Unlocking the True Value of CRM

11th Dec 2000
This paper begins by defining CRM, and posits two key guiding principles: (1) understanding the drivers of current and future customer profitability; and (2) using this understanding to influence the allocation of resources across all areas that affect customer relationships, including communications, customer service, billing and collections, product/service development, pricing strategies etc. It goes on to analyze modern CRM as a "supply-side phenomenon" and itemizes some of the factors which have caused CRM to develop so fast - linking this analysis and these factors in with some of the recent problems in the field. The paper concludes by identifying five main reasons why CRM is not working effectively, and outlines some fundamental strategies for success.

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