Which of the following actions typically would be the first step in implementing the philosophy of customer relationship management?

Which of the following actions typically would be the first step in implementing the philosophy of customer relationship management?

A. Creating a customer-centric organization

B. Developing a map of the customer segments

C. Documenting the objectives for implementation

D. Selecting an information technology solution

View Answer

Answer: A

Explanation:

Implementing customer relationship management (CRM) begins with establishing a customer-centric culture within the organization.

The steps involved are:

Creating a Customer-Centric Organization: This step involves shifting the company’s focus to prioritize customer needs and preferences. It requires aligning the company’s mission, values, and strategies around customer satisfaction and engagement.

Developing a Map of the Customer Segments: Once the organization is customer-centric, it can then identify and segment its customer base to better understand different needs and tailor approaches accordingly.

Documenting the Objectives for Implementation: Clear objectives must be set to guide the CRM implementation process. These objectives ensure that all efforts are aligned and measurable. Selecting an Information Technology Solution: The final step is choosing the right technology to support CRM activities. This includes selecting software that can manage customer data, track interactions, and provide insights for continuous improvement.

Reference: Payne, A., & Frow, P. (2005). A Strategic Framework for Customer Relationship Management. Journal of Marketing, 69(4), 167-176.

Buttle, F. (2009). Customer Relationship Management: Concepts and Technologies. Routledge.