Most CRM functions know they could be doing more. Fewer know specifically what to prioritise next.

One of the most common conversations I have with CRM leaders is a version of the same question: we know our CRM isn’t where it should be, but we’re not sure what to prioritise. The to-do list is long, the resources are limited, and everything is a priority.

A maturity model is a useful tool for cutting through that. It gives you a structured way to assess where the function currently is, what the next level of capability looks like, and what the highest-priority gaps are between the two.

The four stages of the model

Stage one is reactive. The email (not CRM) function exists primarily to send communications and they’re probably referred to as “blasts”. Activity is driven by a comms calendar and stakeholder campaign requests rather than by a coherent strategy. Data is used to build lists (with frequent “just send to everyone” senior overrides) and not to generate insight. Performance is measured on basic channel metrics: opens, clicks, unsubs. There is no clear commercial attribution. Most businesses operating at this stage have a CRM platform, a sending capability, and… that’s about it.

Stage two is managed. There is a defined strategy and a set of commercial objectives the function is working towards. Basic segmentation is in place. Lifecycle programmes exist, even if they are not fully optimised. Testing happens, though not always rigorously. Reporting includes some commercial metrics alongside channel data. The function is starting to speak the language of the business rather than the language of email marketing.

Stage three is optimised. The CRM function operates with a sophisticated understanding of its audience, a structured test-and-learn programme, and commercial reporting that connects activity directly to revenue. Segmentation is dynamic and data-driven. Automation handles a significant proportion of lifecycle communications. CRM drives relationships with Sales, Product, Data and wider Marketing teams. The function is seen by the business as a commercial contributor, not a delivery resource. Stakeholder relationships are strong and the CRM team is involved in commercial planning, not just marketing execution.

Stage four is predictive. The function uses data science and AI tooling to anticipate customer behaviour rather than just respond to it. Next-best-action models inform communication decisions. Propensity modelling drives audience selection. Attribution is sophisticated and widely accepted by the business. The CRM function is a recognised driver of commercial strategy. Very few businesses are truly here and most that claim to be are at stage three with platform features and MCP integrations that they’re not really using.

How to assess where you are and be honest about it

The assessment requires looking at five dimensions: strategy and commercial alignment, data and insight capability, technology and platform utilisation, team capability and operating model, and measurement and reporting. Most CRM functions are not at the same stage across all five. You might have:
– Strong technology and weak data capability (if this is true for you… for the love of common sense don’t plug in AI).
– Strong execution and weak strategy (pretty standard, especially in phase 1 email teams).
– Strong strategy and underdeveloped or under-resourced team (guaranteed route to team burnout, by the way. Common phase 2 situation)

Building a maturity model is useful precisely because it reveals where the inconsistencies are.

The most common pattern I see is a function that believes it is at stage three because it has a sophisticated platform and a complex campaign calendar, but is actually operating at stage one or two because the data foundations are weak, the commercial attribution is absent, and nobody in the business outside the CRM team knows or cares what the function is producing.

How do you know if this is you? Well… have you ever put together a detailed performance and revenue report and been asked, “what was the open rate?”.

What to prioritise at each stage

Moving from stage one to stage two requires three things: a defined commercial strategy with clear OKRs, segmentation logic that goes beyond broad demographic splits, and a reporting structure that includes commercial metrics.

Moving from stage two to stage three requires investment in data and insight capability, a structured test-and-learn programme with the discipline to run it properly, and the stakeholder relationships to ensure CRM is involved in commercial planning rather than just execution. This is where most CRM leaders spend the majority of their careers, and there is a lot of value to be unlocked in doing it well.

Moving from stage three to stage four requires data science capability, clean and well-structured data foundations, and a business that has the appetite and the sophistication to act on predictive insight. If the data foundations aren’t there, no amount of AI tools will produce quality outcomes. With AI this is amplified. “Shit in. Slop out.”

On your ambitions

Not every business needs a stage four AI-powered CRM function. The right level of CRM maturity is the level that is appropriate for the business’s size, commercial model, and data sophistication. A £20m B2C business with a small marketing team, single CRM professional and a well-implemented platform can drive significant commercial value operating at stage two, eventually growing into three over time.

The goal is not to race to reach stage four as quickly as possible. The goal is to be at the right stage for your business and to be operating at that stage through a deliberate strategy.

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