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