Page 248 - DMGT522_SERVICES MANAGEMENT

Unit 11: Customer Loyalty

to particular promotions or campaigns among targeted customer segments. Customer-service Notes
staff would then be able to deliver higher levels of support and customer satisfaction.

Customer-analysis Solutions

Customer Relationship Analytics (CRA) should enable companies to ensure that their most
profitable customers remain satisfied and that sales and marketing efforts are aimed at retaining
good customers and attracting the right prospects.
Customer-Relationship Analytics should include several analytical views addressing the areas
of:
Customer value assessment, for examining customer – and channel – value from multiple
perspectives, such as lifetime sales, gross margin contribution, and by factors that affect
profitability such as discounts, freight and handling, and average selling price.

By understanding the relative value of each customer, companies can begin to focus sales
and marketing efforts on the most profitable customers and those with the most profit
potential.

Customer acquisition and targeted selling, for additional profiling, segmentation and
ranking of customers based on the propensity to buy, order frequency, and overall
purchasing behaviour.
With this, businesses can apply specialised metrics to segment customers and then build
specific promotions or sales efforts around select customer-groups.

Customer management, for understanding the impact of order fulfillment, returns and
call-centre activity on actual sales performance. This will allow companies to review year-
to-date sales and revenue and problems reported by customers to identify correlations
and better understand how customer service issues are impacting profits.

Did u know? Customer-analysis solutions should allow companies to adopt a more customer-
centric approach to doing business, through in-depth analysis and grouping of customers based
on purchasing behaviour, future marketing opportunities and customer service levels.
Additionally, analytics could also be used to measure:
Sales Performance Management;
Marketing Performance Management;
Manufacturing Performance Management;
Procurement Performance Management;
e-Business Performance Management;
Customer Relationships and
Activity Cost Management.

Technology Drivers

A formal CRM technology solution is not required to implement a customer- relationship
analytics program. What is required is some level of integration between customer-facing
applications – such as call-centre or web systems – and back-end systems. Front office systems
providing data pertaining to customer transactions and inquiries can be matched up with back-
end financial systems that have records of customer credit and invoices. In addition, many

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