Management Information Systems: Managing the Digital Firm (15th Edition)
Management Information Systems: Managing the Digital Firm (15th Edition)
15th Edition
ISBN: 9780134639710
Author: Kenneth C. Laudon, Jane P. Laudon
Publisher: PEARSON
Question
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Chapter 9, Problem 19MLM
Program Plan Intro

Customer Relationship Management (CRM):

  • CRM 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.

Analytical CRM:

  • This system analyzes customer behavior (analyzes customer information that are generated by operational CRM) and provides business intelligence. It analyzes the data for designing, upselling, and so on.
  • General area includes sales data, financial data, and marketing data.
  • One of the examples is getting feedback from online shopping.

Explanation of Solution

Outputs from analytical CRM systems:

  • One of the outputs of analytical CRM is Customer Lifetime Value (CLTV).
  • This CLTV is based on the relationship between:
    • The revenue produced by a particular customer...

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