Definition Of Customer Relationship Management
Does anyone know a good definition for Customer Relationship Management?
My definition of Customer Relationship Management is that it's equivalent
to customer retention.
CRM uses Lifetime Customer Value Analysis to (LCVA)determine which
customers are profitable to retain and which are not so it can be
determined which customers to continue developing a relationship with
and which customers are costing you $ and discontinue servinig.
CRM is a bit difficult, however, if your customers only purchase from
you once or only once in a long timeframe. This is especially true if
your product line has no aftermarket extensions or first purchase line
extensions. LCVA needs purchase patterns and revenue metrics to be
repeatable and predictable.