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Why CRM? The Business Case for Customer Relationship Management An Oracle White Paper [4]

论文作者:留学生论文论文属性:短文 essay登出时间:2010-05-28编辑:steelbeezxp点击率:29571

论文字数:4000论文编号:org201005282104362041语种:英语 English地区:马来西亚价格:免费论文

关键词:CRMBusiness CaseCustomer Relationship Management

asing history, and so on) and information derived
from analyzing the customer’s lifecycle process. The customer profile encodes, for
example, observations about which offers appeal most to the customer, which
channel(s) the customer prefers, which product attributes the customer values
most, how much the customer has spent in the past and is likely to spend in the
future, and other issues of strategic relevance.
By analyzing the customer lifecycle process, organizations can pinpoint significant
differences as well as significant similarities among customers. The job of
segmentation is to sort out which differences and similarities are most important
Why CRM? The Business Case for Customer Relationship Management Page 5
across all customers, and then to divide the customer base into groups based on the
relevant distinctions. Effective segmentation is greatly aided by the power of CRM
technology, which gives organizations the ability to capture and analyze large bodies
of timely data and to discern significant correlations among customer attributes. In
addition, CRM technology provides a single view of the customer across all
company touchpoints. Having this holistic view is vital to segmentation efforts.
In the past, because organizations had no easy way to capture, consolidate, and
analyze customer data, their segmentation strategies were limited and often based
on criteria of little strategic value (such as geography). With CRM technology, on
the other hand, organizations can segment customers according to far more
complex and less obvious factors, such as channel preference, profitability, buying
patterns, and other meaningful customer attributes.
Integrated Multichannel Strategy
For a CRM strategy to be successful, a company must offer its customers multiple
ways of interacting with the organization. Companies today can no longer compete
effectively with only one channel.
Not so long ago, most organizations had one primary distribution channel. For
example, consumers could buy General Electric refrigerators any way they
wanted—as long as it was through a GE retailer during store hours. Customers
could order products from L.L. Bean any way they wanted—as long as it was over
the phone to the call center. In this world of fixed, single-channel distribution,
customer relationships were relatively straightforward.
Today, however, market forces and new technologies are dramatically changing
traditional channel structures. Whether through the click of a mouse, a toll-free call,
or a visit to a store down the street, today’s customers can defect to a competitor
with unprecedented ease. In this climate, a single channel simply cannot serve
customers effectively. Complicating the marketplace even further, customers
traverse channels in varied patterns—from the Web to the call center, back to the
Web, and so on—while expecting to be recognized every step of the way in an
ongoing dialogue with the organization. As a result, organizations need a clearly
stated, integrated, multichannel strategy that satisfies the following requirements:
• Aligns the right products to the right channels
• Balances customer needs and channel costs
• Enhances the customer experience
Aligning the Right Products to the Right Channels
Companies can use any number of channels to market to, sell to, and provide
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