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

·         Customer relationship management (CRM) is a means of managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and organization’s profitability. CRM allows an organization to gain insights into customer’s organization profitability

·         As the business world increasingly shift from product focus to customer focus

·         CRM will allow an organization to:

a)      Provide better customer service

b)      Make call centers more efficient

c)       Discover new customer

d)      Increase customer revenues

·         Operational CRM support 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 customer

·         Benefits and challenges of CRM:

o   Implementing CRM allows a company to operate more efficiency and effectively in the area of supporting customer needs

o   CRM moves far beyond technology by identifying customer needs and designing specific marketing campaigns tailored to each

o   This enables a firm to treat customers as individuals, gaining important insights into their buying preferences and shopping behaviors

o   Firms that treat their customers well reap the rewards and generally see higher profits and highly loyal customers

·         Personalization occurs when a website can know enough about a person’s likes and dislikes that it can fashion offers that are more likely to appeal to that person

·         CRM implementation strategies:

CRM implementation strategies

1.       Clearly communicate the CRM strategy

2.       Define information needs and flows

3.       Build an integrated view of the customer

4.       Implement in literation

5.       Scability for the organizational growth