Building a Customer-centric Organization - Customer Relationship Management

Customer Relationship Management (CRM) 

Means of managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and an organization's profitability

• provide better customer service
• make call centers more, efficient
• cross sell products more effectively
• help sales staff close deals faster
• Can obtain overview of the customer's products, account information and purchasing history

The Benefits of CRM

Knowing the customer, especially knowing the profitability of individual customers, is highly lucrative in the financial service industry.

• Allows a company to operate more efficiently and effectively in the area of supporting customer needs
• Enables a firm to treat customers as individuals, gaining important insights into their buying preferences and shopping behaviours.

RFM Formula : recency, frequency and monetary value

EVOLUTION OF CRM

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 customer
3. CRM predicts technological help organizations make predictions regarding customer behavior such as which customers are at risk of leaving.

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

 

WHY CRM MATTERS MORE NOW? 

• The key competitive strategy to stay focused on customer needs and to integrate a customer-centric approach throughout an organization.
• Can acquire enterprise wide knowledge about customer
• Can improve the business processes that deliver value to an organization's customers, suppliers and employees.
• Help a company anticipate customer needs and proactively serve customers in ways that build relationship, create loyalty