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
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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 CRMAnalytical 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...

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