Research On Customer Relationship Management Of TE Company Using Data Envelopment Analysis

Customer is important equity for firms. As increasing emphasis on customer strategy, from2008TE commence to implement her customer relationship management. In the3years, lots of resources have been consumed to establish customer-focused business units, for the purpose of better relationships with strategic customer. What’is the performance of customer relationship management by TE, how to earn from customer relationship, the managers is keenly to get answer.The study is for implementation of customer relationship management. Based on TE’s current category of customers and service processes, the author analyzes input and output of TE customer relationship management. It is concluded that TE’s investment in customer relationship management is incompletely transformed into customer value and customer satisfaction. Some of customer is costly to serve, which is recognized as one of three TE’s non-profit clients.As shown by DEA result, for certain step of service process, its occupation of resources is not necessary. With analyzing resource and capacity of TE and the variety of demand of customers, the source of different customer profitability is identified. The efficiency of resource decides whether customer relationship management work or not. The paper present how to implement customer relationship management:(1) Use DEA to discriminate profitable customer from those unprofitable (2) Select profitable customers, when allocate additional resources among those profitable customers, the output recorded in history is the only criteria.(3) Improve service processes for non-profit customers, drivers of cost should be in control and under managed.In the paper, DEA is applied to a wide number of difference situations where efficiency comparisons are required. DEA help customer selection at beginning, failure analysis then, result simulation at last. Through the input-output analysis, rather than estimation from experience, it’s hoped for other firm wise decision to implement customer relationship management.