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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