Supply Chain Management Chapter 10
Relationship marketing or permission marketing
customers select the type & time of communication. Requires software & customer participation
Target marketing efforts
e-mail or direct mail saves labor & postage, reduces chances of being a nuisance
Customer Defection Analysis
finding methods to retain customers
Predicting Customer Behaviors
firms forecast likelihood of customers' purchases
What's the "Seven Rs Rule" consist of?
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
Clickstream
how a customer navigates a Web site
What does CRM stands for?
Customer Relationship Management
Post-transaction elements
- occur after the sale & include warranty repair capabilities, complaint resolution, product returns, & operating information
Pre-transaction elements
- precede the sale (e.g., customer service policies, the mission statement, org. structure, & system flexibility)
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)
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
Sales Force Automation (SFA)
Used for documenting field activities, communications with the home office, & retrieving sales history
Transaction elements
occur during the sale & include the order lead time, the order processing capabilities & the distribution system accuracy
Event based Marketing
offer the right products & services to customers at the right time
Churn reduction
reducing customer defections
What does CRM means ?
It focus on customer requirements, then delivering products and services in a manner resulting in high levels of customer satisfaction
Customer data privacy
Rules & laws regarding invasion of privacy include Patriot Act in the US and Internet Privacy Law in the EU
Sales Activity Management
Tool offering sales reps a guided sequence of sales activities
Customer Value Determination
verify the customer lifetime value for individuals or segments
Personalizing Customer Communications
Understanding customer behaviors & preferences, firms customize communications
Website Self-Service
Web sites act as support mechanisms for call centers. Customers can access their account information & operating hours, contact information, etc.
CRM must still include what?
talking to customers, understanding their behavior and their requirements, and then building a system to satisfy those requirements
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
Cloud Computing (Software as a Service)
Ala carte & on demand offerings accessed via web browser Changing the cost structure of CRM applications
