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| Types of CRM in organisations |
Types of CRM in organisations :
CRM should infuse every aspect of a business (in the same way that marketing should infuse every aspect of a business), but it is useful to look at the different ways that CRM is implemented.
Operational CRM refers to the most obvious channels that relate to customers: the front end of a business and its customer service. From a web technology point of view, operational CRM informs the web site a customer sees as well as their entire online user experience. Technology also enables effective customer service from providing numerous contact channels, to presenting technology that records all customer contacts.
Analytical CRM analyses data collected by a business to determine information about customers that can inform sales and marketing decisions. Data mining is a crucial step to effective CRM. Web analytics and conversion optimisation can be seen as part of the CRM process. Data collected about the nature of visits to your website can be used to make informed decisions about where to focus attention based on customer behaviour. Past purchasing behaviour of customers can be analysed to predict future purchasing behaviour. Data can be used to segment customers, and so communications can be tailored.
For example, Amazon.com uses the purchase history of a customer to make recommendations to that customer for future purchases. Thus, a customer who has purchased a number of cookbooks in the past will be sent offers related to cookbooks. Amazon.com also looks at the purchase behaviour of customers who buy the same book, and uses that data to recommend books based on similar customer’s preferences. This process is referred to as collaborative filtering.
Sales force automation uses CRM software to manage sales cycles and to collect customer sales data. The software enables businesses to track leads, schedule transactions and communications with potential and existing customers and to generate detailed reporting on the sales process. There are numerous software providers, some of which are listed later in this chapter.
Collaborative CRM refers to a process, which combines customer data across all facets of a company. For example, queries regularly submitted to the technical support or customer service arm of a business can be used to inform website updates (updating content on the website to address a query that is regularly submitted) and to inform product development. Instead of various departments collecting their own customer data and using this in isolation, data is collaborated so that all channels are making informed decisions based on an entire customer experience.
Analytical CRM analyses data collected by a business to determine information about customers that can inform sales and marketing decisions. Data mining is a crucial step to effective CRM. Web analytics and conversion optimisation can be seen as part of the CRM process. Data collected about the nature of visits to your website can be used to make informed decisions about where to focus attention based on customer behaviour. Past purchasing behaviour of customers can be analysed to predict future purchasing behaviour. Data can be used to segment customers, and so communications can be tailored.
For example, Amazon.com uses the purchase history of a customer to make recommendations to that customer for future purchases. Thus, a customer who has purchased a number of cookbooks in the past will be sent offers related to cookbooks. Amazon.com also looks at the purchase behaviour of customers who buy the same book, and uses that data to recommend books based on similar customer’s preferences. This process is referred to as collaborative filtering.
Sales force automation uses CRM software to manage sales cycles and to collect customer sales data. The software enables businesses to track leads, schedule transactions and communications with potential and existing customers and to generate detailed reporting on the sales process. There are numerous software providers, some of which are listed later in this chapter.
Collaborative CRM refers to a process, which combines customer data across all facets of a company. For example, queries regularly submitted to the technical support or customer service arm of a business can be used to inform website updates (updating content on the website to address a query that is regularly submitted) and to inform product development. Instead of various departments collecting their own customer data and using this in isolation, data is collaborated so that all channels are making informed decisions based on an entire customer experience.
