Building a Customer-Centric Organization – Customer Relationship Management

Customer Relationship Management (CRM)

•CRM enables an organization to:

–Provide better customer service

–Make call centers more efficient

–Cross sell products more effectively

–Help sales staff close deals faster

–Simplify marketing and sales processes

–Discover new customers

–Increase customer revenues

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)

The Evolution of CRM

•CRM reporting technology – help organizations identify their customers across other applications

•CRM analysis technologies – 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