CHAPTER 11

BUILDING A CUSTOMER - CENTRIC ORGANIZATION - CUSTOMER RELATIONSHIP MANAGEMENT

In this chapter, we learned about :

• Compare operational and analytical customer relationship management
• Identify the primary forces driving the explosive growth of customer relationship management
• Define the relationship between decision making and analytical customer relationship management
• Summarize the best practices for implementing a successful customer relationship management system 

CUSTOMER RELATION MANAGEMENT (CRM)

• CRM enables an organization to :

- Provide better customer service

- Make call centers more efficient

- Call 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 spend on each purchase (Monetary value)

THE EVOLUTION OF CRM

• CRM reporting technology : Help organizations identify their customers across other applictions
• 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 reporting, analyzing, and predicting

THE UGLY SIDE OF CRM

CUSTOMER RELATIONSHIP MANAGEMENT'S EXPLOSIVE GROWTH

• CRM business drivers

• Forecasts for CRM spending (in billions)

USING ANALYTICAL CRM TO ENHANCE DECISIONS

• Operational CRM : Support traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers
• Analytical CRM : Support back-office operations and strategic analysis and includes all systems that do not deal directly with the customers
• Operational CRM and analytical CRM

CUSTOMER RELATIONSHIP MANAGEMENT SUCCESS FACTORS

• CRM success factors include :

1. Clearly communicate the CRM strategy
2. Define information needs and flows
3. Build an integrated view of the customer
4. Implement in iterations
5. Scalability for organizational growth