Sunday, February 23, 2014

chapter 11: Building a Customer-centric Organization- CRM

Hello :)
So before we start... here is a short video to brief you in to what is CRM...enjoy :)



Recently, Frequency, and Monetary Value

An organization can find its most valuable customers by using a formula that industry insiders call RFM-recency, frequency, and monetary value. In other words, an organization must track:
- How recently a customer purchased items (recently)
- How frequently a customer purchases an item (frequently
- How much a customer spends on each purchase (monetary value)


The evolution of CRM
Knowing the customer, especially knowing the profitability of individual customers, is highly lucrative in the financial service industry.

There are three phases in the evolution of CRM:
1.                               CRM Reporting technology help organizations identify their customers across other applicants
2.                               CRM analysis technology helps organizations segment their customers into categories such as best and worst customers.
3.                               CRM predicts technological help organizations make predictions regarding customer behavior such as which customers are at risk of leaving.
 
Using Analytical CRM to Enhance Decisions
The two components of a CRM strategy are:
- Operational CRM supports 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 customers.
The primary difference between operational CRM and analytical CRM in the direct interaction between the organization and its customer
 
The Ugly Side of CRM: Why CRM Matters More Now than Ever Before
Now companies have no choice as the power of the customer grows exponentially as the internet grows. In every case, customers have become an integral part of the action as a member of the aggregated, interactive, self-organizing, auto-entertaining audience on businesses. However, this should no be a surprise, since it was the customers crazy passion and hobbies and obsessions-that build up the web in the first place.
                                                                                           - Have a good day-

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