CHAPTER 11 - CUSTOMER RELATIONSHIP MANAGEMENT

CRM enables an organization to :

• Provide better customer service.
• make call centers more efficient.
• help sales staff close deals faster.
• increase customer revenues.
• discover new customers.

RECENCY, FREQUENCY AND MONETARY VALUE (RFM)

How recently a customer purchased items is called as recency.

How frequently a customers purchased items is a frequency.

How much customer spends on each purchase is monetary value.

• CRM reporting technologies helps organization identify their customers across other application.
• CRM analysis technologies help organization segment their customers into categories.
• CRM predicting technologies help organizations make prediction regarding customer behavior.

CRM EXPLOSIVE GROWTH

• OPERATIONAL CRM : Support traditional transaction processing for day-to-day FRONT OFFICE operations.
• ANALYTICAL CRM : Support BACK OFFICE operations and strategic analysis and includes all system that do not deal directly with the customers.

CRM SUCCESS FACTORS :

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