CHAPTER 11 : 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
·
Help
sales staff close deals faster
·
Simplify
marketing and sales processes
·
Discover
new customers
·
Increase
customer revenues
Recency,
Frequency, and Monetary Value
-
Organizations
can find their most valuable customers through “RFM” - Recency, Frequency, and
Monetary value
·
How
recently a customer purchased items (Recency)
·
How
frequently a customer purchased items (Frequency)
·
How
much a customer spends on each purchase (Monetary Value)
The
Evolution of CRM
-
CRM
reporting technology – help
organizations identify their customers across other applications
-
CRM
analysis technologies – help
organization segment their customers into categories such as best and worst
customers
-
CRM
predicting technologies – help
organizations make predictions regarding customer behaviour such as which
customers are at risk of leaving
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Three phases in the evolution of CRM
include reporting, analysing, and predicting
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The
Ugly Side of CRM
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Customer
Relationship Management’s Explosive Growth
CRM Business Drivers
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Forecasts for CRM Spending (in
billions)
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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
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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
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