Chapter 11: Building a customer -Centric Organization-Customer Relationship Management

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

CRM enables an organization to;

Ø  Provide better customer service

Ø  Make call centers more efficient

Ø  Cross sell products more effectively

Ø  Helps sales staff close deals faster

Ø  Simplify marketing and sales processes

Ø  Discover new customers

Ø  Increase customer revenues

RECENCY, FREQUENCY AND MONETARY VALUE

An organization can find its most valuable customers by using a formula that industry insiders call FRM;

Ø  How recently a customer purchased items (recency)

Ø  How frequently a customer purchased items (frequency)

Ø  How much a customer speeds on each purchased (monetary value)

THE EVALUATION OF CRM

*CRM reporting technologies help organizations identify their customers across other applications. 

*CRM analysis technologies help organizations segment their customers into categories such as best and worst customers.

* CRM predicting technologies help organizations predict customer behavior, such as which customers are at risk of leaving. 

THE UGLY SIDE OF CRM: WHY CRM MATTERS MORE NOW THAN EVER BEFORE

CUSTOMER RELATIONSHIP MANAGEMENT’S EXPLOSIVE GROWTH

USING ANALYTICAL CRM TO ENHANCE DECISION 

Ø  Operational CRM – supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers

Ø  Analytical CRM – supports back-office operations and strategic analysis and includes all system that do not deal directly with the customers

CUSTOMER RELATIONSHIP MANAGEMENT SUCCESS FACTORS

CRM success factors include;

Ø  Clearly communicate the CRM strategy

Ø  Define information needs and flows

Ø  Build an integrated view of the customer

Ø  Implement in iterations

Ø  Scalability for organizational growth

USING ANALYTICAL CRM TO ENHANCE DECISION

Operational CRM and analytical CRM