BUILDING A CUSTOMER-CENTRIC ORGANIZATIONAL - CUSTOMER RELATIONSHIP MANAGEMENT
CRM 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
Why, in the age of e-business, an organization is challenged more than ever before to truly satisfy its customers.
What is RFM?
Organizations can find their most valuable customers through "RFM" - Recency, Frequency and Monetary value - Personalized Promotions
- 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
1. CRM reporting technology - help organizations identify their customers across other applications
2. CRM analysis technologies - help organization segment their customers into categories such as best and worst customers
3. CRM predicting technologies - help organizations make predictions regarding customer behaviour such as which customers are at risk of leaving.
Three phases in the evolution of CRM include reporting, analyzing and predicting
Customer Relationship Management's Explosion Growth
Using Analytical CRM to Enhance Decisions:
1. Operational CRM - supports traditional transactional processing for day to day front-office operations or systems that deal directly with the customers. For example: Customer service, sales, billing.
2. Analytical CRM - supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers. For example: Accounting, finance, human resources and data warehouses.
- Operational CRM and analytical CRM
Customer Relationship Management Success Factors?
- CRM success factors include:
1. Clearly communicate the CRM strategy - all departments and employees understand exactly what CRM means and how it will add value to the organization - critical to the success of the implementation
2. Define information needs and flows - organization understand all of the different ways that information flows into and out of the organization to implement a successful CRM system. If the organization misses one of the information flows, such as a customer service Website, then none of that information from that Website will be integrated into the CRM system and the company will not have a complete view of its customers
3. Build an integrated view of the customer - the CRM system must support the organization's strategies and goals.
4. Scalability for organizational growth - ensure the system can support the organization's future growth
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