10.1 Customer relationship management (CRM)

What are some CRM marketing metrics?

• Number of campaigns • New customer retention rates • Number of responses by campaign • Number of purchases by campaign

What are some CRM service metrics?

• Number of cases handled by agent • Number of service calls • Percentage of service renewals • Customer satisfaction level • Complaint time-to-resolution

What are some CRM sales metrics?

• Number of prospects • Number of new customers • Number of retained customers • Renewal rate • Number of sales calls

LO 10.5 Critique the future of CRM. (1 of 2)

• creation of location-based mobile apps, particularly apps showing in-store offers based on real-time location matched with content in the CRM • convergence and integration of customer activity based on customer segmentation (such as age, gender, interests), customer data integration and campaign management between vendors to obtain more information about a customer • social media monitoring through the integration of tools

LO 10.1 Describe customer relationship management (CRM) and its role in supporting business operations.

Customer relationship management (CRM) a means of managing all aspects of a customer's relationship with an organisation to endeavour to increase customer loyalty and retention, and the organisation's profitability

LO 10.4 What are some ways to measure the success of CRM?

Managers should use CRM metrics to track and monitor performance. Though it is advised that they do not use more than 7 key CRM metrics out of the hundreds that are available

LO 10.3 Describe, with examples, the types of CRM systems.

1. Operational CRM supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers 2. Analytical CRM supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers 3. Collaborative CRM systems incorporate external contacts such a vendors, suppliers and distributors

LO 10.2 Describe the three phases of CRM.

1. Reporting helps organisations identify their customers across other applications 2. Analysis helps organisations segment their customers into categories, such as best and worst customers 3. Predicting helps organisations make predictions regarding customer behaviour

LO 10.4 Identify the benefits of CRM.

1. helps companies to understand their customers better 2. helps companies to operate more efficiently and effectively in supporting customer needs. 3. enables companies to treat their customers as individuals, gaining important insights into their buying preferances and shopping behaviours.

LO 10.4 Identify the challenges of CRM.

1. the power of the individual customer has grown 2. social media allows the power of the customer to grow stronger than it has ever been 3. organisations need to create a business culture that fosters the free-flow of CRM-related intelligence

LO 10.5 Critique the future of CRM. (2 of 2)

• privacy and permissions as the customers extend their digital interactions. Users are willing to sacrifice some privacy for a specific known reason, but not for other unknown purposes • Gmail integration and other Google apps with CRM. An example of this is Google AdWords where the advertisements featured alongside a search appear after analysis of personalised information stored in Google's CRM • use of data-cleansing tools in CRM as they are used in data warehousing. Incorrect and duplicate data can add many more cycles of time in a service or sales centre