Page 30 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Unit 2: Customer Value

It provides support to “Front Office” business processes, including sales, marketing and service. Notes
Each interaction with a customer is generally added to a customer’s contact history, and staff can
retrieve information on customers from the database when necessary.

One of the main benefits of this contact history is that customers can interact with different
people or different contact channels in a company over time without having to describe the
history of their interaction each time.
It process customer data for a variety of purposes such as managing campaigns, Enterprise
Marketing Automation (EMA) and Sales Force Automation (SFA).

Till now, this is the primary use of CRM. One characteristic of operational CRM is the possibility
of integrating with the financial and human resources functions of ERP applications.
With this integration, end-to-end functionality from lead management to order breaking can be
implemented.

Analytical CRM

Analytical CRM is the capture, storage, extraction, processing, interpretation and recording
customer data to the user.

Companies such as Micro Strategy have developed applications that can capture this customer
data from multiple resources and then use hundreds of algorithms to analyze and interpret the
data as needed.
The value of the application is not just in algorithm and storage, but also in ability to individually
personalize the response using the data.

It generally makes heavy use of data mining.
It analyzes customer data for the following purposes.
i. Design and execution of targeted marketing campaigns to optimize marketing effectiveness.
ii. Design and execution of specific customer campaigns.

iii. Analysis of customer behaviour to aid product and service decision-making such as pricing
etc.
iv. Aid in taking management decisions such as financial forecasting.

v. Provide a tool in predicting the probability of customer defection.
Collaborative CRM

It is the communication centre, coordination network that provides neural paths to customer
and its suppliers.
It could mean a Partner Relationship Management [PRM] application or a customer interaction
centre.
It could mean communication channels such as web or e-mail, voice applications and even
channel strategies.
In other words, it is any CRM function that provides a point of interaction between customer
and the channel itself.

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