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CRM Architecture

By Exforsys | on December 10, 2006 |
CRM Tutorial

CRM Architecture

The Customer relationship management architecture can be broken down into three categories, and these are operational, collaborative, and analytical. Each plays an important role in Customer relationship management, and a company that wants to success must understand the importance of using these three components successfully.

Operational CRM deals with the automation of certain business processes. An example of business processes that are connected to operational CRM are marketing and sales. When a connection is made to a customer, the information related to this interaction will be automatically stored in a database, and the company can pull up specific information on that customer when it is needed.

Operational CRM can further be broken down into three components. These components are Enterprise marketing automation, Customer service automation, and Sale force automation. The Enterprise marketing automation will give the company information about the business climate, and it will also provide them with crucial data on their competitors, as will as trends within the industry and other important variables. As the name implies, Enterprise marketing automation deals with strategies a company can use to strengthen their marketing tactics. Customer service and support will automate specific processes that are connected to service. An example of this could be item returns or customer complaints.

Sales force automation will be responsible for automating some of the company’s sales tasks. An example of tasks that SFA would automate are demographics, customer needs, and accounting management. A number of corporations will use call centers to store data on their customers. Once the customer makes a call, the customer service representative can provide them with relevant information. Many companies will also automate processes such as allowing customers to access their accounts. The next important part of CRM architecture is Analytical CRM. As the name suggests, Analytical CRM deals with analyzing data that is collected by the company. This data will be analyzed so that the company can enhance its customer service capabilities.

By enhancing its customer service capability, a company will build a stronger relationship with its customers. There are a number of common ways that Analytical CRM is used to achieve this. A number of companies will use the data they’ve collected and analyzed to cross-sell products to their customers, as well as retaining customers that may normally switch to another company. Analytical CRM can also be used to provide important information to customers within a short period of time. In addition to building stronger relationships with customers, Analytical CRM can be an important tool for fraud prevention and detection. It can analyze the patterns of sales, inventory, and profits in order to find any patterns that are not consistent.

Analytical CRM is also important when it comes to both product development and risk management. It is important to realize that Analytical CRM is an ongoing process. The company may need to alter its strategies or methods based on the information that is analyzed through this process. The third important aspect of CRM architecture is Collaborative CRM. Collaborative CRM is important because it places an emphasis on the interactions that a company will make with its customers. These interactions could be personal, or they could come through mediums such as the telephone or the Internet. Collaborative CRM will give companies a powerful form of communication that will utilize multiple technologies.

It will also be responsible for providing services over the Internet so that the costs of the service can be reduced. When interactions are made with customers, Collaborative CRM will allow the company to provide them with useful information. At the highest level, CRM should be an important part of all interactions that a company makes with its customers.

When this done, a company can become highly successful. The goal of CRM is to find out what customers need, and to make sure those needs are filled. Once a company is making interactions with their customers, they can collect and analyze information. This information can be used to strengthen interactions.

Customer relationship management can also be used to stop problems before they occur. A number of companies strive to solve problems once they occur, but CRM can be used to stop potential problems before they occur. Preventing a problems is much easier than solving it.

« « How To Combine ERP With CRM
The Three Constraints of Project Management » »

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Editorial Team at Exforsys is a team of IT Consulting and Training team led by Chandra Vennapoosa.

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