Chapter 9
- 1. Customer Relationship Management and Business Intelligence CUSTOMER RELATIONSHIP MANAGEMENT Customer Relationship Management Fundamentals CRM as a Business Strategy A business strategy to try to optimize profitability, revenue, and satisfaction at an individual customer level Business Benefits of CRM A business philosophy based on the premise that those organizations that understand the needs of individual customers are best positioned to achieve sustainable competitive advantages in the future. Evolution of CRM CRM reporting technologies help organizations identify their customers across other applications CRM analysis technologies help organizations segment the customers into categories such as best and worst customers CRM predicting technologies helps organizations make predictions regarding customer behavior such as which customers are at risk of leaving Using it to Drive Operational CRM Marketing and Operational CRM List generator compile customer information from a variety of sources and segment the information for different marketing campaigns
- 2. Campaign Management guides users through marketing campaigns Cross selling and up selling Cross selling is selling additional products or services to a customer Unsealing is increasing the value of a sale Sales and Operational CRM Sales Management CRM Systems automates each phase of the sales process Contact management CRM systems maintains customers contact information and identifies prospective customers Opportunity Management CRM Systems target sales opportunities by finding new customers or companies for future sales. Customer Service and Operational CRM Contact center - customer service call center Web-based self help - customers use the web to find answers Call Scripting – track through similar issues for assistance BUSINESS INTELLIGENCE Applications and technology used to gather information Challenges in business Collecting information
- 3. Discerning patterns and meaning information Responding to resultant information The Solution: Business Intelligence Informed business decisions Retail and sales – predicting sales Banking – forecasting levels of bad loans Operations management – predicting machine failures Brokerage and securities trading 0 predicting bond prices Insurance – forecasting claim amounts Hardware and software – predicting drive failures Law enforcement – tracking crime patterns Health car – correlating demographics of patients with critical illnesses Broadcasting – predicting what is best to air during prime time Marketing - classifying customer demographics that can be used to predict which customers will respond to mailing or buy particular products BI’s Operational Value Data latency is time duration to make ready for analysis Analysis latency is time from which data are made available to the time when analysis is complete
- 4. Decision latency is the time it take a human to comprehend the analytic result and determine the appropriate action