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CRM Unplugged Chapter 3

CHAPTER 3 Strategy First: Aligning CRM with Company Strategy. Using an Analytical Framework for Defining Strategy Distinguishing Competitive Advantage from Other Types of Benefits How Competitive Advantage Manifests Itself in Operations Identify CRM Initiatives That Fortify Competitive Advantage | CHAPTER 3 Strategy First Aligning CRM with Company Strategy Using an Analytical Framework for Defining Strategy 56 Distinguishing Competitive Advantage from Other Types of Benefits 59 How Competitive Advantage Manifests Itself in Operations 63 Identify CRM Initiatives That Fortify Competitive Advantage 66 Key Points 76 As introduced in Chapter 1 CRM efforts that are not properly aligned with company strategy will likely produce efficiency and other gains in operational effectiveness but rarely improve competitive advantage. In many of these cases the gains will not justify the investments made to achieve them. It is important to keep in mind that lasting gains in revenue market share and customer satisfaction can come only through strengthening the organization s advantages in the marketplace. CRM initiatives that fortify or enhance sources of competitive advantage have the best chance for significant and lasting returns. Unfortunately most initiatives designed to improve customer operations are either unaligned or improperly aligned to company strategy. This often happens because the strategy is unclear or simply not widely understood within the company. Although this book is not specifically about creating or communicating business strategies we will show that successful CRM depends on clear and well-understood company strategy. To help demonstrate a successful approach for linking CRM to strategy we use Harvard Professor Michael Porter s widely accepted strategy frameworks1 to illustrate the three critical factors you can use to properly align CRM with your company s strategy .