BRM is a journey, not a destination. It requires a long-term focus to create and manage a relationship with the customer in which the joint exchange is profitable to both the customer and the firm. The steps to manage this journey are outlined below –
Step 1 – Actionable Insight – Provide in-depth actionable insight of customer preferences, behaviors and value drivers, and continuously capture, maintain, and apply this insight across the entire customer relationship cycle.
- Identify the key value drivers that contribute to brand preference.
- Measure the utility that consumers attach to the brand.
- Analyze the customer’s buying patterns and identify the factors that influence brand switching
- Analyze the way actual choices reflect consumer preferences and situational constraints.
- Develop predictive scoring engines.
- Develop for each customer a market response profile, measuring the propensity to respond to various marketing stimuli (e.g., TV, direct mail).
Step 2 – Actionable Segments – Group target customers into actionable segments based on profitability, usage characteristics, and/or common needs.
Step 3 – Value Propositions – Define offers and corresponding value propositions that meet the identified needs. Reconcile the value of the customer to the value of the brand, and understand tradeoffs in revenue management versus customer relationship management.
Step 4 – Develop a Relationship – Develop a relationship with the customer. Create mechanisms that can generate positive interactions between the customer and the firm. These mechanisms should strive for customer satisfaction, loyalty growth, and consumer demand increase and lifetime customer ownership.
Step 5 – Measure the ROI – Measure the ROI of the implementation of a BRM strategy
- Define the economic framework.
- Develop a spending allocation model based upon the Life
- Time Value of a customer
- Elaborate upon different investment scenarios (based on internal and external resources).
