The Financial Side of CRM
- Topics:
- Marketing Strategy,
- Strategy Formulation
- Tags:
- Advertising & Promotion,
- CRM,
- Customer Relationship Management (CRM),
- Enterprise Software,
- Financial,
- Marketing,
- Software
- Source:
- Information Today
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Overview: It is true that Budgeting-forecasting models are essential diagnostic tools for management to decipher how changes in policies and decisions affect financial performance. In a CRM environment, this process disintegrates. The assumptions and relationships on which conventional financial data sources and analytical methods are built become inadequate, because CRM requires a systems perspective instead of a component perspective. The significance of CRM models lie in their ability to expose the effects of interactions within a company and a company its customers. Two types of CRM budgeting-forecasting models exist: Activity-based and Continuity-based. Both have been discussed in the article. Fortunately, despite their differences, the prerequisites to develop these models are similar. The reasons are clearly defined objective, customer segmentation, customer migration method, and data availability. Thus, central to creating a CRM budgeting-forecasting model is the identification of relevant customer segments, interrelationships between business units, and the mechanics that actually move customers through their lifecycle.
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Format: HTML | Date: May 2003 | Pages: 1
