January 6, 2009
Customer relationship management (CRM) - is that a management accounting technique?
Can you answer chickadEE's question about CRM?:
And if so, what is it? and what kind of reasons would you use it in an airline industry
CRM Tips
And if so, what is it? and what kind of reasons would you use it in an airline industry
CRM Tips
Filed under More CRM Answers by Guest Author
Comments on Customer relationship management (CRM) - is that a management accounting technique? »
No it's a softward package that lets you track, use and retireve all sorts of inormation about your customer.
Very useful, if used well.
CRM is NOT an accounting technique. It is the process in which you track a customers interaction with a company, how well they are 'serviced', with trouble tickets, with services, products and the like.
With the airline industry, here is how you could use it…
CRM can keep track of when someone flys and what 'level' customer they are (airline miles, coach, business, 1st class) and their length of trips. If they were to stop flying with you, CRM could alert you to call or email and offer a discount for flying (because they are so important), or to ask for their input into why they are not flying with ABC airlines.
It is, in a way, targeted marketing. Using the interaction of tickets, with troubles encountered, etc.
No, CRM is typically a computer system that allows a company to manage its client base. Depending upon the size of the company, a CRM can be as simple as a desktop software solution (Access was one of the first, simple CRMs) to an ERP-type solution such as Siebel.