The crm software helps firms identify high value

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Unformatted text preview: Customer Loyalty Management Process Map This process map shows how a best practice for promoting customer loyalty through customer service would be modeled by customer relationship management software. The CRM software helps firms identify high-value customers for preferential treatment. Figure 8-10 8.29 Essentials of Business Information Systems Chapter 8 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications Customer Relationship Management Systems Operational and Analytical CRM • Operational CRM: • Customer-facing applications such as sales force automation, call center and customer service support, and marketing automation • Analytical CRM: • Analyze customer data output from operational CRM applications • Based on data warehouses populated by operational CRM systems and customer touch points • Customer lifetime value (CLTV) 8.30 Essentials of Business Information Systems Chapter 8 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications Customer Relationship Management Systems Analytical CRM Data Warehouse Figure 8-11 Analytical CRM uses a customer data warehouse and tools to analyze customer data collected from the firm’s customer touch points and from other sources. 8.31 Essentials of Business Information Systems Chapter 8 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications Customer Relationship Management Systems Business Value of Customer Relationship Management • Business benefits • Increased customer satisfaction • Reduced direct-marketing costs • More effective marketing • Lower costs for customer acquisition/retention • Increased sales revenue • Churn rate • Number of customers who stop using or purchasing products or services from a company. • Indicator of growth or decline of firm’s customer base 8.32 Essentials of Business Information Systems Chapter 8 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications Enterprise Applications: New Opportunities and Challenges Enterprise Application Challenges • Highly expensive to purchase and implement e...
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