Database Reference
In-Depth Information
Figure 2.4
Basic schema of the closed-loop CRM system.
1.
Measure
: The effectiveness of the marketing effort in terms of the resulting customer
profitability.
2.
Predict
: Analyze the available data for modeling the consumer behavior and predict con-
sumer behavior close to the actual observations. These models are then used to focus and
refine the design and configuration of the future marketing campaigns.
3.
Act
: The CRM systems then assist in executing the modified marketing campaigns along
with the corresponding changes in measurements for ascertaining the success of the new
campaign.
Figure 2.4
presents the basic schema of the closed-loop CRM system.
2.3.2 Why Use CRM?
The implementation of CRM engenders the following business and technical advantages:
◾
Reconciles and optimizes the conflicting goals of different divisions or departments for con-
sistent and coordinated customer interactions and fulfilling experience at all customer touch
points.
◾
Standardizes business processes across all constituent companies and sites, thus increasing
their efficiencies.
◾
Provides the ability to know and implement global best practices and provides the best
means for benchmarking the organization's customer-centric competitiveness.
◾
Alters the function-oriented organization toward a more team-based, cross functional,
process-oriented organization, thus leading to a more flexible, flatter, tightly integrated, and
customer-responsive organization.
◾
Provides a responsive medium for undertaking all variants of process improvement pro-
grams and methodologies, including process innovation, process improvement, and interac-
tion channels.
