Operational CRM: Definition & Examples

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  • 0:05 What Is CRM?
  • 1:23 What Is Operational CRM?
  • 2:08 Components of Operational CRM
  • 4:01 Applications of…
  • 4:47 Lesson Summary
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Lesson Transcript
Instructor: Sudha Aravindan

Sudha has a Doctor of Education Degree and is currently working as a Information Technology Specialist.

Operational CRM, or operational customer relationship management (CRM), falls under the CRM umbrella. Operational CRM includes business strategies and automated software tools the company uses to help the customer have a pleasant and rewarding experience with the company.

What Is CRM?

In general, CRM, or customer relationship management, refers to the processes and techniques used by a company to analyze the interactions made by a customer with a company. The goal is to help with improving the services provided by the company to the customer and to increase customer satisfaction. Analytical and operational CRM are the two main components of CRM; in this lesson we will learn about operational CRM.

Let's begin with a story to illustrate. Kim needs a new lawn mower, so she shops around and narrows her choice to one of two: Brand A or Brand B. After reviewing the features and price ranges of both manufacturers, she decides on Brand B. Kim will become a loyal customer of the brand if all her interactions with the company are positive and pleasant. For example, when she contacts the manufacturer with questions if she finds the customer service to be unresponsive, she may decide not to stay with that brand anymore. This is why CRM is critical to any company: they have to continuously evaluate their customer relationship processes so that the customer is always happy and will want to return to the company for all future purchases.

What Is Operational CRM?

Operational CRM is a subset of CRM focusing on the direct interactions of the customer with the company, with a view to keeping the customer satisfied and happy, thus helping the company grow. There are two main methods by which a customer can have direct interactions with the company. These include:

  • Face-to-face personal interactions
  • Interactions with any websites or call centers (or other means of communication)

Examples of personal interactions would be when the customer interacts with people from the call centers or customer service representatives. Examples of systems interactions would be when the customer interacts with automated software systems for sales, processing orders, and monitoring inventory - also called sales force automation.

Components of Operational CRM

The three main components of operational CRM are marketing, sales force, and service.

Marketing refers to marketing campaigns created by the company for specific events and promotions to help motivate the customer to contact the company and buy their products. If a company advertises on TV about a new data plan, and a current customer calls to find out more about that specific offer, the marketing campaign is a success if the customer purchases the new data plan based on the promotion offered in the advertisement.

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