6-2 Customer Relationship Management

Minh Phan is going over the numbers one more time. He is about to make the most important salespresentation of his young career, and wants everything to be right. His prospective client, MediaSystems, 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 has70,000 publication subscribers, 58,000 advertisers, 30,000 telephone services customers, and18,000 ISP (Internet service provider) customers. The company had little information about who itscustomers truly were, which products they were using, and how satisfied they were with the servicethey received. That’s where Minh and his company, Customer Solution Technologies, LLC, camein. Through the use of customer relationship management software, Minh believed Media Systemswould be able to substantially improve its ability to cross-sell and up-sell multiple media and communicationsservices to customers, while substantially reducing customer complaints. 1. What percentage of the total does each of the four customer groups represent? Round to thenearest 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. Howmany 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 nexttwo years, how many complaints would there be by category at the end of that time period? What would the number of complaints at theend of two years represent on a percentage basis?