Chapter 9, Problem 3RQ

Explanation of Solution

Customer Relationship Management (CRM):

• Customer relationship management is a methodology that manages an organization’s communication with their customers.
• This method uses client’s history with the company to improve business relationships.
• Modern customer relationship management constructs sustainable enduring customer relationships that generate value for company and customers.

Importance of CRM to an organization:

• Without customers, a business cannot function...

Explanation of Solution

Partner Relationship Management (PRM):

• PRM is a mixture of software, plans, concepts, and procedures that are used by corporations to modernize business process with partners who vend their products and services.
• A successful partner relationship management creates partnership between dealers and vendors that makes a profitable relationship...

Explanation of Solution

Tools and capabilities of CRM software for sales, marketing and customer service:

CRM for sales department:

Sales department uses CRM by the following ways:

• Customer service and support:
  • It contains a wide range of customer services that help the customers in making a cost effective and correct use of the products.
  • It also contains planning, training, upgrading, and maintaining of the products.
• Sales force automation:
  • It is a type of program that automates business tasks like controlling inventory, sales processing, and tracing the interactions of customers and analyzing the performance.
• Contact management CRM:
  • It is a type of CRM system that provides faster access to contact information of customers.
  • It is often used with e-mail integration and activity management.
• Opportunity management CRM:
  • This type of CRM tool aids to manage the sales opportunities and generates accurate forecasts for the business.
  • It organizes key sales information that is important to maximize the leads...

Explanation of Solution

Differences between Operational CRM and Analytical CRM:

Operational CRM	Analytical CRM
This system is used to support front-office (direct interaction with customers) business processes.	This system analyzes customer behavior and provides business intelligence.
It is very efficient and it provides 3600 view of customers, personalized marketing, etc...