Chapter 11 : building a customer - centric organization- customer relationship management

Learning outcomes:
11.1. compare operational and analytical customer relationship management
11.2. identify the primary forces driving the explosive growth of customer relationship management.
11.3. define the relationship between decision making and analytical customer relationship management
11.4. 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. for example, can serve the customer effectively and efficiently.
• Make call centre more efficient. For example, all of the customers data already kept in the systems.
• Cross sell products more effectively
• Helps sales staff close deals faster
• Simplify marketing and sales processes
• discover new customers
• Increase customer revenues.

Recency, Frequency, and Monetary Value. (RFM)

• organization can find their most valuable customers through RFM which is Recency, Frequency and monetary value.
• Recency - how recently a customer purchased items.
• Frequency - how frequently a customer purchased items.
• Monetary Value - how much customer spend on each purchase.

The evolution of CRM

• CRM reporting technology - help organization identify their customers across other applications.
• CRM analysis technology - help organization segment their customers into categories such as best and worst customers
• CRM predicting technology - help organization make predictions regarding customer behaviour such as which customer are at a risk of leaving.

The ugly side of the CRM :-

•  customer is the priority in todays business.
• if the customer does not like the company or anything bad happened when they make any transaction with the company they can make it viral all over the internet.
• it is because of the expansion and advance of the technology.
• for example, they can viral all the negative side of the company on media social.

Using analytical CRM to enhanced decision.

• Operational CRM - supports traditional transactional processing day-to-day front-office operations or systems that deal directly with the customer.
• Front-office usually deal directly with the customer such as customer service departments, sales departments and marketing departments.
• Analytical CRM - supports back-office operations an strategic analysis and includes all systems that do not deal directly with the customers.
• Back-office usually not involved directly with the customer but the decision that has been made can influence the customer and organization.
• For example, Human resource department, financial department and many more.
  

Customer Relationship Management Success Factors

• clearly communicate the CRM strategy - communicate with customer and system internal and external
• Define information needs and flows - must have good understanding with the flow of task
• Build an integrated view of the customer - support organizational goals such as comments, feedback from the customer.
• implement iterations - go slowly to learn the system
• scalability for organizational growth - make sure CRM support organizational future growth and the system have no limitation in order to add up new information.