Involves managing all aspects of a customer relationship

Customer relationship management (CRM), accounting homework help
Subject
Business Finance

Question Description
Customer relationship management (CRM) involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability. As organizations begin to migrate from the traditional product-focused organization toward customer-driven organizations, they are recognizing their customers as experts, not just revenue generators. Organizations are quickly realizing that without customers, they simply would not exist and it is critical they do everything they can to ensure their customers’ satisfaction. In an age when product differentiation is difficult, CRM is one of the most valuable assets a company can acquire. The sooner a company embraces CRM the better off it will be and the harder it will be for competitors to steal loyal and devoted customers.

The Broadway Cafe has five traditional lines of business: (1) coffee sales; (2) music sales; (3) food sales; (4) retail sales; and (5) promotional sales such as coffee-of-the-month. Your current IT infrastructure is pieced together with various systems and applications. Currently, you have a difficult time with CRM because your systems are not integrated. You cannot determine vital information such as which customers are ordering coffee and not food or music and not coffee. For example, the three details that the customer Diego Quintos (1) ordered four cappuccinos, (2) three CDs, and (3) two coffeeof-the-month gift coupons, are discrete facts housed in separate systems. You hope that by using CRM technology to integrate your data, the next time Diego purchases a cup of coffee a sales associate could ask him how he is enjoying his CDs, or if his friends liked the coffee-of-the-month gifts.

PROJECT FOCUS:

You are excited about the possibility of taking advantage of customer segmentation and CRM strategies to help increase business. You want to use CRM technologies to improve service and personalization at each customer touch point. Using a data warehousing tool, important customer information can be accessed from all of your systems either daily, weekly, monthly, or once or twice per year. Analyze the sample data in the CRM_AYK.xls file for the following