1. Customer Relationship Management
Managing with an organization with the goal of increasing customer loyalty and retention and an organization's profitability

2. Customer Relationship Management (CRM)
CRM is a business philosophy based on the premise that those organizations that are best positioned to achieve a sustainable competitive advantage.
A customer first approach that revolves around
Shift from product focus to customer focus
Product: sell one product to as many customers as possible
Customer: sell one customer as many products as possible
Who are the best customers?
Which products are the most profitable?

3. Phases of CRM What are we trying to do with CRM?
Know who our customers are?
Analyze the customer to understand what the customer is doing.
Find new customers just like our existing customers

4. Types of CRM
Operational CRM – supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers (marketing, customer service, sales, billing, etc.)
Analytical CRM – supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers (accounting, finance, human resources, data warehouses)
Operational CRM supports transaction processing for systems that deal directly with the customers. The systems that deal directly with customers are the front-office operations.
Can you list a few examples of front-office systems?
Customer service, sales, billing
Analytical CRM supports strategic analysis and all of the systems that do not directly deal with the customers. These types of systems are the back-office operations.
Can you list a few examples of back-office systems?
Accounting, finance, human resources, data warehouses
Ask your students which systems are more important to an organization – front-office or back-office
Ans: Both, one cannot function without the other
The primary difference between operational CRM and analytical CRM is the direct interaction between the organization and its customers.

5. Operational CRM Analytical CRM
Customer has with system (touches )
Sales software which helps automate the selling process.
Customer that are used to all instances of contact with a customer (database technology).
Emotion detection software
Web-based
Click-to-talk/chat buttons
Call scripting system
Results from data (no
Data warehouse technologies
Business intelligence tools
Data Analysis techniques
It is used to support decision making and data analysis by identifying patterns to help the organization understand its customers.
P – when a knows enough about a person’s likes and dislikes that it can fashion offers that are more likely to appeal to that person
Determine the of an individual customer
Who gets what level of customer service or level of personal contact?
Create /deals based upon the results of data analysis.

6. Information Technology and Customer Relationship Management
Advances in information technology are making it possible to gain a greater understanding of the customers who are buying your products. If an organization understands the characteristics of its customers, it is then in a better position to meet customer needs, and therefore generate even more business.
How are we going to use all of this customer data that we have collected?
Information Technology is simply a TOOL that can be used to better serve the customer.
How can customer interactions be made easier?
If you understand customer characteristics, you are then positioned to better serve customers (mine what you have to gain a clearer understanding).
Result: increase customer loyalty and probably increase revenues
Managing all aspects of a customer’s relationship with an organization with the goal of increasing customer loyalty and retention and an organization's profitability

7. April 23 was Sunday