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