The case is about the planning of customer relationship management. It highlights how customer relationship management systems can be implemented efficiently. The following facts are present in the case before Leonard resorted to massive CRM program in the two companies.
i. Outdated marketing technology platform
ii. Management’s failure to understand benefits of CRM. Executives fail to understand benefits associated with CRM. Instead, they question the value of long term CRM initiatives. They perceive CRM as unsustainable and costly.
iii. Product focus. Company attention was shifted to the product as opposed to the customer.
iv. Lack of agreement that CRM is a process and not a onetime activity.
As part of structural transformation, the company transformed from being product focused to customer focused. Leonard made the management understand the value created by CRM and communicated and sensitized the whole organization. Also, Leonard built a customer growth strategy upon which the implementation of the CRM program is based. Planning for growth by managers is basic for CRM implementation success. A strategic plan helps the organization be in position to reap the CRM benefits. However, departments should begin sharing customer information as this will constitute structural transformation.
Organization’s process transformation is of value as it facilitated the various organization’s departments to work together for effective service delivery and customer satisfaction. Cultural transformation on the other stressed employees change of attitude, thinking and of agreement that CRM is a process and not a onetime activity.
Leonard however needs to undertake use of new information and communication techniques for effective interaction with customers. This will lead to customer integration. This ensures that the information exchange between the organization and the customer is a positive experience.
In summary, Leonard’s CRM program was as follows.
i. Creation of enabling CRM foundation
ii. Evaluation of customer and organization’s performance
iii. Automation of marketing platform and push for customer intelligence to the frontline
iv. Understanding of customer strategies and dialogue in real times for efficient service provision
v. Management –customer collaboration.
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