Learn the evaluation function of CRM

One of the greatest values ​​that CRM systems bring to organizations / businesses (TC / DN) is to make assessments related to customers (customers).

The evaluation function of CRM has many levels, depending on the information provided: from statistics to processed data, from current assessments to forecasts for the future. Depending on the needs of TC / DN, the level of processing information to be achieved by CRM system is determined differently with the following contents:

- Planning policies of the Corporation / Enterprises for issues related to the Planning.

- Operation of parts directly in contact with customers.

- Forecast (short and long term) about markets and customers.

The CRM system in each TC / DN is often different, depending on the method, assessment criteria, business sector as well as the combination of criteria in a decision. In fact, at the same time, many methods and evaluation criteria are often used by TC / DN to have a comprehensive view of their customers and markets.

External assessment

External assessment to determine the customer's response to TC / DN and their products (SP). These statistics show the effectiveness of the ongoing business strategy, including the brand building results of TC / DN. Some commonly used methods: the 'customer equity' model, analyze the value of the plan, control the credibility of the customer .

The problem for the forecasting of CRM system is the combination of theory and management experience to determine possible possibilities for input data.

The 'customer equity' model relates to an assessment of the customer (objective or subjective) of the brand and the ability of the Customer to engage in the brand. This is a model that calculates the economic benefits from developing one or several components of 'customer equity' that are quantified into money. Using this model, CRM systems perform assessments in two directions: the relationship between components of 'customer equity' with business and the relationship between the KH's response to the component of 'customer equity'.

Analyzing the value of the plan to determine how to change the price and quality of SP to influence the market and is a key information channel for external assessment of CRM. The most commonly used method is to compare prices and quality of SPs among competitors through the chart. This chart will indicate the wish of KH on prices, quality and choice SP KH. From the above indicators, the CRM system to build the evaluation algorithm to provide forecasts to help managers make decisions about the quality and structure of SP.

Customer confidence (including employees and partners of TC / DN) is an important factor in the development of the Corporation. Implementing the control of trust is an idea of ​​' if currently the TC / DN has a few plans to leave, the benefits of the TC / DN will be greatly affected in the future '. In other words, the data of customer confidence will help TC / enterprises forecast the future business situation. The CRM system indicators need to be statistically: the number of new customers, the number of reduced customers and the number of old customers leaving, the number or percentage of potential customers is actually transferred. The trust of KH also shows through brand reputation. Branding is an intangible asset but the CRM system quantifies the factors related to science that affect TC / DN's brand by identifying these components as tangible assets. However, the determination of each element in the overall value of the brand depends on each evaluator and is expressed by the evaluation algorithms of CRM software, the kernel of the CRM system.

Review inside

Internal assessment of CRM system focuses on assessing capacity of providing products and services of enterprises / companies through activities directly related to the plan: marketing, sales system, service activities and system provides and guarantees.

Marketing is one of the most basic content in business strategy of TC / DN and efficiency is often reflected in business results. In the CRM system, marketing results are often evaluated through indicators: the rate of participation in marketing activities, RFM index (short for recency - frequency - monetery value), the rate of purchase SP and average value obtained after each marketing campaign, the number of customers who buy / not buy SP / DN or switch to buy SP of competitors. These indicators help TC / DN evaluate their marketing activities, thereby developing plans and implementing marketing activities for the next phase.

CRM system promotes the development of automated sales, assesses the effectiveness of each salesperson, controls sales activities and other related issues. The performance of the sales system is assessed by the following indicators: total sales value, potential rate of becoming a buyer, number of new customers, sales ratio by sales or marketing, order quantity through sales team or sales representative .

In CRM, the service system is managed in two parts: receiving requests (1) and supporting processing requests (2). Evaluate the operation of the department (1) through the indicators: the number of service requirements and the duration of the problem, the waiting time of the customer, the time to process internal requirements, the number of requests of Customers do not receive, the total processing time for each request . For TCs / companies using web-based solutions, they must manage and evaluate the website's activities. Indicators showing the website's performance are listed right on the website but CRM software uses these data to provide other relevant information such as: the reliability of the plan, the ability to receive and information processing from S . Activities of the parts (2) is the visible part of the system of science and service as one of the important factors to evaluate the science policy of TC / DN. To evaluate, CRM system marks the satisfaction of customers with service quality. Scale is used reflects the subjective evaluation of TC / DN and objectivity of science to support.

Building a solid supply system from the TC / DN and other suppliers will ensure that TC / enterprises are able to meet the problems arising in the business process. Evaluation of supply and assurance systems is primarily aimed at suppliers, but evaluation indicators also show the customers' needs and reactions. The main indicators for evaluating the supply system and ensuring include: SP transport ratio according to demand, demand response / non-response rate, average response time, bar duration math for suppliers and receiving from KH, relative costs for risks in the system provided.

Forecast of markets and plans

Market forecasts, Science is one of the important functions of CRM. The complexity and instability of forecasting is already taken into account, but today, part of the burden of forecasting has been implemented by IT. There are many requirements forecasting cater for TC / DN, from policy-making business to marketing, sales with many different methods, but using them in the CRM system like depends entirely on demand demand of TC / DN. CRM system has the ability to implement predictive algorithms but requires input information to be quantified. However, to predict exactly requires results to be based on several parameters and this is not always done well. The problem for the forecasting of CRM system is the combination of theory and management experience to determine possible possibilities for input data. In other words, CRM system needs to be able to accumulate 'management experience' as an intensive system.

The ' customer equity ' model, used to quantify the value of KH, is mentioned by Rust, Zeithaml and Lemon in 'Driving Customer Equity: How Customer Lifetime Value is Reshaping Corporate Strategy'. 'Customer equity' is the total value that Customer brings during the time of buying products and services of TC / DN and taking into account the rate of depreciation during that time. 'Customer equity' is a fundamental component of CRM's review, consisting of three main components:

- Value equity : Customer's objective assessment of the value of enterprise / business brought to them.
- Brand equity: recognition of the scientific opinion of the TC owner / DN and what TC / DN bring them.
- Retention equity : ability to retain customers.

Dr. Le Quoc Anh