CHAPTER ELEVEN : BUILDING A CUSTOMER-CENTRIC ORGANIZATION – CUSTOMER RELATIONSHIP MANAGEMENT

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

CRM enables an organization to;

Provide better customer service

Make call centers more efficient

Cross sell products more effectively

Helps sales staff close deals faster

Simplify marketing and sales processes

Discover new customers

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;

How recently a customer purchased items (recency)

How frequently a customer purchased items (frequency)

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

USING ANALYTICAL CRM TO ENHANCE DECISION

Operational CRM – supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers. For example, Sales, Marketing and Customer Service departments.

Analytical CRM – supports back-office operations and strategic analysis and includes all system that do not deal directly with the customers. For example, Financial and Human Resource Department.

CUSTOMER RELATIONSHIP MANAGEMENT SUCCESS FACTORS

CRM success factors include;

Clearly communicate the CRM strategy

Define information needs and flows

Build an integrated view of the customer

Implement in iterations

Scalability for organizational growth

USING ANALYTICAL CRM TO ENHANCE DECISION

Operational CRM and analytical CRM