Building a Customer-Centric Organization – Customer Relationship Management
Customer Relationship Management (CRM)
CRM enables an organization to:
CRM enables an organization to:
Ø Provide better customer service
Ø Make call centers more efficient
Ø Cross sell products more effectively
Ø Help sales staff close deals faster
Ø Simplify marketing and sales processes
Ø Discover new customers
Ø Increase customer revenues
Recency, Frequency, and Monetary Value
Organizations can find their most valuable customers through “RFM” - Recency, Frequency, and Monetary value
Ø How recently a customer purchased items (Recency)
Ø How frequently a customer purchased items (Frequency)
Ø 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’s Explosive Growth
CRM Business Drivers
Customer Relationship Management’s Explosive Growth
Forecasts for CRM Spending (in billions)
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 analytical CRM
Customer Relationship Management Success Factors
CRM success factors include:
Ø Clearly communicate the CRM strategy
Ø Define information needs and flows
Ø Build an integrated view of the customer
Ø Implement in iterations
Ø Scalability for organizational growth
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