Business Driven Technology 6th Edition by Paige Baltzan

Exercise 23

Customer Relationship Management Strategies
On average, it costs an organization six times more to sell to a new customer than to sell to an existing customer. As the co-owner of a medium-sized luggage distributor, you have recently been notified by your EIS systems that sales for the past three months have decreased by an average of 17 percent. The reasons for the decline in sales are numerous, including a poor economy, people's aversion to travel because of the terrorist attacks, and some negative publicity your company received regarding a defective product line. In a group, explain how implementing a CRM system can help you understand and combat the decline in sales. Be sure to justify why a CRM system is important to your business and its future growth.