Define customer relationship management. Customer relationship management (CRM) is a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups. This is accomplished by organizing the company around customer segments, encouraging and tracking customer interaction with the company, fostering customer-satisfying behaviors, and linking all processes of a company from its customers through its suppliers.
1. Identify the six components of the CRM process.
2. Form a team and identify several local businesses that would benefit from a CRM strategy. Select one business and outline a plan for implementing a CRM strategy for that business. You may want to visit the company and interview managers about their current initiatives. When you have completed your CRM plan, share it with the class-and the company.
3. General Motors installs the "OnStar" system in many of its vehicles. OnStar is a location, information, and communication system available to drivers who wish to subscribe to the service. Go to the OnStar Web site, www.onstar.com, and read about some of the services that are offered to consumers. Based on what you learn, write a short report describing the various ways that OnStar can be used as a CRM tool, specifically in the context of creating interactions, gathering customer data, and customizing service offerings to customers.