Overview Of Customer Relationship Management And Technology
In looking at Customer Relationship Management, we have three broad areas that CRM can be divided into. These are Operational CRM Analytical CRM and Collaborative CRM. We are going to discuss this briefly now but our subsequent discussions will fall into any of these three headings.
The three areas that the CRM can be divided into CRM and Collaborative customer relationship management.
into are: Operational CRM, Analytical
i. Operational CRM
The goal of operational GUM is to achieve the automation of horizontally integrated business processes including customer touch points, the point of sales, and the legacy systems integration.
We have said earlier that those front offices are the ones that relate directly with customers while the back office is those that do not relate directly with customers. A good example of such s the Audit Department or Personnel Managers who don’t have any business with customers.
Operational CRM has to do with CRM strategies and packages that are formulated in order to meet day to day operations of the business. This includes some of the policies and programs that are formulated in order to meet the day -to -day needs of customers.
ii. Analytical CRM
Analytical Customer relationship management involves capturing, storing, extracting, processes, analysis and interpretation of customer data to the corporate user At the onset, the organisation will make a deliberate effort to get as much information as possible about their customers. After this, the organisation must analyse the information and process it.
They must be able to remove duplicated information or that information that are not a necessity. Organisations should know that before any CRM initiative can be successful, it must have adequate information about their purchase decisions. This will help in making well-informed decisions. This will help them to meet the customers at the right place with the right products.
A good example of analytical CRM is that of a bank that has customers of different age groups. They have young and old who have accounts with them.
They must be able to come with different products and packages to meet different customers’ needs. Young adults need a banking service that can meet their needs while retired from service since they then would become fragile and might want to deal with the bank from the convenience of their homes.
iii. Collaborative CRM
Collaborative CRM is the application of collaborative services to facilitate interactions between the customer and the organisation. Under this, applications are deployed in order to make sure that all stakeholders work together in order to increase customers’ experience.
This might include Partner Relationship Management communities, Customer Interactive Centres, electronic CRM among others. The aim of its introduction is to enrich the information and services available to customers, so as to increase customers loyalty.
At the end of this lesson, we have been able to understand that operational CRM has much to do with applications and policies that relate to day to day activities in an organisation while Analytical CRM has much to do with those applications that are deployed to work on customers’ information. Collaborative CRM has to do with the involvement of stakeholders in order to increase customers’ experience and exit stake.
1. Using a well-known organisation in Nigeria as a case study, explain the three branches of CRM.
2. To you, which branches of CRM are the most important?
3. Why do you think Technology is very important to CRM?
4. Explain operational and Analytical CRM with examples.
1. How do you think that the adoption of analytical CRM technologies will help Korak Health Source, health Insurance organisation located in Maryland USA to serve their customers better?
2. Mr Anderson, an initiator of CRM of Birmingham Investment had just been invited by his state Manager to come and explain the reasons why the organisation needs to have a centralized customer database. If you are in his shoes, what will be your arguments?
Now your take on this argument.
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Adeniyi Salau is a Digital Marketer, Project Manager and SEO Expert of repute with about a decade of Blogging and online marketing experience. He is always ready to share his experience with others.