Value based CRM aligning marketing IT and finance functions

This article discusses values-based CRM concepts in regards to aligning marketing, IT, and financial functions. An interesting point made by the authors

[F]ocusing just on the ability of IT to support strategy and processes bears the risk of not utilizing the full potential of innovative technologies[.]

It’s clear there is a critical interdependence between both marketing and IT departments. As marketing seeks to “engage,” “relate with,” and “delight” customers in the continuous battle for share-of-mind and share-of-heart, relegating IT to the sidelines as bench support is not a good strategy. Rather, incorporating IT vision is a critical component in setting strategy. The complexity of consumer interactions with a firm’s brand, demands increasingly sophisticated infrastructure and data management tools to ensure that a firm can meet the needs of these consumers.

Similarly, firms ought to align financial management goals within this marketing-IT milieu. Financial concerns, in this context, center around setting proper marketing metrics to measure ROI and lifetime value of a customer. The paper points out that

[A] number of financial concepts (e.g. capital asset pricing model, portfolio theory, and real option approaches) have recently been transferred to customer portfolios…Such “marketing metrics”, based on these approaches and thus taking a future-oriented, long-term, cashflow oriented, and risk adjusted perspective, allow for an identification and measurement of the economic value contribution and the ROI of marketing[.]

To enable such penetrative insights, firms need to leverage data mining tools to create timely (i.e., near real-time) metrics to be shared across business to ensure uniform adherence to meeting clients’ expectations.

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