Statistical Methods in Customer Relationship Management

1.5 Conclusion

Up till now we have seen the basics of CRM and the role of databases, technology, and metrics in implementing CRM initiatives. While the connection between the components for ensuring CRM success is fairly straightforward, the challenge for marketers is in generating the metrics. With advances in data collection and database technologies, identifying the correct approach to employ for generating metrics could determine the success or failure of a CRM campaign. So how can marketers generate metrics that can help them in managerial decision making?

Using statistical methods and models, it is possible to reduce volumes of data to easy-to-use metrics that can help in evaluating business performance. The following chapters discuss in detail various statistical methods used in designing CRM campaigns involving customer acquisition, customer retention, preventing customer churn, and customer win-back. The models discussed in these chapters to address specific marketing challenges can then be used in comprehensive metrics to measure marketing and business performance.