Customer relationship management

Technical

Briefing

DEVELOPING AND PROMOTING STRATEGY

JUNE 2001

Customer Relationship Management ompetition is forcing many companies to restructure so that customers rather than business processes become the focus of their organisation. Whether customers use telephones, fax, e-mail or websites, each contact point allows the company to capture information that is fed into the system. The goal is to offer a personal approach, to support one-to-one marketing.

C IN THIS BRIEFING…

ustomer Relationship Management (CRM) has emerged from the networking technology revolution of the 1990s. The CRM movement is based on the business truism that it is more expensive to acquire new customers than it is to retain old ones. With this in mind, the world’s leading companies are pioneering new strategies to improve customer intimacy and establish lucrative, long-term relationships. Today’s cutting-edge CRM tactics focus on strengthening a company’s relationship with customers through better information and improved service.

C Part 1 – General FAQs on CRM

Part 2 – Practical guidance on using CRM

Part 3 – Useful websites and references for further reading

he business world has moved away from the old thinking that customers should accept whatever product quality and service level a vendor supplies. Powerful customer relationship management (CRM) tools allow vendors to make the most effective use of customer data.

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et most organisations do not yet know enough about their customers’ needs and aspirations. This lack of knowledge stems partly from an absence of relevant data and also from the absence of powerful modelling and analytical systems. CRM systems are somewhat regarded as experimental by many organisations, even though their utility is widely accepted.

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he introduction of customer relationship management (CRM) has triggered much discussion and opinion. Most of this focuses on the value to the business of an improved database of customer information and on better customer service. Implementation can be difficult, and costly. The idea behind CRM is by engaging in ‘smarter’ relationships, a company can learn customers’ preferences and develop trust. Every contact point with the customer can be seen as a chance to record information and learn

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For further information please contact: Technical Services: Tel: +44 (0)20 7917 9237 Fax: +44 (0)20 7580 8956 techservices@cimaglobal.com

The Chartered Institute of Management Accountants 63 Portland Place London W1B 1AB Tel: +44 (0)20 7637 2311 Fax: +44 (0)20 7631 5309 www.cimaglobal.com