6 2 customer relationship management 497869

Minh Phan is going over the numbers one more time. He is about to make the most important sales

presentation of his young career, and wants everything to be right. His prospective client, Media

Systems, Inc., is one of the country s leading media and communications organizations. Media Systems

primary challenge is how to effectively manage its diverse customer base. The company has

70,000 publication subscribers, 58,000 advertisers, 30,000 telephone services customers, and

18,000 ISP (Internet service provider) customers. The company had little information about who its

customers truly were, which products they were using, and how satisfied they were with the service

they received. That s where Minh and his company, Customer Solution Technologies, LLC, came

in. Through the use of customer relationship management software, Minh believed Media Systems

would be able to substantially improve its ability to cross-sell and up-sell multiple media and communications

services to customers, while substantially reducing customer complaints.

1. What percentage of the total does each of the four customer groups represent? Round to the

nearest hundredth of a percent.

CASE STUDIES

2. Minh s data shows that on average, only 4.6% of customers were purchasing complementary services available within Media Systems.

By using his company s services, Minh was projecting that these percentages would triple across all user groups within one year. How

many customers would that equate to in total for each group? What would be the difference compared to current levels?

3. Customer complaint data showed that within the last year, complaints by category were as follows: publication subscribers, 1,174; advertisers,

423; telephone service customers, 4,411; and ISP customers 823. What percentage of customers (round to two decimal places)

complained within the last year in each category? If the CRM software were able to reduce complaints by 50% each year over the next

two years, how many complaints would there be by category at the end of that time period? What would the number of complaints at the

end of two years represent on a percentage basis?