CHAPTER 11 - BUILDING A CUSTOMER CENTRIC ORGANIZATION - CUSTOMER RELATIONSHIP MANAGEMENT


ADVANTAGES OF CUSTOMER RELATIONSHIP MANAGEMENT
  • 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

Recency - how recently a customer purchased items

Frequency - how frequently a customer purchased items

Monetary value - how much a customer spends on each purchase



EVOLUTION OF CRM
  • CRM reporting technology - help organization identify their customers across other applications
  • CRM analysis technologies - help organization segment their customers into categories such as best an worst customer
  • CRM predicting technologies - helps organizations make predictions regarding customer behavior such as which customers are at risk of leaving











CUSTOMER RELATIONSHIP MANAGEMENTS EXPLOSIVE GROWTH


  • CRM business driver




  • forecast for CRM spending (in billion)






STRATEGY 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 customer 






CUSTOMER RELATIONSHIP MANAGEMENT SUCCESS FACTORS

  • clearly communicate the CRM strategy
  • define information needs and flows 
  • scability for organizational growth




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