Friday, September 20, 2013

CHAPTER 11: BUILDING A CUSTOMER-CENTRIC ORGANIZATION - CUSTOMER RELATIONSHIP MANAGEMENT

SALAM SEJAHTERA KEPADA YG SEDANG MEMBACA NOTA SAYA INI...
insyaalah...nota ini akan membantu anda...

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

CRM is a business philosophy based on the premise that those organizations that understand the needs of individual customers are best positioned to achieve sustainable competitive advantage in the future.

·      A customer strategy starts with understanding who the company's customers are and how the company can meet strategic goals.

·   As the business world increasingly shifts from product focus to customer focus, most organizations recognize the treating existing customers well is the best source of profitable and sustainable revenue growth in the age of e-business; however, an organization is challenged more than ever before to truly satisfy its customers.

CRM enables an organization to:

      i.        Provide better customer service
    ii.        Make call centers more efficient
   iii.       Cross sell products more effectively
   iv.        Helps sales staff close deals faster
    v.        Simplify marketing and sales processes
   vi.        Discover new customers
  vii.        Increase customer revenues



RECENCY, FREQUENCY AND MONETARY VALUE (RFM)

An organization can find its most valuable customers by using a formula that industry insiders call FRM:

a)      How recently a customer purchased items (recency)
b)      How frequently a customer purchased items (frequency)
c)       How much a customer speeds on each purchased (monetary value)




THE EVOLUTION OF CRM

Ø  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:

      i.        CRM Reporting technology help organizations identify their customers across other applicants
    ii.        CRM analysis technology helps organizations segment their customers into categories such as best and worst customers.
   iii.        CRM predicts technological help organizations make predictions regarding customer behavior such as which customers are at risk of leaving.


Figure 1: The phases in evolution of CRM



USING ANALYTICAL CRM TO ENHANCE DECISION

2 primary components of a CRM strategy:

1.       Operational CRM: supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers.
For examples, campaign management, e-marketing, telemarketing, tele-selling, e-selling, field sales.

2.       Analytical CRM: supports back-office operations and strategic analysis and includes all system that does not deal directly with the customers.
For examples, develop customer profiles, analyze customer or product profitability, and identify trends in sales length cycle.

Figure 2: The overview of operational CRM and analytical CRM



3.   Personalization: when a Web site knows enough about a person’s likes and dislikes that it can fashion offers that are more likely to appeal to that person

v  Analytical CRM relies heavily on data warehousing technologies and business intelligence to collect insights into customer behavior
v These systems quickly aggregate, analyze, and disseminate customer information throughout an organization



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


the end bebeh...tak panjang pun chapter ni...

apa2 pun sedapnya kalo dpt mkn PAVLOVA!!!


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