Building a Customer-Centric Organization Customer Relationship Management
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Building a Customer-Centric Organization Customer Relationship Management

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Learning Outcomes. 11.1Compare operational and analytical customer relationship management11.2 Identify the primary forces driving the explosive growth of customer relationship management11.3 Define the relationship between decision making and analytical customer relationship management
Building a Customer-Centric Organization Customer Relation...

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1. Chapter 11 Building a Customer-Centric Organization ? Customer Relationship Management CLASSROOM OPENER GREAT BUSINESS DECISIONS ? Harley-Davidson Begins the Harley Owners Group (H.O.G.) to Encourage Customer Involvement One of the biggest assets for Milwaukee-based Harley-Davidson Motorcycle Company is its intensely loyal customers. After struggling against Japanese competition throughout the 1960s and 1970s, the company turned a corner in 1981 when a group of 13 senior Harley-Davidson executives purchased the company. Vaughn Beals, the leader, celebrated with a victory ride from the company?s factory in York, Pennsylvania, to its headquarters in Milwaukee. The new owners decided to begin the Harley Owners Group (H.O.G) to get customers more involved with the product. HOG worked. With HOG, the company was able to key into its greatest asset ? the people who care about the Harley-Davidson company. HOG opened a dialog outside the company with its loyal customer base and inside the company with its workforce. In 1993, a little over 10 years after the start of HOG, the company celebrated its 90th anniversary with more than 100,000 HOG members converging on Milwaukee for a drive-through parade featuring 60,000 Harley-Davidson machines.CLASSROOM OPENER GREAT BUSINESS DECISIONS ? Harley-Davidson Begins the Harley Owners Group (H.O.G.) to Encourage Customer Involvement One of the biggest assets for Milwaukee-based Harley-Davidson Motorcycle Company is its intensely loyal customers. After struggling against Japanese competition throughout the 1960s and 1970s, the company turned a corner in 1981 when a group of 13 senior Harley-Davidson executives purchased the company. Vaughn Beals, the leader, celebrated with a victory ride from the company?s factory in York, Pennsylvania, to its headquarters in Milwaukee. The new owners decided to begin the Harley Owners Group (H.O.G) to get customers more involved with the product. HOG worked. With HOG, the company was able to key into its greatest asset ? the people who care about the Harley-Davidson company. HOG opened a dialog outside the company with its loyal customer base and inside the company with its workforce. In 1993, a little over 10 years after the start of HOG, the company celebrated its 90th anniversary with more than 100,000 HOG members converging on Milwaukee for a drive-through parade featuring 60,000 Harley-Davidson machines.

2. Learning Outcomes 11.1 Compare operational and analytical customer relationship management 11.2 Identify the primary forces driving the explosive growth of customer relationship management 11.3 Define the relationship between decision making and analytical customer relationship management 1 11.1 Compare operational and analytical customer relationship management Operational CRM supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers. Analytical CRM supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers. The primary difference between operational CRM and analytical CRM is the direct interaction between the organization and its customers. 11.2 Identify the primary forces driving the explosive growth of customer relationship management The primary forces driving the explosive growth of CRM include Automation/Productivity/Efficiency, Competitive advantage, Customer demands/requirements, Increase revenues, Decrease costs, Customer support, Inventory control, Accessibility 11.3 Define the relationship between decision making and analytical customer relationship management Analytical CRM solutions are designed to dig deep into a company?s historical customer information and expose patterns of behavior on which a company can capitalize. Analytical CRM is primarily used to enhance and support decision making and works by identifying patterns in customer information collected form the various operational CRM systems. 11.4 Summarize the best practices for implementing a successful customer relationship management system CRM success factors include clearly communicate the CRM strategy , define information needs and flows, build an integrated view of the customer, implement in iterations, scalability for organizational growth11.1 Compare operational and analytical customer relationship management Operational CRM supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers. Analytical CRM supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers. The primary difference between operational CRM and analytical CRM is the direct interaction between the organization and its customers. 11.2 Identify the primary forces driving the explosive growth of customer relationship management The primary forces driving the explosive growth of CRM include Automation/Productivity/Efficiency, Competitive advantage, Customer demands/requirements, Increase revenues, Decrease costs, Customer support, Inventory control, Accessibility 11.3 Define the relationship between decision making and analytical customer relationship management Analytical CRM solutions are designed to dig deep into a company?s historical customer information and expose patterns of behavior on which a company can capitalize. Analytical CRM is primarily used to enhance and support decision making and works by identifying patterns in customer information collected form the various operational CRM systems. 11.4 Summarize the best practices for implementing a successful customer relationship management system CRM success factors include clearly communicate the CRM strategy , define information needs and flows, build an integrated view of the customer, implement in iterations, scalability for organizational growth

3. Manages all of the ways used by firms to deal with existing and potential new customers CRM is both a Business and Technology discipline CRM Uses information system to integrate entire business processes of a firm?s interaction with its customers. Provides end-to-end customer care ( from order receipt through delivery and after sale service and support) Provides a unified view of customer across the company Consolidates customer data from multiple sources (retail stores, phone, e-mail, the Web) and provides analytical tools for answering questions


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