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Unit 5: Customer Relationship Management in Services

relationship analytics will help distinguish whether customers are part of high-profit or high- Notes
maintenance segments.
Customer-relationship analytics take on the role of a highly sophisticated marketing department.
These tools identify your most valuable customers, group these customers based on purchasing
behaviour and other attributes, and target them with promotions and sales efforts designed to
increase customer loyalty and sales revenue. By understanding the relative value of each customer,
you can then focus sales and marketing efforts on the most profitable segments. Customer
relationship analytics can impact the company’s overall bottom line as well.

Notes Recent research by Accenture finds a direct correlation between customer
relationship analytics and business revenues. More the increase in CRM performance
more is the incremental revenue to the business. Accenture’s research examined specific
CRM initiatives that can directly enhance revenues. They discovered that the top three
initiatives having the greatest impact on the bottom line include fostering high levels of
customer service, encouraging strong employee motivation, and turning customer
information into insight, i.e., analytics. The highest-performing companies give their
frontline employees quick, easy access to critical data - purchases, contact history and
product inquiries, as well as demographic and lifestyle data. They also observed that
successful companies share this same analytic information with trading partners across
the supply chain.
Significantly, these successful CRM companies did not view CRM as an IT project relegated to a
specific department. Rather, they viewed CRM as an enterprise-wide initiative. Most CRM
implementations have been fragmented, implemented within departments without a cross-
organizational perspective.
Customer-relationship analytics need to be shared at all levels across the organization. Inside
and in the field, sales personnel could then see higher levels of qualified customers, lower costs
of sales, and more sales closed. Marketing can then be able to track responses and predict results
to particular promotions or campaigns among targeted customer segments. Customer-service
staff would then be able to deliver higher levels of support and customer satisfaction.

Customer-Analysis Solutions

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. 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.

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