Explain the flow model for a CRM system -- what is it, how does it work, what are the advantages/challenges?Identify three examples of specific businesses that might be used as a model of CRM for other companies. Explain what they are doing and why you think they could serve as a model example. Illustrate from personal experience and provide examples from customer feedback, or reference articles about the company.
Customer Relationship Management (CRM) is an organizational-wide strategy that is used to optimize profitability, revenue, and customer satisfaction by targeting highly defined, specific customer groups. As a result, the organization manages the customer relationship across all points of contact, and the customer is the center of importance. The flow model for a CRM system begins with identifying customer relationships, and by collecting information from customer comments and feedback on service or product performance. Collected information includes observations, customer comments and feedback, customer actions, and qualitative facts. It is important to include all interactions with customers, for example, Internet, point of sale, customer service, and product registration. This helps the organization understand interactions with the current customer base. The information is captured, and stored centrally by IT, and then shared in order to improve the relationship between customers and the organization. It is used to identify best customers and improve interactions. From this information, customers can be broken into smaller, more homogeneous groups and a profile can be created to better understand customer's traits, and predict value.
The advantages of CRM include the ability to design targeted marketing communications, to cross -sell other products and services, to increase service for loyal customers, and to improve/enhance customer service overall. CRM gives a better picture of the organization's customers. The challenges of CRM include the ...
This detailed solution explains the flow model for a CRM system, how it works, and the advantages and challenges. It also identifies examples of specific businesses that could be used as a model of CRM for other companies, and why they serve as examples. Includes APA formatted references.