Getting to Know You - customer relationship management

Chief Executive, The, Jan, 2001 by Venkatesh Shankar

* Set revised e-business vision, goals, and measures. To do this, companies should benchmark their activities with respect to competitors, similar firms, and those that are "best-in-class." Look for metrics in the revenue growth areas of customer-facing applications.

* Do a customer-centric e-business gap analysis. In this phase, companies would determine the gap or difference between the identified customer solution-based e-business models and their current product-based business models. They should identify the e-business applications that need substantial improvement and prioritize their efforts.

* Formulate revised e-strategy, e-initiatives, and e-implementation steps. Companies must come up with a sound revised customer-centric e-business strategy based on the gap analysis. This strategy should lead to a prioritized set of e-initiatives, each with a well-coordinated action plan.

* Set up revised e-partnership initiatives. In addition to partnerships on the buy-side, companies should form strategic alliances on the sell-side with technology firms for customer relationship initiatives or with service providers for offering customized bundles.

* Design and monitor a customer-centric e-business scorecard. All e-initiatives and action plans need to be tracked on a customer-centric e-business scorecard. Adequate intermediate metrics--both qualitative and quantitative--should be in place for critical dimensions such as e-vision, e-strategy, e-initiative, and e-implementation. Speed of implementation and response to competitive actions are key, so aggressive timelines should be followed.

* Revise organizational culture, and the hiring and retention process. Create an organizational culture where all employees' activities are linked to delivering superior customized value. Such a culture should embrace change and speed, and hire and reward fast acting and growth-oriented employees. It should create a new venture mindset, consistent with the revised e-business strategy and implementation plan.

Ultimately, successful clicks-and-mortar companies should see the forest ahead of the trees with respect to e-business. They need to realize that the Internet is not just a new medium or channel. It's a transformation vehicle best used to organize the business around customers' multiple touch points with companies and to continuously grow customized value and shareholder value through a bona fide revenue-enhancing strategy.

PROF. VENKATESH SHANKAR is a Ralph J. Tyser Fellow and Associate Professor of Marketing at the University of Maryland's Robert H. Smith School of Business.