Tuesday, 11 March 2014

CUTOMER 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 customer revenues.
Recency, Frequency and Monetary Value
  • Organizations can find their most valuable customers through "RFM"-
           * Recency - How recently a customer purchased items

            * Frequency - How frequency a customer purchased items

             * Monetary value - How much a customer spends on each purchase.

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's Explosive Growth
  •  CRM Business Drivers
Using Analytical CRM to Enhance 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 customers.
  • The primary difference between the two is the direct interaction between the organization and its customer.
  • Operational CRM and analytical CRM
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.

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