Chapter 9 - Customer Relationship Management and Business Intelligence

Q1. What is your understanding of CRM?

Customer Relationship Management involves managing  a customers relationship with an organisation. It establishes customer loyalty, and in turn profitability for the business.CRM allows companies to have interactions with thier customers on a more personal basis through individualisation





Q2. Compare operational and analytical customer relationship management

Operational CRM has links to the daily transactional processes, day-to-day front office operations and dealing directly with customers of the organisation

Analytical CRM has links to the back office operations, strategic analysis and does not deal directly with customers of the organisation. It often uses data mining to find crucial information about consumers and then analysis of this data is made to form predictions and relationship patterns to further develop the business.



Q3. Describe and differentiate the CRM technologies used by marketing departments and sales departments

Marketing Operations CRM technologies:

1- List Generator
2- Camgaign management system
3- Cross-Selling and Up-Selling

Customer Service Operational CRM technologies:

4- Contact/ Call Centre
5- Web-based self-service system
6 - Call scripting system



Q4. How could a sales department use operational CRM technologies?

Operational CRM technologies could be used for three types of management: sales, contacting and opportunity. It can analyse management of customers information with databases and consistency in both sales and service metrics.



Q5. Describe business intelligence and it's value to business



Business Intelligence are applications and technologies used to gather, analyse and use the data found to imporve decision making efforts. It allows for:

• the business to identify sales personelle
• determine valuable customers
• if their campaigns are effective, if not then ask vital questions
• is the business making or loosing money and if so, where abouts

Q6. Explain the problem associated with business intelligence. Describe the solution to this business problem

Organisations are unable to identify their strengths and weaknesses, as well as their competitors due to the lack of data that is accessable and may be poor information.

Companies have a lot of data and need to leverage the information and develop it into useful data.



Q7. What are two possible outcomes a company could get from using data mining?

Data mining is 'the application of statistical techniques to find patterns and relationshops among data and to classify and predict.'
Two possible outcomes include: culster anaylysis as well as association detection





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