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Analyse this: CRM's next step
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Dec 19, 2002
In today's highly competitive business environment,
companies must learn from interactions with customers and respond to the
knowledge gained from those interactions. In the end customers are a moving
target- the customer you have today may be your competitor's tomorrow!
Enter CRM
CRM is a process by which a company maximises the process of gathering and
understanding customer information from all touch-points i.e. point of sale,
call centres, the web, in an effort to increase loyalty and retain customers
over their lifetimes.
It is not a short-term goal based on isolated transactions resulting in sporadic
client service.
The primary goal is to build long term and profitable relationships with chosen
customers, get closer to them at every point of contact and maximise consumer
returns. It is about lifetime value.
The technology involves a progressive approach to gathering customer data via
multiple, interconnected, delivery channels. This is achieved through aligning
all processes and making them customer-centric.
Then it is all about automation of these integrated business processes with back
and front office operations. This is the domain of Operational CRM.
However, one needs to make
'sense' of this data for implementation of effective CRM, or in other words
transform data into business knowledge. This is the domain of analytical CRM.
Take a situation in the banking environment. A prospective client walks into
your bank. He wants to open an account. In doing so, he furnishes all basic
details to complete necessary formalities. And in due course of time, regular
transactions with this customer begin.
Data is captured at each contact point during each transaction by your bank's
CRM system, i.e. operational CRM. This allows you to know, at a click of a
button, client history and net worth to bank.
However, it does not tell you anything about his behaviour patterns, the kind of
products he will prefer over others, the kind of service he expects, whether he
is a potential high net worth customer etc.
Analytical CRM analyses the data captured by operational CRM, studies consumer
behaviour patterns, to help you know the products to position for cross/up
selling and the level and kind of service to deliver to meet customer demand. It
gives you the power to know your customers that in turn fosters consumer loyalty
over their lifetimes.
Currently, CRM as used in India is operational CRM. The need is to go for
Analytical CRM. This is 360 degree CRM that comprises a closed-loop iterative
process of planning, targeting, acting and learning.
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