole company (Buttle and Maklan, 2015). In turn, more and more companies are adopting it, registering long-lasting and advantageous relationships with customers, resulting in turn in more accurate determination of the company’s performance (Gartner, 2007).
- Quote paper
- Silvia Stamenova (Author), 2018, Gartner CRM model and building relationships with customers, Munich, GRIN Verlag, https://www.grin.com/document/426240