CHAPTER 11 : CRM - customer relationship management

1) compare operational and analytical customer relationship management?

Operational CRMThis form of CRM focuses on the transactional processing for the day-to-day front office operations. It also deals directly with the customers.

Analytical CRMThis form of CRM focuses on the back-office operations and strategic analysis. It also includes all systems that do not deal directly with the customers.

Comparison

	Operational CRM	Analytical CRM
Customer Relations	Customers dealt with directly	Customers not dealt with directly
Operations Location	Front office	Back office
Operations	Transactions and general duties	Back-office operations and strategic analysis

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

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 from the various operational CRM systems.