Cute Black Flying Butterfly

Friday, 16 September 2016

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
  •   Helps 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 purchased items (frequency)
  • How much a customer speeds on each purchased (monetary value)

THE EVALUATION OF CRM

  • CRM reporting technologies help organizations identify their customers across other applications. 
  • CRM analysis technologies help organizations segment their customers into categories such as best and worst customers. 
  • CRM predicting technologies help organizations predict customer behavior, such as which customers are at risk of leaving. 


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


CUSTOMER RELATIONSHIP MANAGEMENT’S EXPLOSIVE GROWTH


USING ANALYTICAL CRM TO ENHANCE DECISION 
  • 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 system that do not deal directly with the customers

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

USING ANALYTICAL CRM TO ENHANCE DECISION

Operational CRM and analytical CRM

No comments:

Post a Comment