CRM is a corporate strategy or tactic in understanding and influencing buyer or customer behavior through communication. It aims to improve acquisition, retention and gain loyalty and profit from buyers or customers. CRM applies customer knowledge to continually improve performance through learning processes that result from success or failure.
The main purpose of CRM is to help businesses in the use of technology and human resources to gain a deep understanding of the value and behavior of their customers (Stewart
Deck on his article in CIO Magazine, October 15, 2001).
Consumer Rating (Customer Valuation)
1. Proxy based
The analysis is based on a group of simple variables, such as the RFM model.
2. Financially
Quantitative analysis based on income and if possible cost information at the individual level.
Usually used by hospitality companies, automotive, etc.
3. Statistics
Developed from the merging of proxy and financial based analysis. In calculating cash flow, assumptions about the length of future and future relationships and developments are used. This analysis is more detail looking at assumptions.
For example, estimating the probability of a purchase, usually using a company with millions of members or data points such as credit cards or telecommunications companies
One of the goals of CRM is to increase the odds, that is by:
1. Develop a communication process with potential or appropriate customers,
2. Provide an appropriate supply in terms of products and prices,
3. Through appropriate or relevant channels and channels
4. The right time.
CRM dimensions
1. Strategic CRM
- Customer values
- Types of competitive differences
- Targeted and market segments
- Strategic positioning
2. Operational CRM.
- Customer service
- Customer data capture
- Customer database
3.Analytical CRM
- Software and hardware for CRM.
- Pareto analysis, profitability analysis, etc.
- Data mining and statistical analysis
Differences in the company's business model of the Traditional Era and the Modern Era
1. Traditional Era
- Companies focus more on "WHAT" not "WHO"
- Trying to sell as many products / services without regard to "who"
who buys
- Standard products for all customers
- Traditional ways of marketing: TV commercials, billboards, etc.
- Waiting for customers to come!
2. Modern Era
- Consumers have more choices
- Competition increases
- Companies are forced to find new ways to interact with consumers to:
1 Lower the price
2 Increase market share
3 The price reduction tactic is not enough to satisfy the customer
The terms in CRM
- Web-based eCRM CRM
- ECRM is a CRM program that views customers from across the enterprise
- PRM is Partner Relationship Management enables companies to manage partners
alliance to provide the most optimal sales channels to customers
- cCRM is a Collaborative CRM, a situation where customers can directly interact with organizations usually via the web (ex: Dell)
- SRM is a Supplier Relationship Management, similar to PRM, focusing to please suppliers, but focus on suppliers
- mCRM is Mobile CRM, providing data to consumers, suppliers and partners through wireless technology
- xCRM is and many other CRM types!
The main purpose of CRM is to help businesses in the use of technology and human resources to gain a deep understanding of the value and behavior of their customers (Stewart
Deck on his article in CIO Magazine, October 15, 2001).
Consumer Rating (Customer Valuation)
1. Proxy based
The analysis is based on a group of simple variables, such as the RFM model.
2. Financially
Quantitative analysis based on income and if possible cost information at the individual level.
Usually used by hospitality companies, automotive, etc.
3. Statistics
Developed from the merging of proxy and financial based analysis. In calculating cash flow, assumptions about the length of future and future relationships and developments are used. This analysis is more detail looking at assumptions.
For example, estimating the probability of a purchase, usually using a company with millions of members or data points such as credit cards or telecommunications companies
One of the goals of CRM is to increase the odds, that is by:
1. Develop a communication process with potential or appropriate customers,
2. Provide an appropriate supply in terms of products and prices,
3. Through appropriate or relevant channels and channels
4. The right time.
CRM dimensions
1. Strategic CRM
- Customer values
- Types of competitive differences
- Targeted and market segments
- Strategic positioning
2. Operational CRM.
- Customer service
- Customer data capture
- Customer database
3.Analytical CRM
- Software and hardware for CRM.
- Pareto analysis, profitability analysis, etc.
- Data mining and statistical analysis
Differences in the company's business model of the Traditional Era and the Modern Era
1. Traditional Era
- Companies focus more on "WHAT" not "WHO"
- Trying to sell as many products / services without regard to "who"
who buys
- Standard products for all customers
- Traditional ways of marketing: TV commercials, billboards, etc.
- Waiting for customers to come!
2. Modern Era
- Consumers have more choices
- Competition increases
- Companies are forced to find new ways to interact with consumers to:
1 Lower the price
2 Increase market share
3 The price reduction tactic is not enough to satisfy the customer
The terms in CRM
- Web-based eCRM CRM
- ECRM is a CRM program that views customers from across the enterprise
- PRM is Partner Relationship Management enables companies to manage partners
alliance to provide the most optimal sales channels to customers
- cCRM is a Collaborative CRM, a situation where customers can directly interact with organizations usually via the web (ex: Dell)
- SRM is a Supplier Relationship Management, similar to PRM, focusing to please suppliers, but focus on suppliers
- mCRM is Mobile CRM, providing data to consumers, suppliers and partners through wireless technology
- xCRM is and many other CRM types!
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