What is your understanding of CRM?
CRM is an acronym for Customer Relationship Management. It is an enterprise wide effort to acquire and retain customers. It recognizes the importance of customers to overall business success and therefore attempts to manage these ‘customer relationships’ effectively.
Compare operational and analytical customer relationship management.
Operational- supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers
Analytical- supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers.
Describe and differentiate the CRM technologies used by marketing departments and sales departments.
- List generator – compiles customer information from a variety of sources and segment the information for different marketing campaigns
- Campaign management system – guides users through marketing campaigns
- Cross-selling and up-selling
- Cross-selling – selling additional products or services
- Up-selling – increasing the value of the sale
How could a sales department use operational CRM technologies?
They could do this through using list generators. List generators are able to provide information on precise features of an organisation e.g. a marketing campaign would have list of customers in a geographic area and it can to arrange the lists of each customer in an area. Other strategies include campaign definition, planning and systems and cost sell or up sell.
Describe business intelligence and its value to businesses
Business intelligence refers to applications and technologies for consolidating, analyzing, and providing access to vast amounts of data to help users make better business and strategic decisions. The decision making process is vital to business success. So any tools such as ‘business intelligence’ can help in making better, more informed decisions based on the analyzing components of such an instrument
Explain the problem associated with business intelligence. Describe the solution to this business problem
If there is too much data an organisation may have limited knowledge on where data is or who their competitors may be.Hence may not be unable to make the best strategic implementation due to insufficient tools to back up data and support decision making to their strategic goals. The solution approach that they could take is business intelligence where it helps an organisation make decisions. Functional areas of an organisation can make decisions where they can be able to see more data analysis and reduce the latency of information in making good decisions.
What are two possible outcomes a company could get from using data mining?
Data mining derives its name from searching for valuable business information in a large database, data warehouse, or data mart. The first outcome a company could get from data mining is;
- Predicts trends/ behaviours
- Identifying previously unknown patterns.
Sources:
http://willscullypower.wordpress.com/tag/data-mining/
http://webdocs.cs.ualberta.ca/~zaiane
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