Customer Relationship Management

Post-Transaction Elements

warranty repair capabilities, complaint resolution, product returns, and operating information.

CRM Plan

(1) Objectives of the CRM program (2) CRM's fit with the corporate strategy (3) New applications to be purchased or developed (4) Integration or replacement of existing legacy systems (5) Personnel requirements (6) The costs and time frame for implementation

Automated Sales Force Tools

(1) Sales Force Automation (SFA) (2) Sales Activity Management (3) Sales Territory Management (4) Lead Management (5) Knowledge Management

Seven R's

(1) The right product (2) The right quantity (3) The right quality (4) The right place (5) The right time (6) The right customer (7) The right cost

Perfect Order

(1) The right product (2) The right quantity (3) The right quality (4) The right place (5) The right time (6) The right customer (7) The right cost (8) The right documentation

5

"Finding a new customer costs _____ times as much as keeping an old customer"

Cloud Computing (Software as a Service)

(1) Ala Carte and on demand offerings accessed via-web browsers (2) Changing the cost structure of CRM applications

Call Centers (Customer Contact Centers)

(1) Categorize calls (2) Determine average resolution time (3) Increase customer satisfaction levels (4) Provide input to forecast future demand (5) Improve the productivity of the overall Staff

Trends in CRM

(1) Customer Data Privacy (2) Social Media (3) Cloud Computing (Software as a Service)

simple : complex

A successful CRM program is both _____ and _____

Social Media

Creating and cultivating virtual communities around product or brand is a powerful way to engage customers.

CRM Program 1

Creating the CRM Plan

Customer Value Determination

Determine customer lifetime value so that appropriate communications, benefits, services or policies can be established for each customer segment

Target Marketing Efforts

E-mail or direct mail saves labor and postage, reduces chances of being a nuisance.

Cross Selling (2)

E-mails from Amazon.com describing other products bought by people who purchased one or more of the items you just purchased.

Segmenting Customers

Grouping customers to create specialized communications about products.

Sales Territory Management

Sales managers obtain information on each sales rep's activities.

Lead Management

Sales reps can follow prescribed tactics when dealing with prospects to aid in closing the deal.

CRM Program 3

Select the right applications and provider

Personalizing Customer Communications

Understanding customer behaviors and preferences, allows a firm to customize communications aimed at specific groups of customers and is likely to result in greater levels of sales.

Pre-Transaction Elements

customer service policies, the mission statement, organizational structure, and system flexibility.

Complex

CRM is _____ in that it also means finding affordable ways to identify (potentially millions of) customers and their needs

Simple

CRM is _____ in that it involves training users and treating customers right, to make them feel valued

Measuring Customer Satisfaction

Customers are frequently given opportunities to provide feedback about a product, service, or organization.

Field Service Management

Customers can communicate directly with product specialists using wireless devices and the right diagnosis can be made quickly.

Relationship Marketing (Permission Marketing) (1)

Customers self-select the type and time of communication they want. Requires software and active customer participation.

Knowledge Management

Enables quick decision making, better customer service, and better-equipped and happy sales staff.

CRM Program 5

Establish performance measures

Predicting Customer Behaviors

Facilitates forecasting the likelihood of customers' purchases

Customer Defection Analysis

Finding methods to retain customers

CRM Program 4

Integrate existing CRM applications

CRM Program 2

Involve CRM users from outset

Relationship Marketing (Permission Marketing) (2)

Mobile marketing and QR codes

Event Based Marketing

Offer the right products and services to customers at the right time. Offer individual promotions tied to specific events.

CRM Program 6

Providing CRM training for all users

Churn Reduction

Reducing customer defections

Customer Data Privacy

Rules and laws regarding invasion of privacy include Patriot Act in the US and Internet Privacy Law in the EU.

Cross Selling (1)

Selling additional products as the result of an initial purchase.

Sales Activity Management

Tool offering sales reps a guided sequence of sales activities.

Clickstream

Tracking how a customer navigates a website can help tailor a website's images, ads or discount based on past usage of the site.

Sales Force Automation (SFA)

Used for documenting field activities, communications with the home office, and retrieving sales history in the field.

Website Self-Service

Web sites act as support mechanisms for call centers. Customers can access their account information, operating hours, contact information, etc.

5% : 75%

_____ improvement in customer retention can result in a _____ increase in profits

CRM

building and maintaining profitable long-term customer relationships

Transaction Elements

order lead time, the order processing capabilities and the distribution system accuracy.