ABSTRACT
Although CRM as a value proposition is a long-term strategy whereby an organization develops systems to manage its customer relationships, management often loses sight of short-term opportunities. McKinsey & Company reported that significant profitability can result in the short term through what it refers to as “tactical CRM.” For tactical CRM to result in quick wins for an organization, it must first determine which stage of the customer-business life cycle it wants to focus on: acquisition, development, cross-selling, up-selling, retention, servicing, loyalty, or win-back. Next, tactical CRM uses existing information and processes to determine which profit opportunities exist in the identified stage. Finally, tactical actions are taken to capitalize on these insights.1
