CHAPTER ELEVEN - BUILDING A CUSTOMER-CENTRIC ORGANIZATION - CRM

CUSTOMER RELATIONSHIP MANAGEMENT

Customer Relationship Management (CRM) is a means of managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability.

RECENCY, FREQUENCY AND MONETARY VALUE

Organizations can find their most valuable customers through “RFM” 

- How recently a customer purchased item.

- How frequently a customer purchased item.

- How much a customer spends on each purchase. 

EVOLUTION OF CRM

Three phase in evolution of CRM:

- Reporting

- Analyzing

- Predicting

OPERATIONAL AND ANALYTICAL CRM

Operational CRM – support traditional processing day-to-day front-office operation or system that deal directly with the customers.

Analytical CRM – support back-office operation and strategic analysis and includes all systems that do not deal directly to the customers.

CUSTOMER RELATIONSHIP MANAGEMENT SUCCESS FACTORS

CRM success factors include:

-     Clearly communicate the CRM strategy.

-  Define information needs and flows. 

-      Build an integrated view of the customer. 

-      Implement in iterations. 

-  Scalability for organizational growth.