Sichuan Telecom Customer Relationship Management

With the trend of the integration of world economy, rapid development of free market and the customer demand diversified and changing, many firms feel the intensification and mercilessness of market competition. Generally speaking, the supply and demand of the China market change from shortage to relative overproduction, which leads to the fundamental change in the relationship between firms and customers. It is essential for firms which succeed in market to listen to and care for the demand of customers, to maintain good relationship with them, and create the value they need. To earn the loyalty of target customers and therefore competitive advantage and long-term profits, firms need to construct the support competence of customer relationship management (CRM), develop and maintain interactive customer relationship strategically. Chapter 1 and Chapter 2 point out the necessity of the study from the perspective of practice and theory. To clarify the strategic significance of CRM, the first chapter analyses the origin of the bottleneck of customer, the value of customer relationship, the cumulative impact of customer defection, its effect on firm's study and innovation, the change of operational environment, etc. According to the current situation analysis in communications companys, it is clear that many firms don't have the concept of CRM, while many other firms don't have suitable methods to carry out customer-oriented strategy although they recognize the importance of meeting customer demand. Accordingly, the paper puts forward a research framework of CRM which is based on competence. The second chapter first explores the theoretical origin and the stages of CRM. Then the paper clarifies the concept of CRM. The loyalty of target customer group is what CRM tries to achieve, and the fundamental path to it is the creation of customer value. Therefore chapter 3 first discusses the concept of customer value. Then it puts forward the three levels of customer value creation, namely fundamental value, customer desired value, and the value of surpassing competitors or customer expectation. After that, it analyzes the main factors to improve customer value. To enhance the value for diversified customers, the chapter brings forward supply mode, customization mode, and cooperation mode for customer value creation from the two dimensions namely the ability and wish of customer's participation in the value creation, and the importance of customers to firms. The definition of target customers is the base of the CRM, and integration competence of customer information is the key factor to define target customers. Chapter 4 first summarizes the surroundings of SiChuan Communicatioan .It also describes the profile of the three most valuable customer groups, namely, the group of profitability, strategy, and loyalty respectively. Furthermore, it clarifies how to establish corresponding relationship with these groups. Having defined the target customers rationally, firms can try their best to retain the most valuable customer group while "fire" those customers who don't have strategic significance or value through suitable ways. In this chapter ,the key customer group has been confirmed.In the base of contents upwards, the author put forward the principle and aim of CRM system..Firstiy ,the author annalyse the mangement and system building of SC telecom ,and then ,confirmed the system structure ,function and business flow.The main innovative contribution in the paper includes the following five aspects: establishing a systematic analysis framework for CRM by strategically thinking the relationship between the firm and its customers together with competence theory; exploring the significance and profile of the customer group of profitability, strategy, and loyalty; putting forward three levels and three modes in the creation of customer value; putting forward the interactive model of CRM.