Chapter 10 Customer Relationship Management
Target Marketing Efforts
addressing specific customer segments avoids becoming a nuisance to other customers
Customer Value Determination
calculating the customer lifetime value for firms
Pretransaction Elements
precede the sale mission statement, customer service policies
churn reduction
reducing customer defections
Seven R's Rule
right product right quantity right condition righ place right time right customer right costs
Measuring Customer Satisfaction
surveys, feedback cards
Sales Force Automation (SFA)
used for documenting field activities, communications with the home office & retrieving sales history
QR Codes
using the camera function on a smartphone and downloading a QR code reader app
Mobile Marketing
placing advertising messages on mobile phones
CRM Cloud Applications
Cloud computing & on demand offerings accessed via web browser
Knowledge Management
Enables quick decision making, better customer service & a better equipped & happy sales staff
Segmenting Customers
Grouping customers to create specialized communications about products
Clickstream
How a customer navigates a Website
Sales Territory Management
Sales Managers obtain information of each sales reps activities
Lead Management
Sales reps can follow prescribed tactics when dealing with prospects to aid closing the deal
6 Steps in Designing & Implementing a successful CRM Plan
Step 1: Creating the CRM Plan Step 2: Involve CRM users from Outset Step 3: Select the Right Application & Provider Step 4: Integrate Existing CRM Applications Step 5: Establish Performance Measures Step 6: Training for CRM Users
Sales Activity Management
Tool offering sales reps a guided sequence of sales activities
Personalizing Customer Communications
Understanding customer behaviors & preferences, firms customize communications
Cross Selling
additional products are sold as the result of an initial purchase
Call Centers
can categorize calls, determine average resolution time, forecast future demand, improve the overall productivity of the staff ,increasing customer satisfaction levels
Relationship Marketing or Permission Marketing
customers select the type & time of communication (opt-in or opt-out)
Social CRM
engaging the customer in a collaborative conversation
Customer Defection Analysis
finding methods to retain customers
Predicting Customer Behaviors
firms forecase likelihood of customers purchases
Posttransaction elements
occur after the sale & include warranty repair capabilities, complain resolution, product returns & operating information
Transaction Elements
occur during the sale & include the order lead time, the order processing capailities & the distribution system accuracy
Event based marketing
offer the right products & services to customers at the right time