CRM stands for Customer Relationship Management. It is an information industry term that helps manage customer relationships in an organised way. For example, a company might build a database about its customers decribed with enough information so all sectors in the company could access the information needed to create products, send out new offerings and creating new forms of advertisements.
CRM enables:
- Industries to find their best/ loyal customers and create a database based on their needs and wants.
- Industries to create a more personalised approach to each of their customers.
Below: Video explaining CRM
http://www.youtube.com/watch?v=s6XN0j9F3Yo
Compare operational and analytical customer relationship management.
Analytical-- Is a DSS (Decision Support System) targeted to help senior executives, marketers and sales divisions to better understand their customers, in ways such as:
* Getting to know the company's interaction with their customers.
* Finding out customer's buying cycle (e.g- what times in the yr do they mostly purchase a certain item)
Operational-
- Directly provides help and support for front line services in all sectors of a company. This includes:
* Sales, customer service and marketing divisions.
- It highly relies on computer technology to achieve its goals.
Describe and differentiate CRM technologies used by marketing departments and sales departments:
Marketing Departments:
List generator – compiles customer information from a variety of sources and segment the information for different marketing campaigns.
Campaign management system – guides users through marketing campaigns.
Cross-selling – selling additional products or services.
Up-selling – increasing the value of the sale.
Sales Departments
Sales management CRM system – automates each phase of the sales process, helping individual sales representatives coordinate and organize all of their accounts.
Contact management CRM system – maintains customer contact information and identifies prospective customers for future sales.
Opportunity management CRM system – targets sales opportunities by finding new customers or companies for future sales.
How could a sales department use operational CRM technologies?
By the use of the following operational CRM technologies, sales departments could discover:
Sales management CRM system- Number of sales calls
Contact management CRM system- Number of current and new customers
Opportunity management CRM system- New and exsisting revenue
These systems make it easier to keep track of trends and changes occuring in the sales departments within the operations front line. By looking at changes over the years, this would help to see where their strengths and weaknesses lie for future changes.
Describe business intelligence and its value to businesses
Business intelligence (BI) are technologies and applications used to collect, organise and analyse data and information to support decision making efforts. An example of this includes data mining. It has very high value in a business as it is relied on for many different aspects such as Pivot Table on Microsoft Access. BI enables companies to make decisions based on current and future trends and helps to organise and plan them in a sequential order while putting into account the time needed to complete each task.
Below: An example of BI
Explain the problem associated with business intelligence. Describe the solution to this business problem
As companies may have alot of data, they may not benefit from turning it into meaningful information and useful data for analytical and strategic decision making. This could be the result of not having the right software to generate sucessful outputs. The problem with today's organisations is that some find it hard to understand all their strengths and weaknesses. The result could be from all departments not having access to the data for them to interpret it into useful information. The problem that many face in the end is data rich and infomation poor.
Below: A video expample of problems occuring with business intelligence
What are two possible outcomes a company could get from using data mining?
The two possible outcomes a company could get from data miming are:
- Increase profits and allow an organisation to have better sales and confined resources.
- Statistical analysis: Consists of assessing the data trends throught the help of a regression analysis and statistics. This allows emmployees to construct statistical models and to compare which is more suitable to be used in the organisation.
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