MIS Chapter 9

partner relationship management

Automation of the firm's relationships with its selling partners using customer data and analytical tools to improve coordination and customer sales.

operational CRM

Customer-facing applications, such as sales force automation, call center and customer service support, and marketing automation.

demand planning

Determining how much product a business needs to make to satisfy all its customers' demands.

Churn Rate

Measurement of the number of customers who stop using or purchasing products or services from a company. Used as an indicator of the growth or decline of a firm's customer base.

touch point

Method of firm interaction with a customer, such as telephone, email, customer service desk, conventional mail, or point-of-purchase.

just in time strategy

Scheduling system for minimizing inventory by having components arrive exactly at the moment they are needed and finished goods shipped as soon as they leave the assembly line.

employee relationship management

Software dealing with employee issues that are closely related to CRM, such as setting objectives, empolyee performance management, performance based compensation, and employee training.

Pull-based model

Supply chain driven by actual customer orders or purchases so that members of the supply chain produce and deliver only what customers have ordered.

Push-based model

Supply chain driven by production master schedules based on forecasts or best guesses of demand for products, and products are pushed to customers.

Supply chain planning system

Systems that enable a firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product.

Supply chain execution system

Systems that manage the flow of products through distribution centers and warehouses to ensure that products are delivered to the right locations in the most efficient manner.

Analytical CRM

customer relationship management applications dealing with the analysis of customer data to provide info for improving business performance.

Customer lifetime value

difference between revenues produced by a specific customer and the expenses for acquiring and servicing that customer minus the cost of promotional marketing over the lifetime of the customer relationship, expressed in today's dollars.

Bullwhip Effect

distortion of info about the demand for a product as it passes from one entity to the next across the supply chain.

Cross-selling

marketing complementary products to customers.

Supply chain

network of organizations and business processes for procuring materials, transforming raw materials into intermediate and finished products, and distributing the finished products to customers.

enterprise software

set of integrated modules for applications such as sales and distribution, financial accounting, investment management, materials management, production planning, plant maintenance, and human resources that allow data to be used by multiple functions and business processes.

Social CRM

tools enabling a business to link customer conversations, data, and relationship for social networking sites to CRM processes.