ITM 102 Chapter Notes - Chapter 6: Business Intelligence, Sales Force Management System, Upselling
28 Jun 2018
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ITM - Chapter 6
Customer Relationship Management (CRM): managing all aspects of a customers
relationship with an organization to increase customer loyalty and retention, and an
organizations profitability
Most valuable assets a company can acquire
Makes it hard for companies to steal loyal customers
Able to gain insights into customers shopping and buying behaviors
CRM system traces every communication between the customer and the
organization and provides access to CRM data across different systems (from
accounting to order fulfillment)
Fundamentals of CRM:
CRM as a Business Strategy
Along with being a software, CRM is also a strategy that an organization must
embrace on an enterprise level
A process and business goal enhanced by using information technologies
Helps an organization identify customers and design specific marketing
campaigns tailored to each customer (increasing customer spending)
Increased sales, greater profitability, higher rates of customer loyalty
Business Benefits of CRM
Understands the needs of individual customers are best positioned to
achieve sustainable competitive advantage in the future
Treating customers well is the best source of profitable and sustainable
revenue growth
RFM: Recency, Frequency, Monetary value (determining valuable customers)
oRecency: how recently a customer purchased items
oFrequency: how frequently a customer purchases items
oMonetary Value: how much a customer spends on each purchase
Uses data to create campaigns, promotions, and services
The Evolution of CRM
Able to better predict the financial behavior of individual customers and
assess whether customer will pay back loan in full, or in agreed period
Phases in the evolution of CRM RAP
o1. CRM Reporting Systems: help organizations identify their
customers across other applications
o2. CRM Analysis Systems: help organizations segment their
customers into categories (best/worst customers)
o3. CRM Predicting systems: helps organizations make predictions
regarding customer behavior (risk of leaving)
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Customer relationship management (crm): managing all aspects of a customers relationship with an organization to increase customer loyalty and retention, and an organizations profitability. Most valuable assets a company can acquire. Makes it hard for companies to steal loyal customers. Able to gain insights into customers shopping and buying behaviors. Crm system traces every communication between the customer and the organization and provides access to crm data across different systems (from accounting to order fulfillment) Along with being a software, crm is also a strategy that an organization must embrace on an enterprise level. A process and business goal enhanced by using information technologies. Helps an organization identify customers and design specific marketing campaigns tailored to each customer (increasing customer spending) Increased sales, greater profitability, higher rates of customer loyalty. Understands the needs of individual customers are best positioned to achieve sustainable competitive advantage in the future. Treating customers well is the best source of profitable and sustainable revenue growth.
