Customer Life Cycle Management

In the telecommunications industry, interest is growing around the concept of Customer Life Cycle Management (CLM). This concept goes beyond traditional time-views of CRM and embodies the customer history as a real-time predictor, and also aims towards the long-neglected aspect of customer retention.

“John Strand, CEO of Strand Consulting in Denmark, supports the view of a more one to one dialogue with customers and stresses the role that this approach plays in today’s mobile world. He defines this individual approach as Customer Life Cycle Management (CLM). ‘Customer Life Cycle Management (CLM) is next generation CRM. In the past, operators would just target customers with different messages to sell services. CLM is different. You are looking at things from a lifecycle perspective and you are focusing on the individual customer. The big difference between CRM and CLM is that with CRM you are communicating to segments of users when you believe they need something. CLM is more about one to one communication – it’s about knowing what they want and delivering it when they want it.’” – How CLM can Optimise Revenue in Today’s Telecoms Market

Integrated data systems are important for this approach.

“Linking your customer service and support solution with back office applications enhances the customer experience and increases operational efficiency.” – Integrate to Differentiate

To the lay view, customer service is simply a matter of people treating people right. But within operations that may span thousands of agents and deal with millions of customers, everything has to work by a system. And IT has to put the technology in place that allows the system to run. So the dependence on technology to enable the right interaction is great.

“However, if it had put in place good procedures in the first place, the problem would have been dealt with rapidly, I would have had my overpayment dealt with (if it had happened at all), I would have taken out the extra services I am still waiting for from them—and I would have been telling everyone how impressed I was with them. Now, I am that worst nightmare: the unhappy customer who tells others, and those others tend to put a lot more store in the opinion of those who have had experience of a company than in the marketing blurb from the company itself.” – Has Technology Killed CRM Strategy?

So in today’s world, when we talk about customer service and support, we’re talking about technology to a make-or-break degree. And the all-too-human blind spot of corporate culture – the focus on its offerings rather than the consumers of its offerings – is probably more amenable to change through technology than by charismatic revolution, as we have suggested many times.

Published Monday, August 13, 2007 5:19 PM
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Monday, August 13, 2007 10:36 PM by Eliezer Gonzalez

# re: Customer Life Cycle Management

To really be able to do CLM, is appears that Business Intelligence systems are required - systems that can use multiple, integrated data sources where necessary, and which have powerful predictive capabilities.


Tuesday, August 14, 2007 5:29 AM by Hans De Keulenaer

# re: Customer Life Cycle Management

So CLM is a middle way between CRM and key account management. What else is there in the spectrum between spot customer contacts and strategic supplier-customer relationships?


Wednesday, August 15, 2007 6:18 PM by Dovetail Software

# re: Customer Life Cycle Management

Well, we're not sure this acronym is a proven force yet - we put it out there for interest. All of the concepts are already in various development within contact center customer service - the single (hopefully correct) view of the customer coming from integrated data; routing to the applicable resource in real time; mixing historical data with contextual behavior analysis. Deepening the relationship.

Anybody have any experience with Agillic's system?

--Dovetail


Thursday, October 23, 2008 3:20 PM by Terry

# re: Customer Life Cycle Management

I am confused about CLM

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