BUILDING A CUSTOMER CENTRIC ORGANIZATION - CUSTOMER RELATIONSHIP MANAGEMENT

Assalamualaikum everyone. For this post, I will talk about customer relationship management (CRM). First we need to know what is the function of CRM. CRM will allow an organization to :

1. Provide better customer service

2. Make call centers more efficient

3. Cross sell products more effectively

4. Help sales staff close deals faster

5. Simplify marketing and sales processes

6. Discover new customers 

7. Increase customer revenues

An organization can find its most valuable customers by using a formula that industry insiders call RFM - recency, frequency, and monetary value. In other words, an organization must track :

• How recently a customer purchased items (recency).
• How frequently a customer purchases items (frequency).
• How much a customer spends on each purchase (monetary value).

Besides that, we need to know three phases in the evolution of CRM, which is reporting, analyzing and predicting. CRM reporting technologies help organizations identify their customers across other applications. CRM analysis technologies help organizations segment their customers into categories such as best and worst customers. CRM predicting technologies help organizations make predictions regarding customer behavior such as which customer are at risk of leaving. 

Addition to that, we need to be aware of the two primary components of a CRM strategy, which is operational CRM and analytical CRM. Operational CRM supports transactional processing for day to day front office operations or systems that deal directly with customers. As for analytical CRM, it supports back office operations and strategic analysis and includes all systems that do not deal directly with customers.

That's all for today's post. Till we meet again. :)