CHAPTER 11: BUILDING A CUSTOMER-CENTRIC ORGANIZATION-CUSTOMER RELATIONSHIP MANAGEMENT
Building A Customer-Centric Organization-Customer 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 frequency 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 behavior such as which customers are at risk of leaving.
- Three phases in the evolution of CRM include of reporting, analyzing, and predicting
![Image result for the evolution of CRM](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEheIlyqsuibQuaqn2ENPoBOe_xovn4JauPI4eWpJWw8V1qUIyTAcrBtb6r3PcasI3Wa0RPWgaaEJV0AbtLzHFhJeCWKuj5TV4JcCEEZaeqdTWNoAV-msuLeaHUcVwUutbP6ewbtUozJWPM/s320/hnjgn.jpg)
![Image result for the evolution of CRM](https://image.slidesharecdn.com/introductiontocrm-160127171836/95/introduction-to-crm-24-638.jpg?cb=1453915149)
The Ugly Side of CRM:
![Image result for the ugly side of CRM](https://image.slidesharecdn.com/chapter11-121222195148-phpapp02-130915040216-phpapp01/95/crm-and-customer-centricity-pollalis-8-638.jpg?cb=1379217781)
Customer Relationship Management's Explosive Growth:
![Related image](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjokDbTTfdh_STV7LBfQFiVkcuaQAL1bJFaZjvurL5mEwg8t_qOtro2HXXS5alChyphenhyphendrDw84f2llljnl_RbmNlDbT7Awq1Usi1E8yVOFSMZNkOqFvUMX0ogXHDHilIkBFLfd-QgXOqZ3FyuH/s320/lecture-slides-11-10-08-9-728.jpg)
![Image result for the ugly side of CRM](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiC5bhHxJgISIny4QU8pp8wVD51cNtaaPCMvTg7TXUTXCNv-3-bo2hZDKhK3G0CrU_OI_F3E2tvu7tjrZZKh-gnzYzQl8MyEou3Dxe1GWuS-ywfx7HV7-VaDz6zmB_YPUg9MnvNbZJ7OluX/s320/crm-and-customer-centricity-pollalis-10-638.jpg)
Using Analytical CRM to Enchance 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
- operational CRM and analytical CRM
![Image result for the ugly side of CRM](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg4zL8-yjCbE8ITQj7661ZcpvCQ0MUPDLneSbGed4KOF2lmTNc-7usKWwyY7_j6yPfLU11mF9QxGOUZWLHij5Gr_eDbjMvlD9WPnfhtDBxsi3msooqvEGIcLftyUUTjCOWKdRQa5C8GaPKi/s320/c112.jpg)
Customer Relationship Management Success Factors:
- CRM sucsess factors include:
- clearly communicate the CRM strategy
- define information needs and flows
- build an integrated view of the customer
- implement in interactions-avoid big-bang approach (instant changeover)
- scalability for organizational growth
14 NOVEMBER 2017
TUESDAY
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