Implementing a CRM Strategy Organizations can find their most valuable customers
ID: 449884 • Letter: I
Question
Implementing a CRM Strategy
Organizations can find their most valuable customers through “RFM” - Recency, Frequency, and Monetary value
How recently a customer purchased items (Recency)
How frequently a customer purchased items (Frequency)
How much a customer spends on each purchase (Monetary Value)
Develop a CRM strategy for a new company that sells office supplies. The strategy should address how to gain new customers and how to keep existing customers. For example,
The company should create personal promotions for its best customers
The company should target new customers in the surrounding area, especially business customers
The company should try to buy a list of business customers in the area from a valid source
The company should advertise in local trade papers, newspapers, radio stations, and restaurants
The company should track the responses it receives from the various advertising sources
Explanation / Answer
Customer relationship management is intended to assist organizations to improve their customer loyalty, aim at beneficial customers, and modernize customer communication process.
The company can use the following CRM strategies to gain new customers and retain the existing ones: