Chapter 11: Building a Customer- Centric Organozation- 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

–      Help 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 RFM:

–      How recently a customer purchased items (recency)

–      How frequently a customer purchases items (frequency)

–      How much a customer spends on each purchase (monetary value)

THE EVOLUTION OF CRM

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

CUSTOMER RELATIONSHIP MANAGEMENT’S EXPLOSIVE GROWTH

•          CRM Business Drivers

 USING ANALYTICAL CRM  TO ENHANCE DECISIONS

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

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

•          Operational CRM and analytical CRM

CUSTOMER RELATIONSHIP MANAGEMENT SUCCESS FACTORS

•          CRM success factors include:

1.       Clearly communicate the CRM strategy

2.       Define information needs and flows

3.       Build an integrated view of the customer

4.       Implement in iterations

5.       Scalability for organizational growth