ITM- Chapter 10 - CRM

CRM step 3

Select the Right Application and Provider- Find an appropriate application and determine the extent of customization (adaptation).

Personalizing Customer Communications-

understanding customers, their behaviors, and their preferences allows firms to customize communications aimed at specific groups of customers. Clickstream, how a customer navigates a Web site can help tailor a Web site's images, ads, or discounts.

Churn reduction-

reducing customer defections.

Post transaction elements

Occur after the sale & include warranty repair capabilities, complaint resolution, product returns, and operating information.

Customer Defection Analysis-

methods to retain customers.

Cross Selling

Additional products are sold as the result of an initial purchase e.g., e-mails from Amazon.com describing other books bought by people.

Predicting Customer Behaviors

Behaviors can be predicted and firms forecast likelihood of customers' purchases.

CRM Customer Relationship Management

Building and maintaining profitable long-term customer relationships. Successful CRM programs require cultural change in many organizations, leading to strategies that are focused on cultivating long-term relationships with customers, aided by the software capabilities.

CRM step 1

Creating the CRM Plan- should include: Objectives of the CRM program, CRM's fit with corporate strategy, New applications to be purchased or developed, Integration or replacement of existing methods or legacy systems, Personnel Requirements.

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.

Knowledge Management-

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

CRM step 5

Establish Performance Measures- Measuring performance allows the firm to: Determine if objectives have been met Compare actual to planned = variance

value enhancing supplier firm

Firms must create methods for finding and developing good suppliers Firms must create methods for becoming and staying good suppliers themselves. It may be necessary for a firm to certify its intermediate customers as to their ability to adequately represent their firm's products.

Segmenting Customers-

Grouping customers in a variety of ways to create more specialized communications about their products. Target marketing efforts- e-mail or direct mail saves labor and postage, reduces chances of being a nuisance.

CRM step 4

Integrate Existing CRM Applications- CRM is a collection of various applications implemented over time. Customer contact mechanisms need to be coordinated so that every CRM application user in the firm knows about all of the activity associated with each customer.

CRM step 2

Involve CRM users from the Outset- To get acceptance of the CRM initiative, employees should understand how it affects their jobs.

Informational Scripting

Scripts to successfully guide service representatives through many types of customer problems. They do not allow for much "out-of-the-box" thinking.

Transaction elements-

Occur during the sale & include the order lead time, the order processing capabilities & the distribution system accuracy.

Event Based Marketing

Offering individual promotions tied to specific events to offer the right products & services to customers at the right time.

Pre transaction elements-

Precede the sale (e.g., customer service policies, the mission statement, organizational structure, & system flexibility).

CRM Step 6

Providing CRM Training for All Users- Provide and require training for all of the initial users and then provide training on an ongoing basis as applications are added.

Sales Territory Management-

Sales managers obtain information of each sales rep's activities (e.g., total sales per sales rep.)

Lead Management-

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

Key Components of CRM

Segmenting Customers Predicting Customer Behaviors Customer Profitability Determination Personalizing Customer Communications Automated Sales Force Tools Customer Service Capabilities Designing and Implementing a Successful CRM Program Some CRM Application Providers Future Trends in CRM

Sales Activity Management-

Tool offering sales reps a guided sequence of sales activities

Customer Privacy Capabilities-

Two important issues are ability to assure privacy and ability to minimize customer harassment.

Automated Sales Force Tools-

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

web site self service

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

Relationship marketing or permission marketing-

customers select the type and time of communication. Requires software and customer participation

Seven Rs Rule

having the right product, in the right quantity, in the right condition, at the right place, at the right time, for the right customer, at the right costs.

Call Centers

systems can now categorize all calls, determine average resolution time, and forecast future and improve the overall productivity of the staff, increasing customer satisfaction levels.