Chapter 9, Problem 3RQ

Explanation of Solution

Customer relationship management:

• 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.

Customer relationship management important to an organization:

• Without customers, a business cannot function...

Explanation of Solution

Partner relationship management:

• Partner relationship management is a mixture of software, plans, concepts, 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 is sales department: Sales department uses CRM by the following ways:
• Customer service and support: It contains a wide range of customer services that helps the customers in making a cost effective and correct use of the products. It also contains planning, training, upgrading, maintaining the products.
• Sales force automation: It is a type of program that automates business tasks like controlling inventory, sales processing, 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...