ITM 102 Lecture Notes - Lecture 6: Opportunity Management, Data Integrity, Supplier Relationship Management
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ITM102 - Business Driven Information Systems - Lecture 6: Customer Management
Customer relationship management
● Involves managing all aspects of a customer’s relationship with an organization to
increase loyalty and profitability.
● As a business strategy, CRM enables an organization to follow suit with many things.
○ Providing better customer service to individuals.
○ Making call centers and cross-selling products easier through promotional offers.
○ Helping sales staff close deals faster; including the simplification of marketing
and sales processes.
○ Discovering new customers which allow an increase in customer revenue.
● CRM finds valuability in customers through “RFM”, or Recency, Frequency and
○ How recently an item is purchased; how frequently a customer purchases items
and how monetary the value is of each purchase.
● Operational customer service management - supports traditional transaction processes,
including daily frontal office operations that deal with customers.
● Analytical customer service management - supports middle and upper management
operations and strategic analysis of systems that deal directly with customers.
● List generators - compile customer data for marketing campaigns.
○ Campaign management systems - guiding campaign planners through key tasks.
○ Cross-selling and up-selling strategies - identifying customer needs and interests
through additional product inquiries and values.
● Sales force automation - systems that track all steps in the sale process.
○ Sales management CRM -- automates each phase of the sale process helping
individual representatives stay organized.
○ Contract management CRM - maintains customer contact information and future
○ Opportunity management CRM - targets sales opportunities by finding new
● There are three customer service operational CRM technologies: a contact center, web-
based self service system and a call scripting system.
Using information systems to drive CRM
● Analytical CRM - digs deep into company data to expose and create customer behavior
● Personalization - when web sites pre-select options based upon preference visits by
● Analytical CRM has vital information about customers that incentivizes them revisiting an
○ Giving customers more of what they want; and a similar positive experience to
the best customers.
○ Finding out what the organization does best through: beating competitors,
reactivating inactive customers and letting them know they matter.