chapter 11 : Buildinga a customers - centric organization-customer relationship management.

CRM enables an organization to:
-provide better customer service.
-make call centers more efficient.
-cross sell products more effectively.
-increase customer revenues.


Organizations can find theirs most valuable customers through ''RFM'' - Recency, Frequency, and Monetory value.
-How recently a customer purchased items.
-How frequently a customer purchased items.
-How much a customer spends on each purchase.


The evolution of CRM

• CRM reporting technology - help organizations identify their customers across other applications.
• CRM- help organization segment their customers into categories such as best and worst customers.
• CRM predicting technologies- help organizations make predictions regarding customer behavior such as which customers are at risk of leaving.

 Using Analytical CRM to enchance decisions

• operational CRM-support traditional transactional processing for day to day front office operations or systems that deal directly with customers.

• analytical CRM - supports back office operation and strategic analysis and includes all systems that do not deal directly with the customers. 

 CRM success factors

1. Clearly communicate the CRM strategy
2. Define information needs and flows
3. Build an integrated view of the customer
4. Implement in iterations