Differences in Conceptualisation of CRM

Although many agree on the business processes associated with CRM, there is some disagreement as to how CRM should be conceived. Zablah, Bellenger and Johnston (2004) identify over 40 definitions and determine that these variously view CRM as a process, a strategy, a philosophy, a capability and a technology. Payne and Frow describe the different perspectives of CRM on a continuum spanning a technology focus, a process (solutions) focus, and a strategy focus. Payne and Frow’s CRM continuum is shown below.

CRM as a strategy

According to Payne and Frow (2005), unless CRM is first considered from a strategic perspective its value to an organization is reduced. The strategy literature identifies that generating value from customers is a strategic quest (Porter, 1985; De Wit and Meyer, 2014; Grant and Jordan, 2015). CRM strategy can be seen to relate to business strategy in that it is concerned with understanding customers and building profitable relationships with them (Payne and Frow; Lassar, Lassar and Rauseo, 2008). In keeping with perceiving CRM along a continuum (Payne and Frow), a key element of strategy is considered to be the processes developed (De Wit and Meyer, 2014).

CRM as process

Zeynep Ata and Toker (2012) propose that CRM is a macro-level process with numerous sub-processes. However, they suggest that more understanding of CRM sub-processes are required. "The generally accepted view that CRM is a macro-level process, i.e. a highly aggregated one, inherently calls for the need for delineating CRM's domain by defining and analysing the micro-level processes or sub-processes that it comprises" (Zeynep Ata and Toker, p.504).  

CRM processes are discussed in the literature. For example, Srivastava, Shervani and Fahey (1999) describe CRM as the processes concerned with identifying customers, creating customer knowledge, building customer relationships and shaping their perspectives of the organisation and its products. Reinartz, Krafft and Hoyer (2004) consider CRM processes to separately relate to functional practice, customer-facing practice and company-wide practice. They propose that the process for each should be conceptualized differently. CRM related processes are seen to be made up of activities such as performance measurement (Payne and Frow, 2005), call planning (Moutot and Bascoul, 2008) and customer segmentation (Lambert, 2009). 

CRM as a technology

To some, CRM is a technology. Shoemaker (2001, p.178) describes CRM as “The technology that blends sales, marketing and service information systems to build partnerships with customers”. To Zoltners, Sinha and Zoltners (2001, cited in Hunter and Perreault, 2007) CRM is the use of technology to manage customer interactions and transactions. Sharma and Sheth (2010) identify CRM as a type of sales force technology deployed to enable salespeople and marketers to become more effective and efficient in selling to buyers.

“The technology that blends sales, marketing and service information
systems to build partnerships with customers” - Shoemaker, 2001

Thanks for reading. In my next article, I will be exploring the link between salesperson knowledge, CRM technology and sales performance. Make sure you are following my page for further updates.