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Customer Relationship Management
Definition
CRM is both a strategic vision and an operational capability to deliver on a defined customer experience designed to attract, retain and strengthen the relationship with its customers.
Organizations must understand their customer needs in order to capture their wallet-share. This means engaging the customer as he/she demands, capturing the knowledge from each event and gaining insights to anticipate future needs.
Key Focus Areas
* Customer Profitability and Channel Analysis
* Optimized Channel Design and Integration
* Customer Satisfaction / Loyalty
* Web Site Assessment and Usability
Why CRM?
- ADP improved customer retention rate by 5% and increased revenue by $100 million in 1999 by providing customer service reps with detailed client information
- A 10% improvement in customer management operations can result in $40-50million/year in pretax profits ($1billion company; Andersen Consulting)
- Williams-Sonoma/Pottery Barn achieve 12% response to targeted online promotions versus typical 1% response to e-mail solicitations
- Marriott properties generated an additional $55 million in cross-chain sales (1998) UPS saves $450,000 a day in support costs by providing self-service package tracking via the internet
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