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Pitfalls to avoid:

Many CRM programs fail for two reasons:

1. Lack of supportive business processes: Because business processes
and organizational goals are not part of a strategic CRM plan tied to
organizational goals and obectives.
Customer Relationship Management Model
Customer Retention Programs
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Objective of the study of CRM
CRM1 in its broadest sense1 means managing all interactions and
business wit2 customers. #2is includes1 but is not limited to1 improving
customer service. customer service by facilitating communication in several
-rovide product information1 product use information1 and tec2nical
assistance on web sites t2at are accessible 34 2ours a day1 5 days a
(dentify 2ow eac2 individual customer defines 6uality1 and t2en
design a service strategy for eac2 customer based on t2ese individual
re6uirements and e7pectations.
Research Methodology for CRM
Meeting and satisfying eac2 customer8s need uni6uely and
individually. (n t2e mass markets individualized information on customers
is now possible at low costs due to t2e rapid development in t2e
information tec2nology and due to availability of scalable data ware2ouses
and data mining products. By using online information and databases on
individual customer interactions1 marketers aim to fulfill t2e uni6ue needs
of eac2 mass9market customer. (nformation on individual customers is
utilized to develop fre6uency marketing1 interactive marketing1 and after
marketing programs in order to develop relations2ip wit2 2ig29yielding
customers. (n t2e conte7t of business9to9business markets1 individual
marketing 2as been in place
of 6uite sometime. .nown as .ey "ccount Management -rogram1 2ere
marketers appoint customer teams to 2usband t2e company resources
according to individual customer needs.
Continuity Marketing Programs
#ake t2e s2ape of members2ip and loyalty card programs w2ere
customers are often rewarded for t2eir member and loyalty relations2ips
wit2 t2e marketers. #2e basic premise of continuity marketing programs is
to retain customers and increase loyalty t2roug2 long9term special services
t2at 2as a potential to increase mutual value t2roug2 learning about eac2
Partnering Programs
#2e t2ird type of CRM programs is partnering relations2ips between
customer and marketers to serve end user needs. (n t2e mass markets1 two
types of partnering programs are most common: Co9branding and affinity
partnering. Missing process of CRM #raditionally customer relations2ip
management :CRM; revolves around t2e t2ree functions of selling1
marketing and support. /arious process models 2ave been built around
2ow t2ese functions are integrated and operated in a customer oriented
enterprise. #2ere is 2owever a fourt2 critical function t2at is lacking in
most CRM models.
Architecture of CRM
#2ere are t2ree parts of application arc2itecture of CRM:
1. *perational 9 automation to t2e basic business processes :marketing1
sales1 service;
3. "nalytical 9 support to analyze customer be2avior1 implements
business intelligence aliketec2nology
<. Collaborative 9 ensures t2e contact wit2 customers :p2one1 email1 fa71
web1 %M%1 post1 in person;
1 Operational CRM
*perational CRM means supporting t2e =front office= business
processes1 w2ic2 include customer contact :sales1 marketing and service;.
#asks resulting from t2ese processes are forwarded to resources
responsible for t2em1 as well as t2e information necessary for carrying out
t2e tasks and interfaces to back9end applications are being provided and
activities wit2 customers.