A CRM model is a framework for how your company will manage customer relationships—from acquisition to retention.
The four most popular CRM models follow a similar flow: learning about your customers, grouping them, contacting them, and then using what you learn to tweak internal processes and optimize your approach.
The IDIC CRM model is named for its four steps. The process of identifying, differentiating, interacting, and customizing includes pinpointing and segmenting leads, personalizing content and communication for those segments, and optimizing your approach for future communications.
The model helps assess customer expectations and needs to calculate the potential value they can bring to your business. This helps your sales and marketing teams allocate time and resources to high-value, long-term customers.
Payne and Frow's Five Forces CRM model is also comprised of steps that help segment customers based on their potential long-term value and provide KPIs for engaging those segments. The steps include strategy development, value creation, multichannel integration, performance assessment, and information management.
This model also outlines four elements that must be established before a CRM can be successful.
Payne and Frow’s Five Process model is deeply rooted in strategy. The CRM gathers analytics and disseminates the resulting data into business learnings that can be used for optimization. This type of CRM involves a data-sharing process that connects your teams and gives them seamless access to customer data.
There are eight components to the QCI CRM model.
The last two components are what differentiate QCI from other models. Effect measurement involves analyzing performance to see how your teams’ work translates to sales, while customer experience reveals how they contribute to customer satisfaction. Both components can be used to better assess your teams’ performance and optimize for future customer interactions.
The CRM value chain model helps companies identify and develop valuable personalized solutions for customers. In this model, there are two stages.
The first stage focuses on customer identification and acquisition. This includes customer portfolio analysis, customer intimacy, network development, value proposition development, and relationship management. The second stage focuses on ensuring your teams—leadership, procurement, HR, and IT—have an established reporting structure and clear parameters around who handles what.
The main goal of this model is to merge an organization’s internal and external processes—essentially, the idea that your business is stronger when your teams are fully integrated. This ultimately creates more long-term value for customers, while generating more profit for your business.
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Beth Perry is a Senior Content Marketing Manager for Oracle Advertising and CX.