CHAPTER 11 : BUILDING A 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
–Simplify marketing and sales processes
–Discover new customers
–Increase customer revenues
Recency,Frequency,and Monetary Value
•An organization can find its most valuable customers by using a formula that industry insiders
call RFM: –How recently a customer purchased items (recency) –How frequently a customer purchases 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 tcechnologies - 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
- Three phases in the evolution of CRM include reporting,analyzing,and predicting 
The Ugly Side of CRM
Customer Relationship Management's Explosive Growth
Using Analytical CRM to Enhance Decisions
operations or systems that deal directly with the customers
•Analytical CRM – supports back-office operations and strategic analysis and includes all
systems that do not deal directly with the customers
•Operational CRM and analytical CRM
Customer Relationship Management Success Factors
•CRM success factors include: 1.Clearly communicate the CRM strategy
2.Define information needs and flows
3.Build an integrated view of the customer
4.Implement in iterations
5.Scalability for organizational growth
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