AT ITS CORE, customer relationship management is simply about increasing profits and sales by better understanding who your customers are, which ones are driving in the greatest profits, what your high-value customers want, and how to satisfy them. While it may seem the only way to do this is to spend millions of dollars on a CRM software implementation project, the reality is that you can get started using the resources you already have.
Customer Value Metrics
Once you can quantify a customer’s worth to your company, you can determine how much you want to spend marketing to that person. Meet with your finance folks and other product managers to define what aspects of the relationship should be scored to measure customer value and how you will weight them. Aspects to consider: past purchasing, anticipated product need, customer support need, customer match to demographic profile of target customer base (once you’ve identified a target base).
Next, pull in your internal or external analytic resources to build the required algorithms. Present your models to the finance folks to get their buy-in
