Question

Explain why CRM strategies are iterative processes.

Answer 1

CRM is a business strategy designed to optimize profitability, revenue and customer satisfaction. It can sound redundant to say that enterprises need a strategy for a business strategy, but an important point exists here. Because CRM is a business strategy, it will evolve differently at different enterprises depending on what strategy is developed. Thus, enterprises need to determine what they want their organization to look like once CRM is in place. to achieve CRM, enterprises need to look at four distinct, but equally important, areas: Processes, Tactics, Technology, and Skill Sets. when enterprises realize that these five areas all are connected to each other (i.e., technology can drive strategy; processes impact skill sets; tactics can be developed to utilize technology). As such, the interplay of the five areas will be iterative. This means that successful CRM practitioners tend to keep updating all five areas as circumstances change