Chapter 11: BUILDING 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 more effectively

→ Help sales staff close deals faster

→ Discover new customers

→ Increase cutomer revenues

Recency, Frequency, and Monetary Value

• Organizations can find their most valuable customers through "RFM" 
• How recently a customer purchased items (Recency)
• How frequently a customer purchased items (Frequency)
• 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 behaviour such as which customers are at risk of leaving

Using Anlytical CRM to enhance decisions

• Operational CRM- supports traditional transaction processing for day-to-day front-office operations or systems that deal directly with the customers.
• Analytical CRM- supports back-offie operations and stategic analysis and includes all systems that do not deal directly with customers.