1. CHAPTER 11
Building a Customer-Centric Organization—Customer Relationship Management

2. LEARNING OUTCOMES
11.1 Compare operational and analytical customer relationship management 11.2 Identify the primary forces driving the explosive growth of customer relationship management 11.3 Define the relationship between decision making and analytical customer relationship management 11.4 Summarize the best practices for implementing a successful customer relationship management system

3. CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
CRM enables an organization to:
Provide better customer service
Make call centers more efficient
Cross sell products more effectively
Help sales staff close deals faster
Simplify marketing and sales processes
Discover new customers
Increase customer revenues

4. RECENCY, FREQUENCY, AND MONETARY VALUE
An organization can find its most valuable customers by using a formula that industry insiders call RFM:
How recently a customer purchased items (recency)
How frequently a customer purchases items (frequency)
How much a customer spends on each purchase (monetary value)

5. THE EVOLUTION OF CRM

6. THE UGLY SIDE OF CRM: WHY CRM MATTERS MORE NOW THAN EVER BEFORE

7. THE UGLY SIDE OF CRM: WHY CRM MATTERS MORE NOW THAN EVER BEFORE

8. CUSTOMER RELATIONSHIP MANAGEMENT’S EXPLOSIVE GROWTH
CRM Business Drivers

9. USING ANALYTICAL CRM TO ENHANCE DECISIONS
Operational CRM – supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers
Analytical CRM – supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers

10. USING ANALYTICAL CRM TO ENHANCE DECISIONS
Operational CRM and analytical CRM

11. CUSTOMER RELATIONSHIP MANAGEMENT SUCCESS FACTORS
CRM success factors include:
Clearly communicate the CRM strategy
Define information needs and flows
Build an integrated view of the customer
Implement in iterations
Scalability for organizational growth

12. OPENING CASE STUDY QUESTIONS SecondLife
Why is it important for any company to use CRM strategies to manage customer information?
How are CRM strategies in Second Life different from CRM strategies in the real world?
If the virtual world is the first point of contact between a company and its customers, how might that transform the entire shopping experience?
How could companies use Second Life to connect with customers that would be difficult or too expensive in the real world?

13. CHAPTER ELEVEN CASE Can You Find Your Customers?
Entrepreneurship is all about finding niche markets, an untapped potential in a corner of an existing market ignored by major companies
Finding customers for a specialized or niche business is no longer an arduous manual task
Somewhere there is a list of names that will allow a business, no matter how niche, to locate its specific target customers

14. CHAPTER ELEVEN CASE QUESTIONS
Explain how technology has dramatically impacted the efficiency and effectiveness of finding customers
Explain the two different types of CRM systems and explain how a company can use infoUSA’s database for creating a CRM strategy

15. CHAPTER ELEVEN CASE QUESTIONS
Describe three ways a new small business can extend its customer reach by performing CRM functions from an infoUSA database
infoUSA discussed three distinct steps company owners must take to use databases effectively. Rank these steps in order of importance to a CRM strategy