Customer Relationship Management Report 2022

RUNNING HEAD: Customer Relationship Management
Kevin Patrick
Customer Relationship
Management

Customer Relationship Management 1
Contents
Introduction......................................................................................................................................2
Review of CRM Models..............................................................................................................2
Application of CLV.....................................................................................................................6
CRM Model used by Company.......................................................................................................7
CSR Strategies of Apple for Customer Engagement...................................................................8
Analysis of Automation utilized by Company................................................................................9
Advantages & Drawbacks of utilized Automation....................................................................10
Recommended CRM Programme..................................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

Customer Relationship Management 2
Introduction
The aim of the paper is to enlighten the reader with the information about the company Apple
and its customer relationship management strategies. Customer relationship management (CRM)
refers to the approach that is implemented by organizations to manage the interest of customers
in the business and to draw interest of potential customers as well. The customer relationship
management strategy makes use of information and then analyse of the customer activities and
helps the business to improve their position in the market. Use of customer relationship
management strategy helps the organization to specifically focus on customer retention activities
and drive sales and productivity for the company. (Das, and Mishra 2019).
Further, this paper will highlight the details about the customer relationship management
approaches applied by company Apple and the ways through which this strategy influences their
relationship with CSR activities and customer engagement. Advantages and disadvantages of
automation are also discussed in the report to help the company analyse effectiveness of the
CRM functions. The latter part of the paper provides recommendations to the organization to
implement effective strategies for smooth functioning.
Review of CRM Models
Customer relationship management involves the process of conducting the business functions by
making use of customer information in such a way that allows the business to fulfil the needs of
customer in a better way. There are three main types of CRM present which are strategic CRM,
operational CRM and analytical CRM. Strategic CRM is a core customer centric business
strategy that focuses on keeping the profitable customers in the business. This strategy focuses
on winning the right type of customers. (Charoensukmongkol, and Sasatanun 2017). Operational
CRM emphasize on automation of customer-facing actions such as marketing, customer service
and selling. Analytical CRM is the process where companies alter customer related information
into actions that is beneficial for the business.
The below is a list of the three CRM models majorly used by companies:

Customer Relationship Management 3
 IDIC Model: This model was developed by Pepper and Rogers Group as a blueprint for
the use of customer relationship management strategies. There are four stages in the
CRM model: Identify, Differentiate, Interact and Customize.
o Identify: this is the first stage of the model that analyses the customers of the
organization and works on collecting information about their interest in relation to
the products served by the company. This aspect helps the business to collect
information of customers like, name, age, address, purchasing behaviour/ history
at every point of contact across the company (Stanimirov, Zhechev, and
Stanimirova 2017). The objective of this stage of the company is to collect as
much information as the company can, to evaluate the behaviour of the consumers
in regard to the different products.
o Differentiate: this step of the model works on differentiating the target segment in
the market based on their current and projected lifetime value. CLV (Customer
Lifetime Value) refers to the total income that a customer is expected to spend
over a certain period - that is their ‘lifetime’ (Abbas, and Hafeez 2017).
o Interact: under the third stage of this model, the company gets to apply the CRM
objectives to interact with the customers. Once the organization has understood
the behaviour of the customers and categorized them based on their specifications,
the company can initiate relevant and efficient interaction with them. For