Customer Relationship Management (CRM).pptVIP

* Again, we will discuss data warehousing in the next module. From this slide you should be able to see the different channels that customer data could be obtained from. All of that data would be stored in the data warehouse, and then analytical tools would be used to discover who the most profitable customers are, etc. * Many CRM markets exist. Here are five segments: Traditional out-of-the-box CRM: This segment includes the enterprise vendors, for example, PeopleSoft, Siebel Systems, Oracle, and SAP. It is often necessary for customization to occur in this segment. This usually occurs within the company’s IT department. Traditional CRM with templates for specific vertical industries: This segment is offered by all the major vendors except Oracle. It allows the company’s IT department to select the functionality needed for a specific business from 20 or more vertical categories. Traditional out-of-the-box CRM with application development hooks: In this segment, vendors provide reusable software objects that can be combined as needed to produce an CRM application suitable for the company. Industry-specific vertical CRM packages: This segment offers packages in major vertical markets, such as the retail industry, the consumer goods industry, financial services, the health care industry, the pharmaceutical industry, the automotive industry, etc. Custom solutions from vertical systems integrators: This segment offers a custom CRM solution. This option can be very expensive, but may be necessary given the company type. * CRM systems can be very beneficial to a company. The first five bullet points are self-evident. However, let me clarify on the last bullet point. Churn rate is a measure of the number of customers who stop purchasing products/services from a company. It is an indicator of growth or decline in a company’s customer base. Customer churn can be reduced as a result of better responding to customer needs through sales, marketing, and service. *