CHAPTER 11: BUILDING A CUSTOMER-CENTRIC ORGANIZATION (CUSTOMER RELATIONSHIP MANAGEMENT)

Formula that industry insiders call RFM (recency, frequency, 

and monetary value):

 v How recently a customer purchased items (recency)

 v How frequently a customer purchases items (frequency)

 v How much a customer spends on each purchase (monetary value)

The Evolution of CRM:

 I Reporting Customer Identification

 I Analyzing Customer Segmentation

 I Predicting Customer Prediction

Operational CRM – supports traditional transactional processing for 

day-to-day front-office operations or systems that deal directly with the

 customers

Analytical CRM – supports back-office operations and strategic analysis 

and includes all systems that do not deal directly with the customers

CRM success factors include:

 J Clearly communicate the CRM strategy

 J Define information needs and flows

 J Build an integrated view of the customer

 J Implement in iterations

 J Scalability for organizational growth