CRM Midterm 1
What are some of the key components of customer experience?
Customer experience is the cognitive and affective outcome of the customer's exposure to, or interaction with, a company's people, processes, technologies, products, services and other outputs
What is CLV?
Customer life-time value. The value of a customer at anytime is the sum all past and future transactions either discounted (future) or compunded (past) to the present monetary value.
What is customer churn?
Customer turnover, Customers are lost for various reasons
Geographic structure
Divided into territory lines to increase customer service and offer face to face service nationally. Disadvantage diverse customers may apply product differently buying criteria different
Cobranding
Event marketing, Sponsorship, Alliances, Partnerships, Licensing, Product placement, Co-operative campaigns
Why is it important to have a CRM vision before embarking on a CRM project?
Having a clear high level statement vision that describes how the CRM program will change the business helps you set your priorities for the project.
KAM
Key account Managment - KAM is a structure that facilitates the implementation of CRM at the level of the business unit - A key account is an account that is strategically significant
Attributes of services
Mostly Intangible, Perishable, Heterogeneous, Inseparable
STARTS
Shareable, Transportable, Accurate, Relevent, Timely, Secure
Major relationship attributes
Trust and commitment
What is a relationship?
-A relationship is composed of a series of interactive episodes between parties over time. Episodes are time bound (they have a beginning and an end) and are nameable .Episodes are composed of a series of interactions. Interaction consists of action, and response to that action.
Steps to build a customer-related database
-Define data base function -Define info requirements -Identify info sources -Select technology and hardware platform -Populate database -Maintain database
Information sources
-Internal-Sales reports, transaction receipts, contact info -External-acquired through services, buy into databases already existing.
What is RFM?
-Measure behavioral loyalty. Recency, Frequency and Monetary value. R=time since last purchase F=amount of purchases in a recent time period M=Monetary value of purchases in a time period
What are some of the strategic goals for CRM?
Reduce cost of marketing Increase partner loyalty Increase profit margins Improve lead quality and conversion Reduce costs of sales Increase acquisition of new customers Increase marketing campaign response rates Acquire new customers Increase profit per customer Increase sales revenues Increase customer loyalty Increase customer retention Enhance cross sell opportunities Increase customer satisfaction
Organizational roles and CRM
Sales Rep Account Manager marketing manager market analyst campaign manager market manager customer relationship manager customer service agent.
What is value delivery?
Being able to provide or make good on the claims made in value creation.
Visual identity
Brand names, logos, images associated with brand
What are some of the differences between CRM as practiced by a retail bank, and CRM as practiced by an industrial goods manufacturer?
An industrial goods manufacturer believes that customers choose products with the best quality, performance, design or features. A retail bank shares a set of beliefs about putting the customer first. It collects, disseminates and uses customer and competitive information to develop better value propositions for customers. A customer-centric firm is a learning firm that constantly adapts to customer requirements and competitive conditions.
Dwyer's 5 phases of customer-supplier relationship evolution
Awareness Exploration Expansion Commitment Dissolution
Compare and contrast the role e-commerce in business-to-consumer and business-to-business contexts.
BTC: BTB: Smaller contacts bases,
Gartner's competency model of CRM (8 components)
CRM Vision: Leadership, Social Worth, Value Proposition CRM Strategy: Objectives, Segments, Effective Interaction Valued Customer Experience: Understand Requirements, Monitor Expectations, Satisfaction vs.Competition, Collaboration and Feedback Organizational Collaboration: Culture and Structure, Customer Understanding People: Skills,Competencies Incentives and Compensation Employee Communications Partners and Suppliers CRM Processes: Customer Life Cycle, Knowledge Management CRM Information: Data, Analysis, One View Across Channels CRM Technology: Applications, Architecture, Infrastructure CRM Metrics: Cost to Serve, Satisfaction, Loyalty, Social Costs
Definition of CRM
CRM is the core business strategy that integrates internal processes and functions, and external networks, to create and deliver value to targeted customers at a profit. It is grounded on high quality customer-related data and enabled by information technology.
What are some of the critical success factors for successful CRM strategies?
CSF's are attributes and variables that can significantly impact business outcomes Senior management commitment Creation of a multi-disciplinary team Objectives definition Interdepartmental integration Communication of the CRM strategy to staff Staff commitment Customer information management Customer service Sales automation Marketing automation.
Characteristics of commitment
Commitment arises from trust, shared values, and the belief that partners will be difficult to replace.Commitment motivates partners to cooperate in order to preserve relationship investments. Commitment means partners forgo short-term alternatives in favour of more stable, long-term benefits associated with current partners. Commitment entails vulnerability, leaving partners open to opportunism
Types of databases
Hierarchical, relational, network
What is IDIC?
Identify who your customers are and build a deep understanding of them Differentiate your customers to identify which customers have most value now and which offer most for the future Interact with customers to ensure that you understand customer expectations and their relationships with other suppliers or brands Customize the offer and communications to ensure that the expectations of customers are met.
What is network competence? What knowledge, skills and attitudes are associated with excellence at management of networks and management in networks?
Network competence is knowledge and skills about a network. A company that is high in network competence not only has the necessary knowledge, skills, and qualifications but also uses them effectively to manage relationships at the both the network level and the individual level. The steps to manage networks include -Identify network requirments -Acquire network expertise -Manage network performance
Definition of Organizational Culture
Organizational culture is a pattern of shared values and beliefs that help individuals understand organizational functioning and the norms of behavior.
What is value creation?
Points of difference that add additional to the customer such as warranties, coupons for future or other stuff like that
Types of CRM
Strategic- Strategic CRM is a core customer-centric business strategy that aims at winning and keeping profitable customers. Operational- Operational CRM focuses on the automation of customerfacing processes such as selling, marketing and customer service. Analytical- Analytical CRM focuses on the intelligent mining of customerrelated data for strategic or tactical purposes. Collaborative- Collaborative CRM applies technology across organizational boundaries with a view to optimizing company, partner and customer value.
What are the key differences between strategic, operational, analytical and collaborative CRM?
Strategic- Strategic CRM is a core customer-centric business strategy that aims at winning and keeping profitable customers. Operational- Operational CRM focuses on the automation of customerfacing processes such as selling, marketing and customer service. Analytical- Analytical CRM focuses on the intelligent mining of customerrelated data for strategic or tactical purposes. Collaborative- Collaborative CRM applies technology across organizational boundaries with a view to optimizing company, partner and customer value.
Phases of CRM Project (5)
Strategy Development Process Value Creation Process Multichannel Integration Process Performance Assessment Process Information Management Process
How do you conduct a SCOPE analysis of an organization? Identify the main members of the SCOPE network and assess how well the organization manages those relationships.
Suppliers -Customers -Oweners/inverstors -Partners -Employees