Discuss and define the goal, the scope of the problem, a few feasible alternatives, and at least one measure of the quality of the possible outcomes.
Sample Solution
Decision Problem: Upgrading Our Company's Customer Relationship Management (CRM) System
Goal: Improve customer satisfaction and retention by 15% within the next 18 months.
Scope: We will focus on selecting and implementing a new CRM system to improve our ability to track customer interactions, personalize communication, and address customer needs more effectively.
Alternatives:
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Upgrade Our Existing CRM System: Our current CRM system has some limitations, but we could potentially address them by purchasing additional modules or functionalities. This would be the quickest and least disruptive option, but it may not provide all the features we need to achieve our goals.
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Implement a Cloud-Based CRM System: Several cloud-based CRM systems offer a wider range of features and functionalities at a potentially lower upfront cost than a traditional on-premise system. However, migrating data to a new system and ensuring user adoption could be challenging.
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Develop a Custom CRM System: We could invest in developing a custom CRM system tailored to our specific needs. This would offer the most flexibility and control, but it would also be the most expensive and time-consuming option.
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Do Nothing: We can continue using our current CRM system without any upgrades. This is the least expensive option, but it is unlikely to help us achieve our goal of improving customer satisfaction and retention.
Full Answer Section
Measure of Quality: The primary measure of the quality of the outcome will be the increase in customer satisfaction and retention, as measured by metrics like:
- Customer satisfaction surveys
- Net Promoter Score (NPS)
- Customer churn rate
- Number of repeat purchases
We will also track additional metrics such as:
- User adoption rate of the new CRM system by employees
- Time to implement the new CRM system
- Return on Investment (ROI) of the new CRM system
Additional Considerations:
- We will need to involve key stakeholders from different departments (sales, marketing, customer service) in the selection process to ensure the new CRM system meets everyone's needs.
- Data security and compliance with relevant regulations must be a top priority when evaluating and implementing a new CRM system.
- Training and support for employees on using the new CRM system will be essential for successful adoption.
By carefully evaluating these alternatives and the associated measures of quality, we can make a well-informed decision about how to upgrade our CRM system and achieve our goal of improving customer satisfaction and retention.