Business environments:
A simple introduction to a new approach
Customer Relationship
Management
(CRM)
Business Environments
“How was it in the past”

One to one sales environment

Not a lot of competition

With high customer retention

Less customer knowledge

Very few options
Business Environments
“How is it nowadays”

Mass production

Strong competition

Varity of options

Internet, e-commerce, e-business … etc

Customers are more demanding

The margins are shrinking

Huge database
Business Environments
“A new approach is required!!!”

Helps in finding out about your customers'
purchasing habits, opinions and preferences

Assists in profiling individuals and groups to
market more effectively and increase sales

Aids in changing the way you operate to improve
customer service and marketing

Builds some kind of a relationship
The new approach
“How it can be done”
Determine current
level of Customer
Relationships within
the enterprise
Leverage and
disseminate customer
information throughout
enterprise
Establish interaction
with current customer
base
Analyze data for
profitable/unprofitable
segments
Acquire and capture
customer data based
on Interactions
Use technology to
store and integrate
customer data
In conclusion
“Customer Relationship Management (CRM)”

CRM is a strategy that aims to understand,
anticipate, and manage the needs of an
organization's current and potential customers

Increase Customer Retention / Loyalty – 94%

Respond to Competitive Pressures – 77%

Competitive Advantages from Superior Customer
Service – 73%
References:

Alexander, David & Turner, Charles (2001), The C.R.M.
Pocketbook, U.K.: Management Pocketbooks Ltd.

Harris, Lisa and Cohen, Geraldine, Marketing in the Internet age:
what can we learn from the past?, Management Decision Journal,
Emerald Group Publishing Limited, 2003.

Survey of 96 Global Firms by The conference Board, Inc., New
York, Aug. 2001