Assume that you are the Director of Information Technology at a major national c
ID: 454609 • Letter: A
Question
Assume that you are the Director of Information Technology at a major national company that makes and sells fine clothing through mail order catalogs. Your company has the ability to customize each mailing to fit the specific needs of different target groups. You are interested in decreasing the expense of mailing your catalogs while increasing the amount of sales. You have access, through a very affordable seller of information and from your own database, to critical information about a wide range of potential customers. This information includes previous purchases, buying habits, price ranges, etc. What type of system would you propose building and why?
Explanation / Answer
The company should build a robust CRM system that will covert important data into useful information. It will help in:
a. Increasing conversions /sales
b. Forecasting sales
c. Predicting consumers’ preferences and trends of buying
d. Pricing of products to maximize profits
All the above benefits will help the company to reduce expenses and maximize benefits through proper use of the MIS system of CRM. Besides, company can also use decision support system to focus on some of the specific trends and factors while segregating customers into clusters. It will further help company to segregate their base of target consumers and focus upon them accordingly. It will give new dimensions to the company strategy in building sales.