CHAPTER 11 BUILDING A CUSTOMER-CENTRIC ORGANIZATION ( CUSTOMER RELATIONSHIP MANAGEMENT )

CHAPTER 11 : Building a Customer-Centric Organization – Customer Relationship     Management

1.      Compare operational and analytical customer relationship management.

Operational CRM	Analytical CRM
·         Deal directly with the customers	·         Do not deal directly with customers
·         Supports back-office operations	·         Supports traditional transactional processing for day-to-day front-office operations
·         Example: Campaign management, e-marketing, telemarketing and e-selling.	·         Example: Develop customer profiles and analyze customer or product profitability.

2.      Identify the primary forces driving the explosive growth of customer relationship management.

·   Automation/Productivity/Efficiency

·   Competitive advantage

·   Customer demands/requirements

·   Increase revenues  

·   Decrease costs

·   Customer support

·   Inventory control

·   Accessibility

3.      Define the relationship between decision making and analytical customer relationship management.

The relationship between decision making and analytical customer relationship management is analytical CRM is primarily used to enhance and support decision making and works by identifying patterns in customer information collected from the various operational CRM systems. Analytical CRM also is the solutions that are designed to dig deep into a company’s historical customer information and expose patterns of behavior on which a company can capitalize.

4.      Summarize the best practices for implementing a successful customer relationship management system.

5.       

There are several best practices for implementing a successful customer relationship management system.

Firstly, clearly communicate the CRM strategy. This practice started with a clear business objective for the system to provide customer with greater economic value.

Next, define information needs and flows. People who perform successful CRM implementations have a clear understanding of how information flows in and out of their organizations.

Other than that, build an integrated view of the customer can support organizational requirement. This system must have the corresponding functional breadth and depth to support strategic goals.

Plus, implement in iterations. This allows the organizations to find out early if the implementation is headed for failure and thus either kill the project and save wasted resources or change direction to a more successful path.

Lastly, scalability for organizational growth. Understanding how the organization is going to grow, predicting how technology is going to change and anticipating how customers are going to evolve.