IT and Customer Relation Management

ACCA P5 Advance Performance Management

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To support its co-op members, WinField uses Oracle Endeca Information Discovery technology in its Emerald Extras Equinox program, which helps co-op members better understand behaviors and patterns in the farming market. “We can glean information that tells us, for instance, who has bought 1,000 acres of seed but maybe has bought only 500 acres’ worth of protection products such as herbicides, granular micronutrients, adjuvants, and seed treatments,” explains Macrie

The above article illustrate example of CSCM and CRM of an organisation where speed and efficiency in online ordering experience are essential.

IT and Customer Relation Management (CRM): Government and/or organisations and/or general public anyone can be customer for an organisation. Operating in demand pull environment today’s organisations are customer centric (offering customized services and products as required by customers).  However addressing the needs of customers (individual customer or group of customer) is not one off action of an organisation. Therefore, CRM focus on securing existing customers and acquiring new customer to offer organisations product and services in present and future. This is known as customer lifecycle (see below). CRM uses IT introducing itself and its products to customers, maintaining relation with them and convincing the quality of goods and services offered.

Customer life cycle:

Ø  Customer selection – targets customer category from range of customer

Ø  Customer acquisition – forming relationship with customer

Ø  Customer retention – securing existing customer

Ø  Customer expansion – addressing new needs of customers

Evaluating online customer behaviour uses various IT (automated/real-time) programs in evaluating customer behaviour. The mnemonic for types of customer behaviour is FRAC.

Ø  Frequency: no of goods purchased or service received per week, latency – average time between two purchases

Ø  Recency: Time since last purchase

Ø  Amount (Money): Monetary value of last purchase or purchase in a period

Ø  Category: Types of goods or services purchased

From the Article linked below:

Which division should run the CRM project?

The biggest returns come from aligning business, CRM and IT strategies across all departments and not just leaving it for one group to run. In fact, it’s best for the business departments who actually use the software to take ownership of the project, with IT and the CIO playing an important advisory role.

CRM Definition and Solution