The importance of analysis and planning in customer relationship marketing: Verification of the need for customer intelligence and modelling

Abstract

Customer revenue management (CRM) is widely recognised as beneficial, yet many organisations who have used this approach have not found the results they had hoped for. This paper reports a survey of businesses using CRM to assess if activity in this area can be correlated with business success and to allow verification of the findings of Woodcock1 who found a positive correlation. Interviews with managers responsible for CRM and scoring are reported and their effort in customer data collection, maintenance, segmentation and modelling are assessed. This analysis and planning is perceived to be the foundation of CRM. It is found that companies who scored well in analysis and planning also performed well in regard to business performance metrics.