CHAPTER 11: 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.

The Benefits of CRM

• companies that understand individual customer needs are best positioned to achieve success.
• building successful customer relationship is not a new business practise , however, implementing CRM systems allows a company to operate more efficiently and effectively in the area of supporting customer needs.

 Evolution of CRM

1. CRM Reporting technologies - help organizations segment their customer across other applications.
2. CRM Analysis technologies - help organizations segment their customer into categories such as best and worst customers.
3. CRM Predicting technologies - help organizations predict 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.