Chapter Eleven

Building a customer - centric organization - customer relationship management


1. Customer relationship management (CRM)

CRM enables an organization to;

-Provide better customer service.
-Make call centers more efficient.
-Cross sell products more effectively.
-Helps sales staff close deals faster.
-Simplify marketing and sales processes.
-Discover new customers.
-Increase customer revenues


2. Recency, frequency, and monetary value.  

An organization can find its most valuable customers by using a formula that industry insiders call FRM;

-How recently a customer purchased items (recency).
-How frequently a customer purchased items (frequency).
-How much a customer speeds on each purchased (monetary value)


3. The evaluation of CRM.


-CRM reporting technologies help organizations identify their customers across other applications.
-CRM analysis technologies help organizations segment their customers into categories such as best and worst customers.
-CRM predicting technologies help organizations predict customer behavior, such as which customers are at risk of leaving.







4. The ugly side of CRM: Why CRM matters more now than ever before.








5. Customer relationship management's explosive growth.







6. Using analytical CRM to enhance decision.

-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 system that do not deal directly with the customers


7. 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


8. Using analytical CRM to enhance decision.

Operational CRM and analytical CRM