Chapter 11 : Building a Customer-Centric Organization - CRM

Customer Relationship Management

• CRM enables an organization to :

1. Provide better customer service.
2. Make call centres more efficient.
3. Cross sell products more effectively.
4. Help sales staff close deals faster.
5. Simplify marketing and sales processes.
6. Discover new customers Increase customer revenues.

Recency, Frequency and Monetary Value

• An organization can find its most valuable customers by using a formula that industry insiders call RFM :

1. How recently a customer purchased items (recency)
2. How frequently a customer purchases items (frequency)
3. How much a customer spends on each purchase (monetary value)

The Evolution of CRM

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.
• Operational CRM and analytical CRM :

CRM 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