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 RFM;
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 technology - 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. 
-Three phases in the evolution of CRM include reportingn,analizyng, and predicting.





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


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