Session 11

Question 1

What are the five key CRM processes identified by Payne & Frow?

Answer 1

Payne and Frow (2005) outline a cross-functional, process-oriented CRM model with five key processes:

Strategy Development Process
Value Creation Process
Multichannel Integration Process
Information Management Process
Performance Assessment Process

Question 2

Why is a strategic, cross-functional approach essential in CRM according to Payne & Frow (2005)?

Answer 2

A strategic, cross-functional approach integrates CRM across organizational functions, ensuring that CRM is more than just a technology solution. This alignment supports CRM goals, enhances customer experiences, and helps create long-term value for both customers and shareholders by making CRM a core part of business strategy rather than a siloed function.

Question 3

Explain the importance of the “Value Creation Process” in Payne & Frow’s CRM framework

Answer 3

The Value Creation Process is central to maximizing the CRM framework’s effectiveness. It involves identifying value for both customers (through co-creation and tailored offerings) and the organization (via customer lifetime value). This process seeks to optimize value exchange and retention, with a focus on maintaining and growing high-value customer segments.

Question 4

How does “Multichannel Integration” contribute to successful CRM, and what are the challenges associated with it?

Answer 4

Multichannel Integration is critical in providing a unified customer experience across all channels. This process translates strategic insights into customer interactions, ensuring consistency in value delivery. The main challenges include data integration across diverse platforms and maintaining a consistent customer experience across both online and offline channels.

Question 5

Describe the role of the “Performance Assessment Process” in CRM and its implications for organizations.

Answer 5

The Performance Assessment Process ensures CRM objectives align with broader business goals. It involves tracking shareholder outcomes and KPIs relevant to CRM, such as customer satisfaction and retention. This assessment can reveal gaps in CRM performance and guide future improvements. However, Payne & Frow note that traditional metrics may not adequately capture the cross-functional nature of CRM, suggesting the need for broader, strategic metrics.