Customer Relationship Manager(CRM) Question:

The business conducts situation analysis by considering internal and external factors. This is nothing but SWOT (Strength, Weakness, Opportunities, and Threats) analysis to find out how the business is doing with the objective of examining readiness for CRM implementation.

The managers analyze and appraise existing customer strategy, served market segments, market position of business, marketing channels, etc. They try to find out the answers for the questions such as −

► Which customer segments does the business serve?
► What are the marketing and customer related objectives of the business?
► What is the business position and market share?
► What is the cost to customer management?
► How effective the present strategies of customer acquisition and retention?
► Which products/services under what category does the business offer?
► To what extent the customers are aware of the products/services?
► Who are business competitors, and what are profit margins?
► Which channels we use for product distribution? What is the depth of channel penetration?
► Which channels are effective? Which are becoming obsolete?
► How do channel partners find dealing with our business?
► Will the business buy, rent, or create its own CRM? What is each option's feasibility?

Thus, situation analysis serves as a foundation to know what the managers want to achieve by implementing CRM.