"'Before the data warehouse, the person who yelled the
loudest got the best service. Now our most valuable customers get the best
service,' says Alicia Acebo, Continental's data warehousing director."
"Altendorf says the response rates for Ace's marketing
campaigns run between 6 percent and 20 percent. The average response rate for a
target marketing campaign is between 2 percent and 3 percent, according to
"Since building its new system, the airline reports
earning an average of $200 in revenue on each of its 400,000 valuable customers,
and an additional $800 in revenue from each of the 35,000 customers it places in
its most profitable tierall because it accords them better service."
CRM: Challenges and Advice for CIOs in 2007
Determining which areas to
focus on and which to bypass can make or break your business. Global management
consultancy Accenture recommends several steps you can take that will help
distinguish your business from your competition.
"It’s clear the CRM
landscape is evolving rapidly," says Woody Driggs, managing director of CRM at
Accenture. "Keeping up with the changing customer environment is a real
To remain competitive,
Driggs says, "CIOs have to be ahead of business needs on architecture. They need
to focus on what processes and capabilities the business should be rolling out.
Translate that insight into foresight; what technologies do you need to give
customers what they will need?"
Is CRM Dead? – Allen Bonde, CIO
“ First, there must be a core
driven by business rules and even knowledge management, rather than just a
database. Second, solutions must address all modes of interaction, whether with
an agent or salesperson, on the Web via self-service, or peer-to-peer via user
forums and other collaboration techniques. Third, solutions must be adaptive, by
applying analytics and personalization approaches, so that organizations can
anticipate customer needs, proactively push out solutions, recommendations or
offers based on who the user is, their skill level, what their preferences are,