ADM 2372 Lecture 6: Ch.6-Customer-Relationship-Management
1 Dec 2016
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Document Summary
Customer relationship management (crm): involves managing all aspects of a customer"s relationship with an organization to increase customer loyalty and retention, and an organization"s profitability. Crm as a business strategy: crm is a process and business goal enhanced by using it. A crm system helps an org identify customers and design specific marketing campaigns tailored to each customer, thereby increasing customer spending. : in a casino, customer use their loyalty card in the slot machines. The co. can see if a customer is unlucky and force the luck with small perks to soothe the pain of gambling losses. Business benefits of crm: a hosted and managed solution has a total cost of ownership 1/7th that of an in-house solution, since there"s no capital outlay required for an hosted crm solution and pmt comes from operational budget. Org. can find its most valuable customer by using rfm: recency, frequency and monetary value.
