1. CHAPTER 9 Information Systems, Management, and Decision Making

2. CHAPTER OUTLINE 9.1 Defining Customer Relationship Management 9.2 Operational Customer Relationship Management 9.3 Analytical Customer Relationship Management 9.4 Other Types of Customer Relationship Management Applications

3. LEARNING OBJECTIVES Define customer relationship management and discuss the objectives of CRM. Describe operational CRM and its major components. Describe analytical CRM. Discuss mobile CRM, on-demand CRM, and open-source CRM.

4. The Need for CRM It costs _______ times more to sell to a new customer than to sell to an existing one. A typical dissatisfied customer will tell _____people. By increasing the customer retention rate by __%, profits could increase by __%. Odds of selling to new customers = __%, compared to the odds of selling to existing customers (__%) __% of complaining customers will remain loyal if their problem is solved

5. 9.1 Defining Customer Relationship Management Customer Relationship Management (CRM)

6. Tenets of CRM 1. 2. 3.

7. Lifetime Customer Value The value of a customer…

8. 9.2 Operational CRM Operational CRM Two major components of operational CRM: 1. 2.

9. Customer-Facing Applications Customer Service and Support Sales Force Automation Campaign Management Applications

10. Marketing Cross selling Up selling Bundling

11. 9.3 Analytical CRM Analytical CRM systems

12. 9.4 Other Types of CRM On-Demand CRM Mobile CRM Open-Source CRM