- 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
- Enables a firm to treat customers as individuals, gaining important insights into their buying preferences and shopping behaviours
- Allows a firm to ensure that these customers receive the highest level of customer service and are offered the first opportunity to purchase new products
- An organization must track
- How recently a customer purchased items
- How frequently a customer purchases items
- The monetary value of each customer purchase
- Firm can analyze it to identify patterns and create marketing campaigns and sales promotions for different customer segments
Evolution of CRM
- CRM reporting technologies help organizations identify their customers across other applications
- CRM analysis technologies help organizations segments their customers into categories such as best and worst customers
- CRM predicting technologies help organizations predict customers behaviour
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| evolution of CRM |
- Operational CRM supports traditional transactional processing for day-to-day front office operations or systems to 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
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| Operational CRM and Analytical CRM |