Page 267 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Customer Relationship Management Hitesh Jhanji, Lovely Professional University

Notes Unit 11: CRM Measurements

CONTENTS
Objectives
Introduction

11.1 Objectives for CRM Measurement
11.1.1 Influencing Decision-making
11.1.2 Guiding Ongoing Activities

11.1.3 Predicting Future Market
11.2 Factors Making CRM Measurement Complex
11.3 CRM Measurement Frameworks
11.3.1 CRM Metrics to Measure
11.4 Implementing CRM Measurement

11.5 Attributes of a CRM Measurement Framework
11.5.1 Building a Composite Measurement Framework
11.6 Customer Lifetime Value

11.7 Summary
11.8 Keywords
11.9 Review Questions
11.10 Further Readings

Objectives

After studying this unit, you will be able to:

 Describe the meaning and framework of CRM measurement
 Calculate customer lifetime value

 Discuss meaning and drivers of customer equity
Introduction
Hitesh Jhanji, Lovely Professional University
Comprising of several distinct disciplines and cutting across just about all business units within
most companies, Customer Relationship Management (CRM) measurement is complex.
Companies use CRM measurements for different purposes; digital channels provide for new
measurement and product/service distribution options; businesses are fractured internally with
inconsistent communication and often incompatible systems.
One big issue in convincing the top management about allocation of CRM budget is the lack of
proper measurement tools to show the improvements convincingly. What makes CRM
measurement difficult is that the measurement problem is not confined to just measuring
customer behaviour and mindset. Instead, businesses need to measure activities that occur
inside the company, too. CRM measurement also sometimes goes beyond measuring those

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