Why CRM? The Business Case for
Customer Relationship Management An Oracle White Paper
July 2006
Why CRM? The Business Case for Customer Relationship Management
Executive Overview.......................................................................................... 3
A Brief
history of CRM Technology............................................................. 4
The Core Components of CRM ..................................................................... 5
Effective Customer Segmentation ............................................................. 5
Integrated Multichannel
strategy................................................................ 6
Aligning the Right Products to the Right Channels............................ 6
Balancing Customer Needs and Channel Costs .................................. 7
Enhancing the Customer Experience ................................................... 8
Well-Defined Business Processes............................................................... 9
Lead Management .................................................................................... 9
Call Routing............................................................................................... 9
Service-Ticket Tracking......................................................................... 10
The Right Skill Sets and Mindsets ............................................................ 10
The Right Technology ............................................................................... 10
Multichannel Support ............................................................................ 10
Industry-Specific Functionality ............................................................ 11
Scalability and Global Support ............................................................. 11
Flexible Deployment Options.............................................................. 12
Support for All Devices......................................................................... 12
The Business Benefits of CRM ..................................................................... 12
Cost Reduction Benefits ............................................................................ 13
Decreased Customer Acquisition Costs.............................................. 13
Decreased Cost of Sales ........................................................................ 13
Decreased Cost to Retain and Serve Customers ............................... 14
Revenue Enhancement Benefits............................................................... 15
Increased Close Rates ............................................................................ 15
Increased Revenue per Sale .................................................................. 15
Improved Customer Retention ............................................................ 16
Additional Benefits of CRM ..................................................................... 17
Superior Market Intelligence................................................................. 18
Product Development Tied to Customer Needs............................... 18
Improved Forecasting and
Financial Management........................... 18
Greater Brand Equity ............................................................................ 19
Conclusion........................................................................................................ 20<
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