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How Integrated is Your CRM Strategy?
Fragmented markets, diverse customer needs, and eroding brand loyalty are forcing companies to
change the way they identify, attract, and retain customers. For those that know how to integrate
marketing, sales, and service contacts, the rewards are stronger, more profitable customer
relationships.
By Joel Book
M
arketing, as we know it, is undergoing a dramatic revolution. The days of one-size-fits-all mass
marketing are fast disappearing, and in its place, organizations are implementing one-to-one
Customer Relationship Management (CRM) solutions to personalize and strengthen the company’s
relationship with customers. To ensure CRM success, smart companies are replacing product-centric
marketing efforts with Integrated Marketing, a customer-focused startegy for integrating communications,
sales force and customer service contacts.
Integrated marketing is an information-driven and technology-enabled approach that utilizes multiple direct
communications channels including direct mail, e-mail, sales force and the Internet in combination with
multiple indirect channels including media advertising, marketing events, in-pack inserts, and point-of-sale
promotions to optimize customer interaction. This process enables organizations to stay connected with the
customer through each stage of the Customer Relationship Management life cycle -- from initial product
awareness and evaluation, to first purchase, repeat purchase, and finally, loyalty.
Integrated Marketing
Managing and Optimizing Customer Relationships
by Leveraging Every Point of Contact
Customer Needs and Value
Highly
Differentiated
Personal Contact
TeleSales/Call Center
Direct Mail / Catalog
Customer Retention/
Sales Expansion
Retail POS Promotion
Lead Generation/
Customer Acquisition
Not
Differentiated

“Personalized” Web Site
E-mail / E-Newsletter
Not
Differentiated
Direct Response Advertising
Marketing Event
“Public” Web Site
Public Relations
Not
Customized
Marketing and Sales Contacts
Highly
EXECBREF.PPT
Customized
How Integrated Marketing Works
Integrated marketing utilizes a well-coordinated combination of direct and indirect channels to communicate
with current and prospective customers. Indirect communications channels such as media advertising, retail
promotions and trade shows are used to produce inquiries and generate sales leads, while direct
communications channels such as direct mail, electronic newsletters, and field sales contacts are used to
develop sales and maintain customer dialogue. By tightly integrating marketing and sales contacts, companies
are able to achieve double-digit response rates, increase sales revenue, and maximize marketing ROI.
© 1999 by Joel E. Book
1
Integrated Marketing for CRM
The backbone of an effective integrated one-to-one strategy is a closed-loop marketing process which is
engineered to ensure that the right message or offer, is presented to the right customer, delivered through the
right channel, and communicated at the right time.
Closed-Loop Marketing Process
Customer Information
Relationship Analytics
Create
Programs
Channels
Direct
Mail
E-Mail/
Newsletter
Implement
Programs
Develop
Strategy
Relationship
Marketing
Business Rules
Media
Advertising
Web
Site
Call Center
Identify
Opportunities
Measure
Results
Customer
Service Center
Point of Sale
Marketing
Event
Enabling this process is enterprise marketing automation (EMA) technology. Data Mining technology is used
to identify customers who represent cross-sell and up-sell opportunities and Campaign Management
technology is used to plan, implement, manage and measure marketing campaigns that manage customer
interaction through multiple points of contact.
The fuel that drives one-to-one marketing is business intelligence. Customer Analytics provide the insight and
intelligence necessary to customize messages, product offers, and service according to individual customer
needs. And CRM Business Rules provide the business logic and guidelines to personalize message
"treatments." These rules define how communications, sales contacts, and customer service will be
differentiated based on the customer’s needs, purchase behavior, product usage practices, and relationship life
cycle stage.
The ultimate goal of Integrated Marketing is to optimize the performance of the company’s customer
portfolio. This requires astute management of the customer interaction process in a manner that reinforces the
customer’s relationship with the company, generates repeat purchases, and maximizes “share of customer” by
expanding product and service usage.
Building an Integrated Infrastructure for CRM
An organization's Customer Relationship Management strategy will only be as successful as the infrastructure
that supports it. Unfortunately, this is an area where many companies fail to devote sufficient time and
resources for needs assessment and strategic planning.
© 1999 by Joel E. Book
2
Integrated Marketing for CRM
Building an integrated infrastructure to support CRM requires proper alignment of the CRM Strategy with the
Business Processes, Organizational Structure, and Marketing Technology that enable its implementation and
management.
Customer Relationship Management
Integrated Infrastructure
Strategy
Customer Interaction Plan
Customer Intelligence Plan
Technology Architecture Plan
Systems Integration Plan
Strategy Implementation Plan
Organization
Product Marketing Managers
Channel Managers
Field Sales/Telesales
Customer Service & Support
External Service Firms
Integrated
Infrastructure
Technology
Marketing Database
Data Mining (Predictive Modeling)
Campaign Management
Sales Force and Call Center
Query and Reporting
Processes
Communications Planning
Campaign Management
Sales Development
Channel Management
Customer Service & Support
Integrated Marketing
Direct Channels
Direct Mail
E-Newsletter
Field Sales
Indirect Channels
Advertising
TeleSales
Retail
Marketing Event
Web Site
Planning and building an integrated infrastructure for Customer Relationship Management strategy begins by
understanding individual customer needs, and defining how, through an integrated marketing approach, the
company can increase revenues, maximize profits, and build lasting customer relationships.
If your company is planning to put a Customer Relationship Management strategy in place, consider the
following recommendations as you assess your needs and formulate your approach.
1.
Define your Customer Relationship Management strategy and objectives. Link the CRM strategy to the
organization's business objectives. Create a "CRM Blueprint" for developing and executing the strategy.
2.
Establish CRM Communications Business Rules that serve as guidelines for planning and managing
customer interaction based on customer intelligence.
3.
Create a Customer Analytics Framework that supports customized communications, sales and service
contacts based customer demographics, predicted product/service purchase, customer value, and life
cycle stage.
4.
Develop a "closed-loop" Marketing Communications Process for planning, executing, and measuring
marketing communications programs.
5.
Establish a CRM Support Center to provide enterprise-wide support for marketing program planning,
execution, and measurement. Staff this group with people experienced in customer-focused marketing.
© 1999 by Joel E. Book
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Integrated Marketing for CRM
6.
Integrate data on current and prospective customers in a central marketing database. Eliminate the usage
of multiple customer databases used to support communications, sales, and customer service.
7.
Develop an enterprise customer data acquisition strategy for developing and maintaining customer
intelligence. Implement an annual Customer Profile Review to verify and update customer needs.
8.
Employ the use of campaign management technology to automate the planning, management and
measurement of integrated marketing programs.
9.
Develop metrics for measurement and analysis of marketing program performance. Use these "key
performance indicators" to monitor program results and refine marketing strategy.
10. Implement customer management and sales force automation technology to support enterprise-wide
customer information access and integrate marketing, sales, and customer service processes.
Integrated Marketing Works to Optimize Customer Relationships
“The ground rules for marketing have definitely changed. No longer is it market share, or return on sales
and assets. The goal now is not just selling the product, but owning the customer relationship.”
Rick Kean, CBC, Executive Director
Business Marketing Association
Having the best products or service is no longer a guarantee for success. That's why progressive companies
are finding integrating marketing is an effective strategy for finding, growing and keeping customers.
Integrated marketing works because it ties together the entire lead generation, sales development and
Customer Relationship Management process. It enables a company to establish and maintain a direct
relationship with current and prospective customers by identifying their needs and using this information to
deliver information and product offers that are customized and relevant.
By following this approach, companies are maximizing revenue and increasing profits by turning prospects
into customers and turning customers into advocates.
About the Author:
Joel Book is Director of the Integrated Marketing practice for DiaLogos, Inc., a Boston-based management
consulting firm. He helps organizations plan, implement and manage information-based and technologyenabled strategies that optimize marketing effectiveness, accelerate business growth and strengthen customer
relationships. This article appeared in the July 1999 issue of Boston Business Journal.
Contact Information:
Joel Book
Director, Integrated Marketing Practice
DiaLogos, Inc.
401 North Wabash Avenue, Suite 620
Chicago, IL 60611-5642
[email protected]
312.470.2532 (Tel)
312.645.0317 (Fax)
© 1999 by Joel E. Book
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Integrated Marketing for CRM