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Chapter 12: Extending the organization to customers. In this chapter, the learning objectives are: Defining customer relationship management, operational customer relationship management, other types of customer relationship management systems. | CHAPTER 12 Customer Relationship Management CHAPTER OUTLINE 12.1 Defining Customer Relationship Management 12.2 Operational Customer Relationship Management Systems 12.3 Analytical Customer Relationship Management Systems 12.4 Other Types of Customer Relationship Management Systems LEARNING OBJECTIVES Identify the primary functions of both customer relationship management (CRM) and collaborative CRM Describe how businesses might utilize applications used in each of the two major components of operational CRM systems Discuss the benefits of analytical CRM to businesses Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, and open-source CRM systems 12.1 Defining Customer Relationship Management The Need for CRM It costs six times more to sell to a new customer than to sell to an existing one. A typical dissatisfied customer will tell 8-10 people. By increasing the customer retention rate by 5%, profits could increase by 85%. Odds of selling to new customers = 15%, compared to the odds of selling to existing customers (50%) 70% of complaining customers will remain loyal if their problem is solved Tenets of CRM One-to-one relationship between a customer and a seller. Treat different customers differently. Keep profitable customers and maximize lifetime revenue from them. 12.2 Operational Customer Relationship Management Systems Operational Customer Relationship Management Systems Two major components of operational CRM Customer-facing applications Customer-touching applications Customer-Facing Applications Customer service and support Sales force automation Marketing Campaign management Marketing Cross selling Up selling Bundling Customer-Touching Applications Search and comparison capabilities Technical and other information and services Customized products and services Loyalty programs 12.3 Analytical Customer Relationship Management Systems Analytical Customer Relationship Management Systems Analytical CRM systems analyze customer behavior and perceptions in order to provide actionable business intelligence. 12.4 Other Types of Customer Relationship Management Systems Other Types of Customer Relationship Management Systems On-demand CRM Mobile CRM Open-source CRM Closing Case #1 The Problem The Solution The Results Closing Case #2 The Problem The Solution The Results | CHAPTER 12 Customer Relationship Management CHAPTER OUTLINE 12.1 Defining Customer Relationship Management 12.2 Operational Customer Relationship Management Systems 12.3 Analytical Customer Relationship Management Systems 12.4 Other Types of Customer Relationship Management Systems LEARNING OBJECTIVES Identify the primary functions of both customer relationship management (CRM) and collaborative CRM Describe how businesses might utilize applications used in each of the two major components of operational CRM systems Discuss the benefits of analytical CRM to businesses Explain the advantages and disadvantages of mobile CRM systems, on-demand CRM systems, and open-source CRM systems 12.1 Defining Customer Relationship Management The Need for CRM It costs six times more to sell to a new customer than to sell to an existing one. A typical dissatisfied customer will tell 8-10 people. By increasing the customer retention rate by 5%, profits could increase by 85%. Odds
