3.0 EVOLUTION OF CRM

As one of the key business processes, CRM focuses on developing and managing relationships with internal and external customers. A CRM business process consists of strategic and operational sub-processes as follows.

1. The strategic sub-processes

- Review corporate and marketing strategy

-Identify criteria for categorizing customers

-Provide guidelines for the degree of differentiation in the Product/Service Agreement (PSA)

- Develop a framework of metrics

-Develop guidelines for sharing process improvement benefits with customers

2. The operational sub-processes

- Differentiate customers

- Prepare the account/segment management team

-Internally review the accounts

- Identify opportunities with the accounts

- Develop the PSA

- Implement the PSA

v Measure performance and generate profitability reports

CRM is part of a demand chain solution to address challenges in attracting potential customers and creating customer loyalty. Demand chains address issues related to customer demand, including product information, the product itself, services related to the purchased products, the product’s ease of use and performance, the purchasing experience, and after-sales support (Richard, 2010).

Three (3) phases in the evolution of CRM is reporting, analyzing, and predicting. CRM reporting technologies help organizations identify their customers across other applications. CRM analysis technologies help organizations segment their customers into categories such as best and worst customers. CRM predicting technologies help organizations make predictions regarding customer behavior such as which customers are at risk of leaving (Paige, 2009).