What is your understanding of CRM?
Customer relationship management (CRM) are systems that enable and manage the relationship between the business and the customer.They also allow for the business to individualise the services with their customers, in order to provide the best customer service.CRM's are used by sales and marketing.
Compare operational and analytical customer relationship management.
Figure 1: This is a table I created outlining the difference between Operational and Analytical CRM
Describe and differentiate the CRM technologies used by marketing departments and sales departments.
The marketing department uses a list generator, a campaign management system and cross-selling and up-selling technologies in order to sell many products to just one customer.
-List generators gather customer information from a range of sources and then divide the information for different marketing campaigns.
-Campaign management systems guide users through marketing campaigns.
-Cross-selling involves selling additional products or services.
-Up-selling involves increasing the value of the sale.
The sales department uses the three primary operational CRM technologies of sales management, contact management and opportunity management to increase customer satisfaction.
-Sales management automates each phase of the sales process, which helps individual sale representatives to coordinate and organise all of their accounts.
-Contact management allows for customer contact information to be maintained, as well as identifying prospective customers for future sales.
-Opportunity management targets sale opportunities by finding new customers for companies for future sales.
-List generators gather customer information from a range of sources and then divide the information for different marketing campaigns.
-Campaign management systems guide users through marketing campaigns.
-Cross-selling involves selling additional products or services.
-Up-selling involves increasing the value of the sale.
The sales department uses the three primary operational CRM technologies of sales management, contact management and opportunity management to increase customer satisfaction.
-Sales management automates each phase of the sales process, which helps individual sale representatives to coordinate and organise all of their accounts.
-Contact management allows for customer contact information to be maintained, as well as identifying prospective customers for future sales.
-Opportunity management targets sale opportunities by finding new customers for companies for future sales.
How could a sales department use operational CRM technologies?
A sales department could use operation CRM technologies to;
-Identify prospective customers
-Identify types of customers
-Create individualises marketing campaigns to target a particular group of prospective customers
-Understand and gain knowledge about customers buying behaviours
-Communicate with customers on an individual basis, allowing for the business to know exactly what each customer wants and needs
-Identify prospective customers
-Identify types of customers
-Create individualises marketing campaigns to target a particular group of prospective customers
-Understand and gain knowledge about customers buying behaviours
-Communicate with customers on an individual basis, allowing for the business to know exactly what each customer wants and needs
Describe business intelligence and its value to businesses.
Business Intelligence refers to applications and technologies that are used to gather, provide access to and analyse data and information support decision-making efforts, in order to find strategic and competitive advantages.
Nowadays businesses are discovering that they must meet and identify the constantly changing wants and needs of different customer groups, in order for them to still be a competitive positions in today's consumer-centric market. Business intelligence allows for companies to;
-Determine who are the best and worst customers thereby gaining insight into where it needs to concentrate more for its future sales
-Identify exceptional sales people
-Determine whether or not campaigns have been successful
-Determine in which activity they are making or loosing money
Nowadays businesses are discovering that they must meet and identify the constantly changing wants and needs of different customer groups, in order for them to still be a competitive positions in today's consumer-centric market. Business intelligence allows for companies to;
-Determine who are the best and worst customers thereby gaining insight into where it needs to concentrate more for its future sales
-Identify exceptional sales people
-Determine whether or not campaigns have been successful
-Determine in which activity they are making or loosing money
Explain the problem associated with business intelligence. Describe the solution to this business problem.
The problem associated with business intelligence is to do with the notion of "Data Rich, Information Poor".
Every single year the amount of data being generated is doubled and many think that it will begin to double every month. From here they are able to gain information, but first all the data must be analysed, however some of this data may be unable to be used. Hence the business having a lot of data ("Data Rich") and there being not as much information ("Information Poor").
The solution to this notion of "Data Rich, Information Poor", is for business executives to properly equip their employees with business intelligence tools and systems. These will enable for the not only the business to run effectively and efficiently, but will also allow for employees to make better, and more informed decisions.
Every single year the amount of data being generated is doubled and many think that it will begin to double every month. From here they are able to gain information, but first all the data must be analysed, however some of this data may be unable to be used. Hence the business having a lot of data ("Data Rich") and there being not as much information ("Information Poor").
The solution to this notion of "Data Rich, Information Poor", is for business executives to properly equip their employees with business intelligence tools and systems. These will enable for the not only the business to run effectively and efficiently, but will also allow for employees to make better, and more informed decisions.
What are two possible outcomes a company could get from using data mining?
Statistical Analysis-"performs such functions as information correlations, distributions, calculations and variance analysis. Data mining tools give workers a wide range of powerful statistical capabilities so they can quickly build a variety of statistical models, examine the models' assumptions and validity, and compare and contrast the various models to determine which one is best suited for a particular issues within a business."
References:
Baltzan, Phillips, Lynch, Blakey, Business Driven Information Systems, 1st Australian/New Zealand Edition, Mc Graw Hill, 2010.
Data mining is the process of analysing data to extract information not offered by the raw data alone.
Two possible outcomes of data mining are cluster analysis and statistical analysis,
Cluster Analysis-"is a technique used to divide a set of information into mutually exclusive groups, such that the members of each group are as close together as possible to one another and the different groups are as far apart as possible. ... It is also constantly used to divide customer information for customer relationship management systems to help organisations identify customers with similar behavioural traits. ... Cluster analysis has the ability to uncover naturally occurring patterns in information"
Two possible outcomes of data mining are cluster analysis and statistical analysis,
Cluster Analysis-"is a technique used to divide a set of information into mutually exclusive groups, such that the members of each group are as close together as possible to one another and the different groups are as far apart as possible. ... It is also constantly used to divide customer information for customer relationship management systems to help organisations identify customers with similar behavioural traits. ... Cluster analysis has the ability to uncover naturally occurring patterns in information"
Figure 2: This is an example of cluster analysis
Statistical Analysis-"performs such functions as information correlations, distributions, calculations and variance analysis. Data mining tools give workers a wide range of powerful statistical capabilities so they can quickly build a variety of statistical models, examine the models' assumptions and validity, and compare and contrast the various models to determine which one is best suited for a particular issues within a business."
Baltzan, Phillips, Lynch, Blakey, Business Driven Information Systems, 1st Australian/New Zealand Edition, Mc Graw Hill, 2010.
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