CRM Value Chain CRM value chain identifies five key steps in the development and implementation of a CRM strategy :customer portfolio analysis, customer intimacy, network development, value proposition development, and manage customer life cycle. In brief, the five steps are as follows. Two Types of CRM Operational CRM is focused on the automation of the customer-facing parts of businesses. Various CRM software applications enable the marketing, selling and service functions to be automated. The major applications within operational CRM are as follows. Steps for Effective CRM Implementation It is important that a CRM solution is business-oriented. This means that the solution should reflect the way the enterprise wishes to work in the future. To do this, it is necessary to start with the enterprise's CRM strategy and to ensure that once implemented the system will support the customer, channel and product strategies. Customer Lifetime Value The actual value of a customer is equivalent to a quantity that is frequently called the customer lifetime value (LTV), or the net present value of the stream of expected future financial contributions from the customer. Every customer of an enterprise today will be responsible for some specific series of events in the future, each of which will have a financial impact on the enterprise. Database Marketing Database marketing is now an essential part of marketing in many industries. The main principle of database marketing is that at least part of the communication organizations have with their consumers is direct. From this simple principle has grown a whole new discipline. However, it has not grown that quickly. The seeds of database marketing as we use it today were sown in the 19th century by the US mail order industry, which served so well the needs of remote farmers, ranchers, settlers and new townships. CRM Application Customer relationship management applications are generally organized into the primary functions of marketing, sales and service. The following descriptions outline the main elements of each of these application areas. Business Questions for CRM Implementation Before you can effectively use a reference, you must have a good idea of what you are trying to accomplish with your data warehouse. Unlike traditional systems, these definitions might be somewhat fuzzy. Rules for Discussions with CRM Vendors Keep the following rules in mind when talking with a provider's references. They are all just common sense, but it's very easy to lose sight of possible miscommunications if you are not careful.

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