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Unformatted text preview: 1 STRATEGY GUIDE • Exploring the future state of the CRM Market Exploring the Future State of the CRM Market S T R AT E G Y G U I D E » INSIDE: An Introduction to CRM How to Install a Usable CRM System CRM: Finding the Treasure in Your Customer Data The Future State of the CRM Market Learn how CRM works, how best to install a CRM system, how to uncover treasure in your customer data and much more. Read on to discover what will drive CRM growth in the future and what will inhibit it, as well as which organisations hold the key to the future CRM Market. Sponsored by Oracle www.oracle.com.au 2 STRATEGY GUIDE • Exploring the future state of the CRM Market An Introduction to CRM What is CRM? CRM stands for Customer Relationship Management. It is a strategy used to learn more about cus- tomers’ needs and behaviors in order to develop stronger relationships with them. Good customer relationships are at the heart of business success. There are many technological components to CRM, but thinking about CRM in primarily technological terms is a mistake. The more useful way to think about CRM is as a strategic process that will help you better understand your customers’ needs and how you can meet those needs and enhance your bottom line at the same time. This strategy depends on bringing together lots of pieces of information about customers and market trends so you can sell and market your products and services more effectively. What is the goal of CRM? The idea of CRM is that it helps businesses use technology and human resources to gain insight into the behavior of customers and the value of those customers. With an effective CRM strategy, a business can increase revenues by: • providing services and products that are exactly what your customers want • offering better customer service • cross selling products more effectively • helping sales staff close deals faster • retaining existing customers and discovering new ones That sounds rosy. How does it happen? It doesn’t happen by simply buying software and installing it. For CRM to be truly effective, an or- ganisation must fi rst understand who its customers are and what their value is over a lifetime. The company must then determine what the needs of its customers are and how best to meet those needs. For example, many fi nancial institutions keep track of customers’ life stages in order to market appropriate banking products like mortgages or IRAs to them at the right time to fi t their needs. Next, the organisation must look into all of the different ways information about customers comes into a business, where and how this data is stored and how it is currently used. One company, for instance, may interact with customers in a myriad of different ways including mail campaigns, Web sites, brick-and-mortar stores, call centres, mobile sales force staff and marketing and advertising efforts. CRM systems link up each of these points. This collected data fl ows between operational systems (like sales and inventory systems) and analytical systems that can help sort through these...
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This note was uploaded on 03/12/2010 for the course ECON CRM taught by Professor Prof during the Spring '10 term at École Normale Supérieure.
- Spring '10