Many companies that practice CRM rely on a simple model to guide them strategically. In many cases, this sums up exactly what CRM is about. Below is a simple model that demonstrates this.
Notice the Pareto effect, discussed later in this chapter, demonstrated in this model.
As you can see, a good CRM strategy turns strangers into customers, customers into friends, and friends into advocates for your business. One needs to identify the right touchpoints and messaging to drive a customer further along this funnel.