MGT 300 - CHAPTER 11

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 customers revenues


RECENCY,FREQUENCY,AND MONETARY VALUE

😎Organizations can find their most valuable customers through''RFM' -Recency,Frequency,and Monetary value

😎How recency a customer purchased items (Rencency)

😎How  frequently  a customer purchased 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 technologies 💨 Help organization segment their customers into categories such as                                                         best and worst customers.
😁 CRM predicting technologies 💨 Help organizations make predictions regarding customer                                                                         behavior 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 Managements Explosive Growth

CRM Business Drivers

Forecasts for CRM Spending (in billions)

   

   Using Analytical CRM to Enhance Decisions

  

     💖 Operational CRM 💨 Supports traditional transactional processing for day-to-day front-office                                                  operations or systems that deal directly with the customers.

     💖 Analytical CRM 💨 Support 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

END CHAPTER 11