RFM - Today's Class Definitions of CRM Goals of CRM...

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Today’s Class Definitions of CRM Goals of CRM Recency, Frequency, Monetary Value Example of RMF
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Customer Relationship Management (CRM) The business and technology discipline to coordinate all of business processes for dealing with customers. Laudon and Laudon ‘02 “Instead of treating customers as exploitable sources of income, businesses are now viewing them as long-term assets to be nurtured through CRM.”
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Goals of CRM Retention rate: CRM, relationship building, increases customer loyalty which increase revenue per customer and frequency of purchases. Referrals: CRM can turn customers into advocates. Referrals typically have higher retention rates and spending rates than other newly acquired customers. Increased sales : CRM leads to increased cross-selling, upgrades, or simply more products by existing customers. Reduced costs: CRM can lead to more cost effective marketing; avoids expenses of mass marketing, free-up sales professionals, reduces direct mailings.
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This note was uploaded on 02/11/2012 for the course CIT 3013 taught by Professor Staff during the Spring '08 term at Arkansas State.

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RFM - Today's Class Definitions of CRM Goals of CRM...

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