Supply Chain Chapter 11
Activity
Customer Service as an ___________: Customer service is a particular task that a firm must accomplish to satisfy the customer's needs. Order processing, billing and invoicing, product returns, and claims handling are all typical examples of the customer service _________.
Surveys Direct Phone Calls Database
Customers being given opportunities to provide feedback about product(s), service(s), the organization, etc. This can be done through ________, questionnaires and ______________ to customers asking them their opinions. Decisions have to be made regarding how to capture the data, and how to analyze the information so you can use it productively going forward. It is of very little value until it can be analyzed and acted upon. Most companies will need some type of a ____________ to manage the data.
Knowledge Management
Enables quick decision making, better customer service, and a better-equipped and happy sales staff
Good suppliers themselves
Just as companies must create methods for finding and developing good suppliers, companies must create methods for becoming and staying ______________________________.
Call Centers
Links an organization and its customers together. It is a facility housing personnel who respond to customer queries. These personnel may provide customer service or technical support. It gives customers quick access to the information they want and enhances the customer-to-business relationship. Help continuously monitor customer service parameters in an effort to gauge performance and improve quality and efficiency. By utilizing these, the company's internal resources can be freed up to focus on the company's core competencies
Post Transaction
A customer service element Occur after the sale Includes warranty repair capabilities, complaint resolution, product returns, operating information, etc.
Transaction
A customer service element Occur during the sale Includes the order lead time, the order processing capabilities, the distribution system accuracy, etc.
Customer Service
The act of taking care of the customer's needs by providing and delivering professional, high quality service before, during, and after the customer's requirements are met.
Establish Performance Measures
The fifth step to a successful CRM Program This allows the firm to: -Determine if objectives have been met -Compare actual to planned variance (take action to correct issues)
Field Service Management
Involves setting up the company operations to allow customers to interact directly with the company's service personnel. Customers can call the service people directly, and make an appointment with the service person to come out to service the product. Since customers are communicating directly with product specialists for service issues, it is more likely that the right diagnosis can be made quickly, which will help to ensure customer satisfaction.
Target Marketing
A key tool and component of CRM A segment of customers a company has decided to aims its marketing efforts and ultimately its products and/or services towards. A well-defined target market is the first element of any marketing strategy Is usually much more effective than mass marketing, as it allows the company to focus efforts on marketing to those customers most likely to respond. It is a more efficient use of the company's resources and it reduces the chances of being a nuisance to those potential customers who do not fit the targeted criteria. Using e-mail or direct mail saves labor and postage, and reduces the chances of being a nuisance
Relationship Marketing (Permission Marketing)
A key tool and component of CRM An approach to selling products and services in which a customer explicitly agrees in advance to receive marketing information. Customers self-select the type and time of communication they want. —Example: An "opt-in" e-mail, where a potential customer signs up in advance for information about certain products or services. The customer is giving permission to the company to provide them with marketing and sales information. Is about building an ongoing relationship of increasing depth with customers Does not typically create immediate sales, but rather grabs a customer's attention and preserves a business relationship.
satisfaction loyalty retention growth personalized
A successful well-designed CRM program can provide companies with many improvements and benefits. Some of the most important are: 1.Increased customer ___________ 2.Increased customer _________ and ___________ 3.Faster responses to customer inquiries. 4.Increased revenue. 5._________ of the customer base through referrals. 6.A simplified and more cost effective marketing & sales process. 7.Increase sales effectiveness. Closing sales faster. 8.Increased sales through cross-selling and/or up-selling. 9.Access to updated customer information and ___________ interactions. 10.Automation of repetitive tasks.
Social Media
A trend in CRM Creating and cultivating virtual communities around product or brand is a powerful way to engage consumers
Customer Data Privacy
A trend in CRM Rules and laws regarding invasion of privacy include Patriot Act in the US and Internet Privacy Law in the EU
Cloud Computing
A trend in CRM ala carte and on demand offerings accessed via web browser Changing the cost structure of CRM applications
intermediate customers
Because many companies do not sell their products directly to end-product consumers, companies may also need to train and certify that their ______________________ are able to adequately represent their company's products.
Acquire Retain Meet the Changing Expectations
Companies need a Customer Relationship Management program in order to: 1.___________ New Customers 2.___________ their Existing Customers 3._______________________ of Customers -Due to things like as social and demographic factors, economics, competitor's products and marketing efforts, and other market experiences.
Philosophy
Customer Service as a __________: Customer service is a company-wide commitment to providing customer satisfaction by placing emphasis on quality and quality management.
Performance Measure
Customer Service as a __________________: Customer service is a category of performance measures, such as the percentage of orders delivered on time and complete, the number of orders processed within acceptable time limits, etc.
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
Involve CRM users from outset
The second step to a successful CRM Program Employees should understand how it affects their jobs -Create a project team with members from all affected organizational areas. -Test with a pilot application
Provide CRM Training for All Users
The sixth step to a successful CRM Program -Provide and require training for all of the initial users and then provide training on an ongoing basis as applications are added -Training can also help convince key users like sales, call center, and marketing personnel of the benefits and uses of CRM applications
Select the right application and provider
The third step to a successful CRM Program Find an appropriate application and determine the extent of customization -Visit trade shows, read trade literature, hire consultant, etc. -Compare based on performance, security, reporting capabilities, system availability, etc.
Sales Force Automation (SFA)
Used for documenting field activities, communications with the home office, and retrieving sales history in the field.
right product right quantity right quality right place right time right customer right costs
What consists of the "Seven R's Rule", creating the perfect order?
Pre Transaction
A customer service element Precede the sale Includes customer service policies, the mission statement, the organizational structure, system flexibility, etc.
Customer Lifetime Value (CLV)
A key tool and component of CRM A prediction of the net profit attributed to the entire future relationship with a particular customer. Some customers are worth a lot more than others, and identifying your key or top tier customers can be extremely valuable to your business. Is an important metric for determining how much money a company is willing to spend on acquiring new customers and how much repeat business a company can expect from particular customers.
Predicting Customer Behaviors
A key tool and component of CRM If a company is selling products and services to customers, they can also collect customers buying history, preferences, and trend information, which could then be used to predict customer buying behaviors going forward. This information could also be used to determine how effective marketing, advertising and promotions have been in the past, and whether these practices should be continued or altered. This predictive information could be used to create a more accurate forecast and a more effective marketing and sales budget.
Event Based Marketing
A key tool and component of CRM Is a form of marketing that identifies key events in the customer and business lifecycle. When an event occurs a customer specific marketing activity is undertaken. An event can be something basic and predicted, like the end of a contract, a holiday, a season, e.g., Memorial Day, 4th of July, Halloween, "Black Friday", "Cyber Monday", Christmas, etc., or something more detailed and personal, like a birthday, a marriage, or a graduation. Is a more personalized form of marketing which can help to form personal connections with the customers.
Churn Reduction
A key tool and component of CRM Is all of the efforts companies develop to stop losing customers to the competition 5% improvement in customer retention can result in a 75% increase in profits
Up Selling
A key tool and component of CRM Persuading a customer to buy a more expensive item or upgrade a product or service to make the sale more profitable. It also involves selling the customer extra features or add-ons to the product they are already buying or considering. Example: "Would you like to super-size your order?"
Segmenting Customers
A key tool and component of CRM The practice of dividing a customer base into groups of individuals that are similar in specific ways relevant to marketing. In simple terms, grouping customers to create specialized communications about products. There are many different ways to group customers, e.g., by demographics, income, geography, buying preferences, etc. Allows a company to zero in on a particular population of customers to sell a specific product, or to define a specific product(s) for a particular segment of customers. If a company can identify different segments of customers, they can potentially be more efficient and effective in the use of their resources by tailoring programs and initiatives for each segment.
Customer Defection Analysis
A key tool and component of CRM The process of analyzing the customers who have stopped buying to determine why. "Finding a new customer costs 5 - 10 times as much as keeping an existing customer" Goes hand in hand with churn reduction
Personalizing Customer Communications
A key tool and component of CRM Understanding customer behaviors and preferences, allows a firm to customize communications aimed as specific groups of customers and is likely to result in greater levels of sales. When a company communicates with their customers they need to use the customer's "language" and communicate with them in a meaningful way. Communication that is personalized sends a message to the customer that the company cares about them. It is a powerful way to differentiate the company from its competitors and it helps to build customer loyalty. -Clickstream: tracking how a customer navigates a website can help tailor a website's images, ads or discounts based on past usage of the site.
Cross Selling
A key tool and component of CRM When a company sells an additional related or complementary product or service to an existing customer after the initial purchase. Example: "Would you like fries with that?" —Example: If you're buying an item on Amazon.com, you may be shown other similar items to the one you are looking at, or companion products to the item that you are considering.
valued satisfaction and loyalty
A successful CRM program is both simple and complex: It is simple in that it involves training users within the company to make customers feel __________. It is complex in that it also means finding affordable ways to identify potentially thousands, if not millions, of customers and their needs, and then designing customer contact strategies geared toward creating customer ______________________ among your segments of customers.
Strategically Significant
CRM is not for every customer. Some customers don't want to be committed to every brand and/or relationship. Relationships should be built with ___________________ customers that are likely to provide the most value for the effort.
Small
Loyal customers are the source of most profits, and a relatively _______ percentage of those customers may generate most of the profits for the company.
Website Self Service
Portals for customers to access their account information, check operating hours, ask questions, see product information, find contact information, check on orders, get shipping information, etc Customers can put their own information into the system which avoids having the company take the time to do it, and also potentially eliminates errors. Customers can edit and modify the information accordingly. Customer can opt into or out of future sales, subscriptions, corporate information, emails and other information if desired
Role Models Inspire Change
Strategically significant customers are: Customers with high life-time value i.e., customers that will constantly buy the product(s) or use the service(s) in the long-term. Customers who serve as _____________ or benchmarks for other customers. Customers who ________________ in the supplier and/or the supply chain.
Creating the CRM Plan
The first step to a successful CRM Program -Objectives of the CRM program -CRM's fit with corporate strategy -New applications to be purchased or developed -Integration or replacement of existing legacy systems -Personnel Requirements - personnel, training, policies, upgrades, and maintenance -The costs and time frame for implementation
Integrate Existing CRM Applications
The fourth step to a successful CRM Program CRM is a collection of various applications implemented over time. -Customer contact mechanisms need to be coordinated so that every CRM user in the firm knows about all of the activity associated with each customer. -Centralized database or data warehouse containing all customer information.
Future Purchases
To be successful, a company must find ways to meet its customers needs; otherwise, just as any firm would react with a non-performing supplier, the customer goes elsewhere and takes years worth of ________________ with them.
Sales Activity Management
Tool offering sales reps a guided sequence of sales activities
Customer Relationship Management (CRM)
the transformation of the people, process, and technology required to become a customer-centric organization It involves acquiring, retaining and partnering with selective customers to create superior value for both the company and the customer. It provides a means and a method to enhance the experience of individual customers so that they will remain customers for life. Putting the customer first.