Ch21 Customer Relationship Management by ezq1pG7K

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									Lamb, Hair, McDaniel


                 CHAPTER 21

         Customer Relationship
             Management




                                 1
  What is Customer Relationship
     Management (CRM)?
• CRM is a company-wide business strategy
  designed to optimize profitability, revenue, and
  customer satisfaction by focusing on highly
  defined and precise customer groups. It involves
  the following tasks.
   –   Identify customer relationships
   –   Understand interactions of the current customer base
   –   Capture customer data
   –   Store and integrate customer data
   –   Identify the best customers
   –   Leverage customer information
             CRM Elaborated
• The central focus of CRM is to manage the
  Customer and Customer Relationship. And, to do
  so we need a CUSTOMER DATABASE. CRM
  focuses on:
   – Creating a customer database
   – Analyzing the database (data mining)
   – Leveraging information from the database
• Few concepts: Lifetime Value Analysis, Predictive
  Modeling
    CRM Database Applications
• Campaign management
• Retaining loyal customers
• Cross-selling other products or services
• Designing targeted marketing communications
• Reinforcing customer purchase decisions
• Introducing product trials by new customers
• Increasing effectiveness of distribution channel
  marketing
• Improving customer service
     Ch 21 Discussion Questions
1. Define customer relationship management
   (CRM) and explain six different tasks
   associated with developing a CRM.
2. Explain/elaborate how a customer database
   can be created, analyzed and leveraged for
   marketing.
3. Explain CRM database applications.

								
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