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Concept of RM
Communicates the idea that a major goal of a business enterprise is to engage in interaction with customers over the long term.
CRM
Process of compiling information:
An organization tries to compile all the information about their customers so that they can manage the relationships with their customers properly.
Why CRM?
The impact of a 5% increase in retention rates
It is 6-7 times more expensive to gain a new customer than retain an existing customer (Harvard Business Review) Customers become more precarious A 5% increase in customer retention can increase profits 60-100% proved customer retention Data as on 2007
Industry Increase in profits Advertising Agency 95% life-insurance company 90% branck bank deposits 85% publishing 85% auto service 81% auto/home insurance 80% credit card 75% industrial brokerage 50% industrial distribution 45% industrial laundry 45% office-building management 40%
Source: The Loyalty Effect (Harvard Business School Press) By Frederick Reichhek
CRM Failure
75% of CRM projects that do not deliver measurable ROI will have failed because of poor business executive decision-making of the companies got worse performance tasks, of companies which implement CRM system didnt get improvement of tasks,.
Source: Gartner Group, Insight Technology Group report
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Source :http://www.krgweb.com
CRM Market is getting bigger but, companies should pay too much cost and time to implement CRM. Also, the CRM system does not guarantee higher performance
Sin One : Failing to Plan Sin Two : Failing To Establish Outcomes Sin Three : Excluding the Human Factor Sin Four : Automating Flawed Processes Sin Five : Ignoring Constraints Sin Six : Disregarding Politics Sin Seven : Choosing the Wrong Vendor
Source: interview of Gartner Researchs Beth Eisenfeld with CRMDaily