MGT 300 - Chapter 11

Building a customer-center 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 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, Frequency, and Monetary Value

• ·         How recently a customer purchased items (Recency)
• ·         How frequently a customer purchased items (Frequently)
• ·         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

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

Customer Relationship Management 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