Customer relationship management | Wikipedia
I have been writing about CRM. Turns out Wikipedia has a good discussion on this topic.
There are three fundamental components in CRM:
- Operational – automation of basic business processes (marketing, sales, service)
- Analytical – analysis of customer data and behavior using business intelligence
- Collaborative – communicating with clients
These three components are defined here as follows:
- Sales force automation (SFA)
- SFA automates some of a company’s critical sales and sales force management tasks, such as forecasting, sales administration, tracking customer preferences and demographics, performance management, lead management, account management, contact management and quote management.
- Customer service and support (CSS)
- CSS automates certain service requests, complaints, product returns and enquiries.
- Enterprise marketing automation (EMA)
- EMA provides information about the business environment, including information on competitors, industry trends, and macroenvironmental variables. EMA applications are used to improve marketing efficiency.
To enhance a company’s relationship with its clients. The results of an analysis can be used to design targeted marketing campaigns, for example:
- Acquisition: Cross-selling, up-selling
- Retention: Retaining existing customers (antonym: customer attrition)
- Information: Providing timely and regular information to customers
Other examples of the applications of analyses include:
- Contact optimization
- Evaluating and improving customer satisfaction
- Optimizing sales coverage
- Fraud detection
- Financial forecasts
- Price optimization
- Product development
- Program evaluation
- Risk assessment and management
- Strategic Marketing
- Operational marketing
Data collection and analysis is viewed as a continuing and iterative process. Ideally, business decisions are refined over time, based on feedback from earlier analyses and decisions. Most analytical CRM projects use a data warehouse to manage data.
Focuses on the interaction with customers (personal interaction, letter, fax, phone, Internet, e-mail etc.)
- Providing efficient communication with customers across a variety of communications channels
- Providing online services to reduce customer service costs
- Providing access to customer information while interacting with customers
This is a highly theoretical view of CRM. I like it but I don’t recognise this in my travels. My observations to date:
CRM implementations include the following, but not necessarily automated or integrated:
- Operational CRM: customer service & support
- Analytical CRM: elements here like Fraud, and operational marketing, but non-integrated with 1.
- Collaborative CRM: most elements, but again, non integrated with 1. and 2.
Relevance to Bankwatch:
The vision for CRM is entirely relevant for Banks, but is way ahead of either capacity to afford, or certainly capacity to implement due to disparate systems.