Value Chain

CRM supports you to perform the following activities to identify the value chain of your clients:

Client portfolio analysis – The first step of the value chain model is to analyze your clients to identify the clients that create most value for your business. This analysis helps you understand your clients so that you can better address their needs and expectations and develop strategies to maximize their lifetime value.

Client intimacy -- The next step is to engage with the client and build on the original database. At each touchpoint, you should collect data on the interaction to better understand and serve your client. The better you know your client, the better that you can adjust your service and the more likely that you are able to retain their business over the long term.

Network development -- A business network includes all people and entities involved in the value chain, including investors, partners, suppliers and customer service, etc. The goal is to use your customer data to inform the processes at each level of your network so that the entire system works together to optimize your client’s experience.

Value proposition development -- Armed with your client information and interaction data, you can create value for your target customers. The idea is to shift the focus from the product to your service and to reduce process costs to create more value for your client.

Relationship management -- The last step of the value chain model is to manage your client lifecycle. This process involves evaluating your business processes and organizational structure to manage acquisition, retention, and client development.

Support stage

There are five supporting conditions necessary to effectively implement the strategic processes of the primary stage:

  • Leadership and culture
  • Procurement processes
  • HR management processes
  • IT/data management processes
  • Organization design

Creating and developing these underlying conditions will support a successful  CRM value chain implementation.

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