MGT 300 - Chapter 11

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
  • Help sales staff close deals faster
  • Simplify marketing and sales processes
  • Discover new customers
  • Increase customers revenues


RECENCY, FREQUENCY, AND MONETARY VALUE

~ Organizations can find their most valuable customers through''RFM" - Recency,Frequency,and Monetary value

 ~ How recency a customer purchased items (Rencency)

 ~ How  frequently  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 reporting, analyzing and predicting

               

               



The ugly side of CRM




CUSTOMER RELATIONSHIP MANAGEMENT EXPLOSIVE GROWTH


CRM Business Drivers


Forecasts for CRM Spending (in billions)
    

   

   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 - 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

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