Clearly CRM efforts must integrate analysis across all functions and channels to pinpoint those customers and tap their full potential. However, the investment case for CRM applications remains soft because: • many operational packages offer limited analytical strength • serious quantitative analysis remains a speciality market • internal data provides only a partial, static, customer view. Firms must manage customer profitability. It is often agreed that ultimately there are no unprofitable customers, only poorly managed companies.
Firms must model customer behaviour, turn analysis into action and revise constantly to maximise each customer's profit. To support their needs, today's static, data-oriented CRM systems must add action-oriented analytics to calculate the investment needed to retain the best customers. . Companies must create a customer-centric organisational structure, 2. Don't expose field employees to raw profitability information; marketers must package it. 3. Uncoached line employees with access to rofitability data may adopt a new - and potentially demeaning et%tu toward less rewarding cus-S tomers. Rein in these tendencies IiAu im nicating policies detailing how profitability data should be use 4. Share profitability gains wit cusVnzers. 5. Augment the marketing manufacturing service and distribution experts. 6. Activity-based co i gibs way to customer-based costing in tandem with the accounts department on customer management. 7. Provide marketers with customer-level profit information. 8. Privacy obsession will hurt European profitability metrics; be prepared. 9. Low-profitability customers will revolt - unsuccessfully. 10. Ensure all databases are co-ordinated and synchronised - in real time.