Does CRM Really Pay? A General Management Perspective
11th Dec 2000
This article explains whats going wrong with CRM, describes some successes and distills the key learnings. Its aim is to assist general managers to re-focus their institutions CRM initiatives to realize their full potential. It analyzes the problems in terms of five influential soundbites, explaining that without thoughtful adaptation to the specific situation, these are at best irrelevant and at worst misleading: *20 of customers account for up to 120 of profits *You need to know the individual profitability of your customers *It costs 5 times as much to acquire a new customer as retain an existing one *You need a fully integrated, real-time customer information system *You need to organize around customer segments. The paper goes on to provide some examples of successful CRM, focusing particularly on new customer acquisition, differential pricing, reducing customer attrition, and risk assessment and management.