Explain three ways that a CRM system can be used for marketing research.
What will be an ideal response?
The data collected and analyzed in a CRM system enable companies to:
Identify the frequency and size of customer orders. By charting the frequency, size, and specific items included in an order, it's possible to assess customer satisfaction.
Determine the actual cost of a customer order. Tools such as activity-based cost accounting can allocate time and overhead costs to specific customers. By combining that with information from each customer order, it is possible to get accurate cost and profitability measures of individual customers.
Rank customers based on established criteria like profitability. Not all customers are equal, and the customer mix changes over time. Companies need to understand how each customer rates on a defined set of criteria to better allocate current resources and develop strategies for future growth. Starbucks' reward system actually adjusts based on profitability and usage. Frequent users, for example, have to earn more stars (buy more products) for rewards than newer, less frequent customers.
Calculate the efficiency of the company's production and distribution system. Tracking customer orders makes it possible to assess many of the company's critical functions.
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