Customer Relationship Management

How CRM is done:

- Communicating with customers - Understanding their behavior and their requirements - Building a system to satisfy those requirements

____ & ____ go hand-in-hand to determine why customers leave and finding ways to retain them

- Customer Defection Analysis - Churn Reduction

Customer Relationship Management is the ____ required to be a ____

- transformation of the people, process, and technology - customer-centric organization

Knowledge Management

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

Customer Service as a Performance Measure

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.

Customer Service as a Philosophy

is a companywide commitment to providing customer satisfaction by placing emphasis on quality and quality management.

A Call Center is

is a facility housing personnel who respond to customer queries. These personnel may provide customer service or technical support.

Customer Service as an Activity

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 activity.

A successful CRM program is both ___ and ___:

- simple - complex

Measuring Customer Satisfaction can be done thru (3)

- surveys - questionnaires - direct phone calls

CRM is done by: (2)

- Focusing on customer requirements - Delivering products and services in a manner resulting in high levels of customer satisfaction

Strategically significant customers are that: (3)

- Have high life-time value (i.e., customers that will constantly buy the product(s) or use the service(s) in the long-term.) - Serve as role models or benchmarks for other customers. - Inspire change in the supplier and/or the supply chain.

____ are the source of most profits, and a ____ percentage of those customers may generate ___ for the company.

- Loyal customers - a relatively small - most of the profits

CRM involves __(3)__ to ____

- acquiring selective customers - retaining selective customers - partnering with selective customers - to create superior value for both the company and the customer.

If a company is selling products and services to customers, they can also collect customers (3)

- buying history - preferences, - trend information,

A CRM program is ___ in that it also means finding affordable ways to ___, and then designing ___ geared toward ___ among your segments of customers.

- complex - identify potentially thousands, if not millions, of customers and their needs - customer contact strategies - creating customer satisfaction and loyalty

Understanding customer behaviors and preferences, allows a firm to ___ aimed as specific groups of customers and is likely to result in ___

- customize communications - greater levels of sales

Segmenting Customers is the practice of _____ relevant to ____

- dividing a customer base into groups of individuals that are similar in specific ways - marketing.

Because many companies ____, companies may also need to train and certify that their ____ are able to adequately represent their company's products.

- do not sell their products directly to end-product consumers - intermediate customers

If a company can identify different segments of customers, they can potentially be more ____ in the use of their resources by ___ for each segment

- efficient and effective - tailoring programs and initiatives

Event based marketing is a form of marketing that ____ and is a more ___

- identifies key events in the customer and business lifecycle. - personalized form of marketing

To be successful, a company must find ways to ____; otherwise, just as any firm would react with a non-performing supplier, ______

- meet its customers needs - the customer goes elsewhere and takes years worth of future purchases with them

Post-transaction elements ___ the sale and includes

- occur after the sale - Includes warranty repair capabilities, complaint resolution, product returns, operating information, etc.

Transaction elements ___ the sale and includes

- occur during the sale - Includes the order lead time, the order processing capabilities, the distribution system accuracy, etc.

Communication is a ____ and it helps to___

- powerful way to differentiate the company from its competitors - build customer loyalty.

Pre-transaction elements ___ the sale and includes

- precede the sale - Includes customer service policies, the mission statement, the organizational structure, system flexibility, etc.

Using e-mail or direct mail ____ , and reduces the chances of being a ___

- saves labor and postage - nuisance

A CRM program is ____ in it involves training users within the company to ___

- simple - make customers feel valued.

6 Steps to a Successful CRM Program

1) Creating the CRM Plan 2) Involve CRM users from Outset 3) Select the Right Application and Provider 4) Integrate Existing CRM Applications 5) Establish Performance Measures 6) Providing CRM Training for All Users

Companies need a Customer Relationship Management program in order to: (3)

1. Acquire new customers 2. Retain their existing customers 3. Help meet the changing expectations of customers

Some of the most important benefits of CRM are:

1. Increased customer satisfaction. 2. Increased customer loyalty and retention 3. Faster responses to customer inquiries. 4. Increased revenue. 5. Growth 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 personalized interactions. 10. Automation of repetitive tasks.

the 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 costs

Customer Lifetime Value (CLV)

A prediction of the net profit attributed to the entire future relationship with a particular customer.

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 is not for every customer because:

Some customers don't want to be committed to every brand and/or relationship.

Customer Defection Analysis

The process of analyzing the customers who have stopped buying to determine why.

Sales Activity Management

Tool offering sales reps a guided sequence of sales activities

Sales Force Automation (SFA)

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

Cross-selling is when

a company sells an additional related or complementary product or service to an existing customer after the initial purchase

Relationship Marketing or Permission Marketing is when

a customer explicitly agrees in advance to receive marketing information

Target Marketing is a segment of customers a company has decided to ____

aim its marketing efforts and ultimately its products and/or services towards

Churn Reduction is

all of the efforts companies develop to stop losing customers to the competition

Companies must create methods for ___

becoming and staying good suppliers themselves

This predictive information could be used to ___ and a more effective marketing and sales budget.

create a more accurate forecast

Target Marketing is a more

efficient use of the company's resources

Measuring Customer Satisfaction is customers being given ____

opportunities to provide feedback about product(s), service(s), the organization, etc.

Up-selling involves

persuading a customer to buy a more expensive item or upgrade a product or service to make the sale more profitable

Relationships should be built with ____ that are likely to provide the most value for the effort.

strategically significant customers

Performance measures are often designed around satisfying ____

the Seven R's

Churn

the process of customers changing their buying preferences because they find better or cheaper products and services elsewhere.

CRM is a means and a method to enhance the experience of individual customers so ____

they remain customers for life

Field Service Management involves setting up the company operations to allow customers____

to interact directly with the company's service personnel.

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.

What do Call Centers do? (6)

§ Can categorize calls § Determine average resolution time § Increase customer satisfaction levels § Provide input to forecast future demand § Improve the productivity of the overall staff § May be in-house or outsourced