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.
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