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Customer Relationship And Technology: How Technology Can Improve Customer Retention

Customer Relationship And Technology: How Technology Can Improve Customer Retention



In my previous article, I have written about customer relationship management. In this article, I want to talk about some of the unknown facts about Customer relationships and technology. Follow me as we will look at that together in this article.


At the end of this lesson, readers should be able to understand the three basic sections that
Ø  CRM can be divided into Operational CRM,
Ø  Analytical CRM AND Collaborative CRM.

In looking at CRM, we have three broad areas that 0kM can be divided into. These are Operational 0kM, Analytical CRM and Collaborative CRM. We are going to discuss this briefly now but our subsequent discussions will fall into any of these three headings.
The three areas that CRM can be divided into CRM and Collaborative CRM.
into are: Operational CRM, Analytical CRM.





#1 Operational CRM

The goal of operational GUM is to achieve the automation of horizontally integrated business processes including customer touchpoints, point of sales, and legacy systems integration. We have said earlier that those front offices are the ones that relate directly with customers while back offices are chosen that do not relate directly with customers. A good example of such s the Audit Department or Personnel Managers who don’t have any business with customers.


Operational CRM has to do with CRM strategies and packages that are formulated in order to meet day to day operations of the business.  This includes some of the policies and programs that are formulated in order to meet the day-to-day needs of customers.



#2  Analytical CRM

Analytical CRM involves capturing, storing, extracting, processing, analysing and interpreting customer data to the corporate user At the onset, the organisation will make a deliberate effort to get as much information as possible about their customers. After this, the organisation must analyse the information and process it.


They must be able to remove duplicate information or information that is not necessary. Organisations should know that before any CRM initiative can be successful, it must have adequate information about their purchase decisions. This will help in making well-informed decisions. This will help them to meet the customers at the right place with the right products.



A good example of analytical CRM is that of a bank that has customers of different age groups. They have young and old who have accounts with them.


They must be able to come with different products and packages to meet different customers’ needs. Young adults need a banking service that can meet their needs while retired from service since they then would become fragile and might want to deal with the bank from the convenience of their homes.



#3     Collaborative CRM

Collaborative CRM is the application of collaborative services to facilitate interactions between the customer and the organisation. Under this, applications are deployed in order to make sure that all stakeholders work together in order to increase customers’ experience.


This might include Partner Relationship Management communities, Customer Interactive Centres, and electronic CRM among others. The aim of its introduction is to enrich the information and services available to customers, so as to increase customer loyalty.



At the end of this lesson, we have been able to understand that operational CR191 has much to do with applications and policies that relate to day-to-day activities in an organisation while Analytical CRM has much to do with those applications that are deployed to work on customers’ information. Collaborative CRM has to do with the involvement of stakeholders in order to increase customers’ experience and exit stake.

Brainstorming Session

  1. Using a well-known organisation in Nigeria as a case study, explain the three branches of CRM.


  1. To you, which branches of CRM are the most important?


  1. Why do you think Technology is very important to CRM?


  1. Explain operational and Analytical CRM with examples

Brainstorming Session

  1. How do you think that the adoption of analytical CRM technologies will help Korak Health Source, a health Insurance organisation located in Maryland USA to serve their customers better?
  2. Mr Anderson, an initiator of CRM of Brainingham Investment had just been invited by his state Manager to come and explain the reasons why the organization needs to have a centralized customer database. If you are in his shoes, what will be your arguments.

Action Point

PS: I know you might agree with some of the points that I have raised in this article. You might not agree with some of the issues raised. Let me know your views about the topic discussed. We will appreciate it if you could drop your comment. Thanks in anticipation.

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