CHAPTER 11 - BUILDING A CUSTOMER-CENTRIC ORGANIZATION - CUTOMER RELATIONSHIP MANAGEMENT

CRM enables an organization to :

• Provide better customer service
• Make call centers more efficient
• Cross sells product more effectively 
• Helps sales staff close deals faster
• Simplify marketing and sales processes
• Discover new customers 
• Increase customer revenues

1. Organizations can find their most valuable customers through "RFM"- Recency, Frequency and 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 prediction regarding customer behavior 
• Three phases in evolution of CRM include reporting, analyzing and predicting.

CRM'S EXPLOSIVE GROWTH

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

CRM SUCCESS FACTOR
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.