CHAPTER 11 (MGT300)

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 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

The Evolution of CRM
  • ·       CRM reporting technology- help organizations identity 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 make predictions regarding customer behaviour such as which customers are at risk of leaving
  • ·       Three phases in the evolution of CRM include reporting, analyzing and predicting



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
  • ·       Operational CRM and analysis CRM

Customer Relationship Management Success Factors
  • ·       CRM success factor include:

-        Clearly communicate the CRM strategy
-        Define information needs and flows
-        Build an integrated view of the customer
-        Implement in iterations- avoid big-bang approach (instant changeover)

-        Scalability for organizational growth

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