Chapter 11: Building a customer-centric organization - Customer relationship management. The learning objectives for this chapter include: Compare operational and analytical customer relationship management, identify the primary forces driving the explosive growth of customer relationship management, define the relationship between decision making and analytical customer relationship management,. | CHAPTER 11 Building a Customer-Centric Organization—Customer Relationship Management LEARNING OUTCOMES Compare operational and analytical customer relationship management Identify the primary forces driving the explosive growth of customer relationship management Define the relationship between decision making and analytical customer relationship management Summarize the best practices for implementing a successful customer relationship management system 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 | CHAPTER 11 Building a Customer-Centric Organization—Customer Relationship Management LEARNING OUTCOMES Compare operational and analytical customer relationship management Identify the primary forces driving the explosive growth of customer relationship management Define the relationship between decision making and analytical customer relationship management Summarize the best practices for implementing a successful customer relationship management system 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 THE UGLY SIDE OF CRM: WHY CRM MATTERS MORE NOW THAN EVER BEFORE THE UGLY SIDE OF CRM: WHY CRM MATTERS MORE NOW THAN EVER BEFORE CUSTOMER RELATIONSHIP MANAGEMENT’S EXPLOSIVE GROWTH CRM Business Drivers 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 – supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers USING ANALYTICAL CRM TO ENHANCE DECISIONS Operational CRM and analytical CRM 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 .
