CRM Performance Management Posted Jun 30, 2003 Page 1 Click here
for full-size image Click here for full-size image  In two
previous articles I outlined how to create analytical methods
that support customer-focused profitability and forecasting &
budgeting analysis (" The Art of Customer Profitability
Analysis" and " The Financial Side of CRM"). I explained that
finance cannot continue to conduct business as usual in a CRM
environment, because its conventional analytical toolkits and
systems lack customer dimensions. This article, the last in the
series, focuses on the third area where finance has to evolve:
creating CRM objectives and metrics that can be translated back
into the traditional framework of income, balance, and cash flow
statements for financial planning and reporting. After all, CRM
success ultimately depends on irrefutably proving that realizing
CRM objectives leads to improved financial performance and is
the result of specific CRM activities. Becoming too preoccupied
with customer retention