CRM is an information industry term for methodologies, software and usually Internet capabilities that help an enterprise manage customer relationships in an organized way.
CRM is the process of managing all aspects of interaction a company has with its customers, including prospecting, sales and service.
CRM applications attempt to provide insight into and improve the company/customer relationship by combining all these views of customer interaction into one picture.4
CRM is an integrated approach to identifying, acquiring and retaining customers. By enabling organizations to manage and coordinate customer interactions across multiple channels, departments, lines of business and geographies, CRM helps organizations maximize the value of every customer interaction and drive superior corporate performance.5
CRM is an integrated information system that is used to plan, schedule and control the pre-sales and post-sales activities in an organization. CRM embraces all aspects of dealing with prospects and customers, including the call centre, sales-force, marketing, technical support and fi eld service. The primary goal of CRM is to improve long-term growth and profi tability through a better understanding of customer behaviour. CRM aims to provide more effective feedback and improved integration to better gauge the return on investment (ROI) in these areas.6
CRM is a business strategy that maximizes profi tability, revenue and customer satisfaction by organizing around customer segments, fostering behaviour that satisfi es customers and implementing customercentric processes.
Type of CRM
CRM is a core customer-centric business strategy that aims at winning and keeping profitable customers * Customer Segmentation
* Trend Analysis
Operational CRM focuses on the automation of customer-facing processes such as selling, marketing and customer service
Analytical CRM focuses on the intelligent mining of customer-related data for strategic or tactical purposes
Collaborative CRM applies technology across organizational boundaries with a view to optimizing company, partner and customer value
Strategic CRM at Boise Office Solutions
In 1998 the CEO of Itasca, Illinois-based Boise Office Solutions, decided that the only way to escape the bruising price competition and razor-thin margins of offi ce supply superstores such as Staples and Offi ce Depot was to provide greater value through superior customer service, with the support of a CRM system. Three years and $20 million later, the $3.5 billion subsidiary of Boise Cascade switched on a CRM system that differentiated them from other competitors in the offi ce supplies industry. The company can now share customer data across fi ve business units, 47 distribution centres and three customer service centres. This has allowed Boise to cross-sell, retain and service accounts much more effectively. One of the CRM system’s many features is web collaboration which allows representatives to co-browse and chat with customers online while making recommendations.
Operational CRM (SFA) at Roche
Roche is one of the world’s leading research-based healthcare organizations, active in the discovery, development and manufacture of pharmaceuticals and diagnostic systems. The organization has traditionally been product-centric and quite poor in the area of customer management. Roche’s customers are medical practitioners prescribing products to patients. Customer information was previously collected through several mutually exclusive sources, ranging from personal visits to handwritten correspondence, and not integrated into a database or central fi ling system, giving incomplete views of the customer. Roche identifi ed the need to adopt a more customer-centric approach to understand their customers better, improve services offered to them and to increase...
Please join StudyMode to read the full document