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Risk of brand erosion or dissipation if extended to unrelated areas
Payback horizon highly dependent on the rapidity of buildup of the installed base
Brands, which are valuable but intangible assets like customer relationships
For this model, the CRM systems must support international brand management as also localiza-
tion for identifying and developing opportunities in specific markets:
3.2.3.4 Platform Profit
This strategy demands maintenance and management of a user base of high-value customers
focused around its product platform. Such a group of committed customers can then be promoted
through up-selling and cross selling to higher-margin add-on solutions and services. The More
proprietary is the base product platform, the more powerful is this strategy as a profit-generating
mechanism. This strategy is characterized by
Comprehensive platform architecture and design standards
Established conformance programs for qualifying third-party coproducts
Comprehensive interface design preferably proprietary standards
A product/service portfolio that meets the needs throughout the Customer Life Cycle
(CLC)
Efforts to establish the standard industry-wide and achieve ubiquity
For this model, the CRM systems must cater to the company's standardized architecture and
interfaces for integrating best-of-breed solutions.
3.2.3.5 Innovation Profit
This strategy demands that companies remain in direct contact with the customers to dynami-
cally solicit feedback and also remain lean and agile to quickly reconfigure their business
operations and processes more suitable to the altered requirements or expectations. Successful
companies tend to become more risk averse, more formalized, more bureaucratic, more insu-
lated from the customers, and, finally, more lethargic in their responses to demanding circum-
stances. However, the most damaging factor is the widening gap from the actual customers:
direct feedback from customers is reduced, filtered, and often ignored. The twin forces of
direct customer contact and agile operations create potential for enormous profits. This strat-
egy is characterized by
Organizational design that emphasizes direct customer contact and agile responsiveness
Smaller autonomous and agile strategic business units (SBUs)
Early positive cash flow, but volatile P/L scenarios
Unalloyed direct feedback from the customers
High-performance-based rewards and compensation resulting in highly responsive sales
operations
For this model, the CRM systems have to focus on becoming highly responsive to the top 20% of
the customer including customized requirements, rapid implementations, and deployments.
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