1. What is your understanding of CRM?
I believe customer relationship management is very significant in business. Relationships between businesses and their customers must be built and maintained in order to experience customer loyalty and repeat business. Loyalty cards and special discounts for customers are a couple of schemes which can improve loyalty and maintain a good consumer and business relationship.
2. Compare operational and analytical customer relationship management.
Operational customer relationship management supports traditional transactional processing for day-to-day front office operations or systems that deal directly with the customers. Analytical customer relationship management supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers. Operational customer relationship management focuses on organising and simplifying the management of customer information. It uses a database to provide consistent information about a company’s interaction with a customer.
3. Describe and differentiate the CRM technologies used by marketing departments and sales departments
Marketing departments often use CRM technologies to understand and utilise the characteristics of their customers. List generators, campaign management and cross selling and up selling are just a few examples of operational CRM technologies used by marketing departments. In sales departments, CRM technologies are used for sales management, contact management as well as opportunity management.
4. How could a sales department use operational CRM technologies?
It is important for a sales department to keep track of customer information. Therefore there are three ways a sales department may utilise customer relationship technologies. These include:
1. Sales management CRM systems
2. Contact management CRM systems
3. Opportunity management CRM systems
5. Describe business intelligence and its value to businesses
Business intelligence is the applications and technologies used to gather, provide access to, and analyse data and information to support decision-making efforts. Business intelligence includes simple MS Excel Pivot tables to highly sophisticated software that fetches data from the different front-and back-office systems. Many Businesses are finding that they must identify and meet the fast-changing needs and wants of different customer segments in order to stay competitive in today’s consumer-centric market. BI can tell companies things like;
— 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 losing money.
6. Explain the problem associated with business intelligence. Describe the solution to this business problem
Companies can have a lot of data, however they are not able to benefit from levering this information and turning it into useful data for analytical and strategic decision making. The issue most organisations are facing today is that it is next to impossible to understand their own strengths and weaknesses, let alone their enemies, because the enormous amount of organisational data is inaccessible to all but the IT department. The problem: data rich, information poor.
7. What are two possible outcomes a company could get from using data mining?
Data mining is the process of analysing data to exact data not offered by the raw data alone. Data mining is the primary tool used to uncover business intelligence in vast amounts of data. Using data mining, product line specialists and marketing specialists ‘drill’ into trends of each retail store chain. Their goal is to find buying trends that help them determine which advertising strategies to implement, resulting in an increase in sales. Data mining can provide businesses with important information, such as, new correlations, patterns and trends.
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