CRM Information

Focus On Profitable Customer.

Customer database and their historical purchase at your store are valuable information and you can mine and analysis their habit so you can differentiate them base on their loyalty. Ideally Company wants to build good Customer Relationship to their entire customer. But in this real live company resource is limited and customers we have to retain or maintain are huge. Facing this situation we have to select which and how much customer to maintain.

In common practice the company will use Pareto principal approach to select 20% customer, which contribute 80% sales. Using this approached probably will give good response when we made promotion offer to top 20% customer. By using this way we are not maximizing the power of our customer historical purchase data. Beside customer spending (monetary) we have others value information such as recently customer transaction and their frequency shopping at our store. These variables will help us to predict

The concepts of customer relationship management have been in the air ever since one caveman had a choice of buying an arrowhead from either Og or Thag, but CRM as a term gained currency in the mid-1990s. Market analysts squabble over the exact figure, but all agree that in the next few years companies will pour billions of dollars into CRM solutions?software and services designed to help businesses more effectively manage customer relationships through any direct or indirect channel a customer opts to use.

So why, with the market for CRM technology exploding, is the most common question asked at CRMGuru.com "What is CRM?" Probably because if you ask three CRM experts, you'll get five different answers.

We put the question to a panel of CRM experts?the "gurus" working with CRMGuru.com?to weed out idiosyncratic spin and whittle CRM down to its essence:

Customer relationship management (CRM) is a business strategy to acquire and manage the most valuable customer relationships. CRM requires a customer-centric business philosophy and culture to support effective marketing, sales and service processes. CRM applications can enable effective customer relationship management, provided that an enterprise has the right leadership, strategy and culture.

CRM is about customer value creation. Company objective is not to generate maximum revenue from customer transaction, but rather to build lasting relationship with customer. Building customer relationship is creating the process, which could help customer to create value for them selves. The advantage of CRM is the company responsibilities are not only creating the product base on price, but also to help customers to create value for themselves.