What is a CRM model? Polular CRM models (2024)

What is the CRM model?
CRM(Customer Relationship Management) is customer relationship management, both in terms of business relationships and interactions with potential customers. In the current 4.0 technology era, many businesses are deeply interested in CRM.

CRM model is a solution framework that helps businesses manage throughout from building relationships with customers to retaining customers. Mastering and proficiently applying it will help businesses better understand existing and potential customers and easily solve their problems. From there, businesses can build trust and create long-term customer loyalty for the company.

The CRM model outlines the steps an organization needs to take to make customers love, trust, and grow that trust. The benefits that businesses receive when implementing it are huge - not only help increase sales but also improve close coordination between departments. Key benefits of the CRM model include:

• Build quality customer relationships as well as increase their loyalty to the business.
• Understand both what customers want and their needs. From there, businesses can bring customers the most unique experience.
• Build a competitive advantage for your business ahead of other competitors.
• Stabilize sales for businesses.

Polular CRM models

There are 4 popular CRM models that businesses should prioritize to learn and apply: IDIC CRM Model, QCI CRM Model, CRM Value Chain Model and Payne & Frow's 5-Step Process Model. Depending on the specific needs and characteristics, each business will have a different model choice for themselves. Here are some salient features of the four popular CRM models mentioned above.

IDIC Model

This is a great solution framework to help businesses discover and utilize both customer needs and values. From there, businesses have a foundation for interacting with each customer.

The IDIC CRM model was developed by Peppers and Rogers in 2004. IDIC is an acronym for Identify individual customers (I) – Differentiate customers (D) – Interact with customers (I) and Customize for customers (C). individual customers – Differentiate customers – Interact with customers and Customize for each customer:

• Identify individual customers (I)– Identify individual customers: Who are they, how old are they, what occupations, habits, interests as well as wants and needs, etc.
• Differentiate customers (D)– Distinguishing customers: The collected information will help businesses distinguish customers. Each customer has different values ​​to the business.
• Interact with customers (I)– Interact with customers: Businesses need to be equipped with in-depth knowledge of customers. As a result, businesses can demonstrate to customers that they have understood their needs on a personal level.
• Customize for customers (C)– Customize for each customer: Based on their understanding of customers, businesses can customize the provision of products and services to most accurately meet the wants and needs of customers. surname.

QCIModel

The Quality Competitive Index Model (QCI) CRM model is described as a customer management modelnot a customer relationship model. Businesses need to understand:

• The external environment has a certain influence on both customer experience and business planning.
• Customer management activities greatly affect the customer experience, because this activity is a series of processes of approaching, selling, retaining or winning back customers.
• Of course, customer experience will have the opposite effect on customer management. Measuring, summarizing and analyzing the business's customer experience will greatly help in making detailed plans and reasonable strategies for each customer.

CRM value chain model

The CRM value chain model is a five-step process focusing on strategic customers. These strategic customers will be more focused by businesses, because they bring more revenue to businesses. The CRM value chain model will help businesses and strategic customers have a more quality and long-term relationship.

• Customer portfolio analysis: Helps identify strategic customers that bring more value to the business.
• Create intimacy with customers: Learn more deeply what your strategic customers want to be able to serve them better.
• Network development: Make customers satisfied with a good network of suppliers, manufacturers, distributors, retailers, etc.
• Value proposition development: Combining human resources with good products and services to bring value to customers.
• Customer relationship management: From the above foundations, businesses need to continue to maintain and develop long-term customer relationships.

Although the CRM value chain model focuses on strategic customers that bring in more revenue, it does not encourage businesses to abandon other customers. The company should consider these strategic customers as “most important”, other customers are still customers and need appropriate service.

Payne & Frow's 5-Step Process Model

Payne & Frow's 5-Step Process Model explains the 5 core processes of customer relationship management: Strategy Building, Value Creation, Omnichannel Integration, Performance Evaluation, and Management information management.

• Building strategy: Including business strategy and customer strategy. Business strategy will determine the direction as well as the way of competition of products and services in the market. The customer strategy will analyze and synthesize the characteristics of the target customer.
• Value creation: The value that customers and businesses bring to each other will help organizations take measures to retain customers.
• Multi-channel integration: The synchronous and close coordination between departments and divisions in the enterprise together. From there, the business ensures a seamless experience for customers.
• Evaluating operational efficiency: Businesses need to have a clear assessment of customer satisfaction, business revenue, working process, customer service of departments, departments, etc. based on certain standards.
• Information management: Effective information management by businesses will greatly support other steps in the process. With the amount of data effectively managed, the company can rely on it to analyze and make appropriate plans, as well as re-evaluate the effectiveness of each activity.

Using CRM tools to support the CRM model

In managing customer relationships, businesses need to try to fully meet the needs and desires of customers to stick with and support the company. Managers must ensure the arrangement of information, customer data, data management and business activities to attract and retain customers, and provide the best services and products.

In addition, analyzing data and building reports and forecasts is also a necessity when businesses use CRM models. Therefore, administrators need to learn, choose and apply a CRM system that is suitable for the size of their business and the CRM model they are using. Currently on the market there are many optimal CRM tools, like HubSpot, that can meet the needs of most businesses, helping them solve the CRM problem.

Conclusion

There are 3 ways that businesses can use CRM tools to support the CRM model: Organize customer information, Access data easily, Work with marketing and support teams. In short, understanding what a CRM model is as well as choosing an appropriate model for your business will greatly contribute to building relationships, creating trust, serving as well as retaining customers in the long run. long for business. From there, businesses will gain a lot of benefits, but the most important thing is to stabilize sales.

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