Chapter 9 McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter CHAPTER NINE OVERVIEW SECTION 9.1 – CUSTOMER RELATIONSHIP MANAGEMENT  Customer Relationship Management Fundamentals  Using IT to Drive Operational CRM  Using IT to Drive Analytical CRM  CRM Trends: SRM, PRM, ERM  The Ugly Side of CRM SECTION 9.2 – BUSINESS INTELLIGENCE  Business Intelligence  Operational, Tactical, and Strategic BI  Data Mining  Business Benefits of BI

Chapter CRM FUNDAMENTALS Customer Relationship Customer loyalty and retention Organization profitability

Chapter BUSINESS BENEFITS OF CRM Organizations can find their most valuable customers through “RFM” - Recency, Frequency, and Monetary value.

Chapter EVOLUTION OF CRM Three phases in the evolution of CRM include reporting, analyzing, and predicting

Chapter OPERATIONAL AND ANALYTICAL CRM

Chapter USING IT TO DRIVE OPERATIONAL CRM

Chapter CRM METRICS

Chapter USING IT TO DRIVE ANALYTICAL CRM Personalization – when a Web site knows enough about a persons likes and dislikes that it can fashion offers that are more likely to appeal to that person Analytical CRM relies heavily on data warehousing technologies and business intelligence to glean insights into customer behavior These systems quickly aggregate, analyze, and disseminate customer information throughout an organization

Chapter CRM TRENDS: SRM, PRM, AND ERM Current trends include:  Supplier relationship management (SRM)  Partner relationship management (PRM)  Employee relationship management (ERM)

Chapter BUSINESS INTELLIGENCE Business intelligence (BI) – applications and technologies used to gather, provide access to, and analyze data and information to support decision- making efforts BI enables business users to receive data for analysis that is:  Reliable; Consistent; Understandable; Easily manipulated

Chapter OPERATIONAL, TACTICAL, AND STRATEGIC BI

Chapter BI’S OPERATIONAL VALUE The key is to shorten the latencies so that the time frame for opportunistic influences on customers, suppliers, and others is faster, more interactive, and better positioned

Chapter DATA MINING Data mining – process of analyzing data to extract information Data-mining tools Forms of data mining  Cluster analysis  Association detection  Statistical analysis

Chapter BUSINESS BENEFITS OF BI Benefits of BI include:  Single Point of Access to Information for All Users  BI across Organizational Departments  Up-to-the-Minute Information for Everyone Four main categories of BI benefits:  Quantifiable benefits  Indirectly quantifiable benefits  Unpredictable benefits  Intangible benefits