CHAPTER 11 : Building a customers - centric organization-customer relationship management.

CHAPTER 11 : Building a customers - centric organization-customer  relationship management.

CRM enables an organization to:

-provide better customer service.
-make call centers more efficient.
-cross sell products more effectively.
-increase customer revenues.


Organizations can find theirs most valuable customers through ''RFM'' - Recency, Frequency, and Monetory value.
-How recently a customer purchased items.
-How frequently a customer purchased items.
-How much a customer spends on each purchase.


The evolution of CRM

• CRM reporting technology - help organizations identify their customers across other applications. 
• CRM- 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. 

Using Analytical CRM to enchance decisions

• operational CRM-support traditional transactional processing for day to day front office operations or systems that deal directly with customers. 
• analytical CRM - supports back office operation and strategic analysis and includes all systems that do not deal directly with the customers. 

CRM success factors

• Clearly communicate the CRM strategy 
• Define information needs and flows 
• Build an integrated view of the customer 
• Implement in iterations