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

The Ugly Side of CRM:

Customer Relationship Management's Explosive Growth:

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

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