CUSTOMER RELATIONSHIP MANAGEMENT

Customer Relationship Management (CRM) is a means of managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability

RECENCY, FREQUENCY AND MONETARY VALUE

Organizations can find their most valuable customers through “RFM” - Recency, Frequency, and Monetary value

• How recently a customer purchased items (Recency) 
• How frequently a customer purchased items (Frequency)
• How much a customer spends on each purchase (Monetary Value)

EVALUATION OF CRM 

OPERATIONAL AND ANALYTICAL CRM

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 UGLY SIDE OF CRM

CUSTOMER RELATIONSHIP MANAGEMENT SUCCESS FACTORS

CRM success factors include:

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

 

---