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Unit 5: Customer Relationship Management in Services
relationship analytics helped provide marketers with leads for new customers as well as Notes
insights to help service existing customers through a complicated CRM response model
that allowed it to increase its marketing productivity by targeting the right customers.
The new system could track the inquiries of private customers, provide extended services
and deploy field staff via a central system. The new hosted system freed Socleens in-house
resources to concentrate on business clients and valuable key accounts. The company also
was now in contact with its customers 24x7 compared to previously being available only
during business hours and could handle many customer calls simultaneously by having
increased the number of lines, thereby reducing the amount of lost calls. Its three-tiered
approach to accelerate customer calls based on urgency was vastly superior to its prior
system and all calls were answered with a minimized call-waiting time.
The quick success of Socleens CRM system was due to its ability to prioritize parts of the
implementation. For the first three months, all efforts were devoted to key elements of
the front-end, such as the billing system. Critical to the success of the implementation was
the new systems ability to handle end-of-year billing, which includes sending each
customer an end-of-year statement.
Subsequently, Socleens developed a CRM response model that allowed it to:
(a) Analyze customer profiles and behaviour to help target customers
(b) Automatically identify most likely responders for a communication
(c) Eliminate guesswork by identifying significant variables that affect response
behaviour
(d) Optimize customer communications through contact modelling
(e) Actively target customers directly from charts
(f) Leverage its central database to track and identify opportunities for cross-selling
and up-selling.
(g) Develop new customer-response models using logistic regression algorithms.
Recognizing that it was easier and cheaper to keep existing customers happy and thus,
loyal than it is to acquire new customers, Socleens made the right decision to implement
a CRM system. Socleens understood that a successful CRM implementation could only be
as good as its underlying business processes. Setting out to overhaul its public sector
business practices and image, Socleens has made smart choices by analyzing, defining and
mapping key processes into its new CRM system and developing a model for understanding
customer responses better, resulting in higher profits and a better image.
Questions:
1. What could be the different types of opportunity losses if an organization does not
have a CRM System?
2. What are the organizing implications of installing CRM systems?
Self Assessment
State whether the following statements are true or false:
10. An organisation should retain all its acquired customers.
11. In order to develop a long lasting relationship with the customers, they must conduct
primary research to capture their needs and attitudes.
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