Question Transcribed Image Text:Almost all large companies have a formal CRM program. Here are a few examples of how companies have implemented CRM: Boots the Chemists, a U.K. retailer of over 1,400 health and beauty stores, uses e-CRM analytics to learn about customers in its e-loyalty programs. The retailer uses data mining to acquire insights into customer behavior. Customer service agents can analyze, predict, and maximize the value of each customer relationship. • Continental Airlines monitors telephone calls to its data center, using intelligent software from Witness Systems (witness.com) to analyze recorded conversations. The analysis tells Continental Airlines what customers really want. It also helps the company craft marketing plans and business strategy. Results serve cus- tomers better and resolve problems immediately, saving the company $1 million annually. • Micrel Inc., a leading manufacturer of integrated circuit solu- tions for enterprise, consumer, industrial, mobile, telecommu- nications, automotive, and computer markets, has become known for being “fast on its feet" in responding to customer needs. To improve response time and relevancy of information delivered to customers online, the company uses a sophisti- cated self-service search and navigation engine that directs cus- tomers to the right information at the right time to help them reach buying decisions. As a result, Web site traffic grew by 300 percent, retention rate for new site visitors increased by 25 per- cent, the company saved $40,000 a year, and customer satis- faction increased significantly. • The Kassel region in Germany uses a CRM-based social net- working platform to attract businesses, tourists, and potential residents. The site won the Most Innovative CRM Deployment • Harrah's Entertainment Inc. treats its customers differently: The more a customer spends in a casino, the more rewards the cus- tomer gets. The company assigns a value to each customer as determined by the results of data mining. • FedEx's CRM system enables the company to provide superb service to millions of customers using 56 call centers. Each of its 4,000 call center employees has instant access to a cus- tomer's profile. The profile tells the employee how valuable the customer is and the details of the current transaction. The more an agent knows about the customer, the better the serv- ice provided. Customers use one phone number regardless of where the company is or the destination of the package. The CRM reduced calls for help, increased customer satisfac- tion, and enabled better advertising and marketing strategy. Discussion Questions: What are the common elements of CRM in these examples? CRM systems provide managerial benefits. What are they? Why is data mining becoming so important in CRM?

Question

Question Transcribed Image Text:Almost all large companies have a formal CRM program. Here are a few examples of how companies have implemented CRM: Boots the Chemists, a U.K. retailer of over 1,400 health and beauty stores, uses e-CRM analytics to learn about customers in its e-loyalty programs. The retailer uses data mining to acquire insights into customer behavior. Customer service agents can analyze, predict, and maximize the value of each customer relationship. • Continental Airlines monitors telephone calls to its data center, using intelligent software from Witness Systems (witness.com) to analyze recorded conversations. The analysis tells Continental Airlines what customers really want. It also helps the company craft marketing plans and business strategy. Results serve cus- tomers better and resolve problems immediately, saving the company $1 million annually. • Micrel Inc., a leading manufacturer of integrated circuit solu- tions for enterprise, consumer, industrial, mobile, telecommu- nications, automotive, and computer markets, has become known for being “fast on its feet&#34; in responding to customer needs. To improve response time and relevancy of information delivered to customers online, the company uses a sophisti- cated self-service search and navigation engine that directs cus- tomers to the right information at the right time to help them reach buying decisions. As a result, Web site traffic grew by 300 percent, retention rate for new site visitors increased by 25 per- cent, the company saved $40,000 a year, and customer satis- faction increased significantly. • The Kassel region in Germany uses a CRM-based social net- working platform to attract businesses, tourists, and potential residents. The site won the Most Innovative CRM Deployment • Harrah's Entertainment Inc. treats its customers differently: The more a customer spends in a casino, the more rewards the cus- tomer gets. The company assigns a value to each customer as determined by the results of data mining. • FedEx's CRM system enables the company to provide superb service to millions of customers using 56 call centers. Each of its 4,000 call center employees has instant access to a cus- tomer's profile. The profile tells the employee how valuable the customer is and the details of the current transaction. The more an agent knows about the customer, the better the serv- ice provided. Customers use one phone number regardless of where the company is or the destination of the package. The CRM reduced calls for help, increased customer satisfac- tion, and enabled better advertising and marketing strategy. Discussion Questions: What are the common elements of CRM in these examples? CRM systems provide managerial benefits. What are they? Why is data mining becoming so important in CRM?

Accepted Answer

CRM means customer relationship management. CRM is very important in marketing and sales. It is a…