Building a Customer - center Organization - Customer Relationship Management (Chapter 11)

Customer Relationship Management

- customer relationship management (CRM) is a means of managing all aspects of a customer's relationship with an organizations to increase customer loyalty and retention and an organization's profitability.

The Benefits of CRM

•  firms can find their most valuable customers by using the RFM formula-recency, frequency, and monetary value.

Evolution of CRM

•  3 phrases in evolution of CRM : i) reporting  ii) analyzing   iii) predicting CRM reporting technologies help organizations identify their customers across other application.
•  CRM analysis technologies help organizations segment their customers into categories such as best and worst customers.
•  CRM predicting technologies help organizations predict customers behaviour such as which customer are at risk of leaving. 

Operational and Analytical CRM

•  operational CRM supports traditional transactional processing 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.