Customer Relationship Management

According to multiple studies, over the past 5 years the cost of acquiring a customer has increased by

50 percent

What is a SQL or sales qualified leads.

A SQL is a lead that has been qualified and is ready to make a purchase.

What does customer interaction encompass?

All the communication that takes place between a customer and an organization. This includes social media, email, traditional mail, direct marketing, and many other methods of communication.

What are some ways you can acquire new customers through customer Acquistion?

Customers can be acquired using a number of approaches including social media, search, affiliate, referral, and email marketing. Organizations often track customer acquisition using a lead generation or acquisition funnel.

What is customer acquisition?

consists of the processes and strategies an organization uses to obtain new customers.

What are some of the current privacy laws for data?

•The Federal Trade Commission Section 5: according to the FTC, the government has the authority to prevent unfair or deceptive trade practices •The Gramm Leach Bliley Act: this is a US law that governs personal information collected by financial institutions •Fair Credit Reporting Act: this act regulates the gathering and use of credit reporting information •California Consumer Privacy Act (CCPA): California law that mandates disclosure about data collection policies and gives individuals the ability to access, correct, and delete personal information •Europe's General Data Protection Regulation (GDPR): this governs data protection and privacy in the European Union and European Economic Area. Additionally, it governs the transfer of personal data outside the EU

How do businesses use CRM analytics to extract information from a customer database?

•customer segmentation, customer value and profitability, personalization, and predictive modeling

How can CRM systems improve customer service?

•customer service is improved with CRM because information about the customers' purchases and interactions are stored and easily accessed for use when needing to troubleshoot any issues

What is a lead generation funnel?

•starts with gaining customer interest. Marketing activities driven by CRM can help to stimulate interest •next, the organization attempts to gain interest about a product or service. After interest comes desire •CRM software and the analytics it provides are used to create the need, want, or desire to purchase a product or service •the last phase of the funnel is action, which is also known as purchase. In this phase the customer pays for the product or service

What is customer Profitability?

the amount of profit an organization makes from selling products or services to a customer or group of customers over a specified time period.

Cambridge Analytica Scandal

• Claimed to be for "Academic Research" - but was able to take information from your friends list (which the user did not know)• Violation of FB policy• Used Psychographics from survey + demographics from Facebook to create a powerful database that was sold to the Trump Administration (and probably others as well)• They were able to use these two things as well as voting profiles to target ads for President Trump's campaign

One of the benefits of using a CRM system is that data can be analyzed and provided to assist in measuring customer equity (CE), what and how do you do this?

•CE is the value that the future lifetime revenue an organization's customers will generate minus customer acquisition costs and customer retention costs •this can be either an individual or collective measure, depending on how the data is structured •an organization with a high customer equity value often has higher revenues and is valued higher than a company with a low customer equity value An example of a brand that is like this is Apple.

As predicted by the Gartner IT Services company what will be the single largest revenue area of spending in enterprise software by 2021?

customer relationship management systems

What is a target market?

is the group of existing and potential customers that an organization believes they can sell their products or services to. An organization's target market shares common characteristics including geographic location, demographic and psychographic backgrounds, and income level.

What is a marketing segmentation?

segmentation is the process of dividing a market of both potential and existing customers into groups (i.e., segments) based on a variety of characteristics including both demographic and psychographic types of data. •segmented groups share common traits, interest, needs, wants, and geographic location

What is prospecting?

the process of locating potential customers for a product or service. Prospecting involves identifying potential customers, designing effective marketing strategies to reach them, and then converting them from prospect to customer

What is the biggest threat to storing data and how does data get exposed?

•the reason these data breaches occurred was due to misconfigured databases and services •data breaches remain one of the biggest threats to storing customer information

In what ways does CRM use a target market to flush out customers?

•these tools can be used to recognize the precise market for a specific product or service and how best to reach that market. •a variety of both online and traditional media strategies are used •these systems collect data from customer transactions which can then be analyzed using analytical tools provided in the platform to identify trends as well as demographic and geographic information •analysis of customer characteristics is also an important part of the process CRM software can identify where customers are located, what they buy, how often they buy, and even the purpose of the purchase. Often this data is used to create an ideal customer profile which identifies the highest revenue customers.

What are some of the rules in place in the United States when a data breach occurs?

Must alert government within 72 hours. Many organizations clearly communicate data subjects' rights in the privacy policies posted on their websites and in their marketing collateral. Data subjects' rights include the right to be informed, access to data, erasure, and portability.

Share of customer, also known as share of wallet is what?

, focuses on getting as much business as possible from fewer customers. •the idea is that it costs less money to retain existing customers than it does to acquire new ones •a high share of wallet means that the existing customers are spending more to purchase products or services from one organization than they are from direct and indirect competitors •businesses should try to capture more business from their existing customers which often leads to higher gross margins and more profit.

What is the most difficult stage of the sales process?

Sales prospecting according to 42% of sales professionals.

When selecting a customer segmentation tool Salesforce.com has identified the following four factors to consider?

1.Integration - Customer segmentation software should be able to efficiently link data from a variety of sources. 2.Data collection and analytical tools - Data access, ease of use, and ease of data interpretations are important considerations. 3.Flexibility and scalability - The solution should work well in the current environment, but also be scalable should growth occur. 4.Cost - The overall cost of the tool should be considered. It is important to use a tool that provides enough information without spending more money than is needed to accomplish desired results.

According to Salesforce.com, segmented marketing campaigns have been shown to?

760% increase in revenue

How do businesses use CRM and use data mining to support business CRM analytics?

Businesses use CRM analytics in the following ways: •Customer segmentation is where customers are grouped into homogenous segments so behavior can be more easily analyzed •Customer value and profitability includes the identification of which customers create the highest revenue •Personalization allows for customized marketing based on individual customer behavior •Predictive modeling uses prior information to assist in the determination of the success or failure of future endeavors

What is a customers lifetime value(CLV) and how is it determined?

CLV is the total amount an existing customer will spend on an organization's products or services over that customer's lifetime. Organizations use this metric to determine how much they should spend to acquire new customers versus how much they should spend to retain existing customers. Understanding CLV assists organizations to develop business strategies designed to get new customers and keep existing customers, while maintaining acceptable profit margins.

How is customer Profitability calculated?

CP is calculated by subtracting the costs associated with sales and engagement from the revenue earned from the sales of products or services. CRM systems are used to measure customer profitability or if a customer is unprofitable.

How is CRM software used in the lead customer generation funnel?

CRM software is used to track purchases and record purchase information. CRM software systems track prospective and current customers through the various stages of the funnel. •CRM software supports businesses in identifying which leads are MQL and which are SQL so that organizations can properly engage both groups.

How is CRM analytics a form of online analytical processing (OLAP)?

OLAP is the technology behind many Business Intelligence (BI) applications and is used for data discovery and analysis including predictive what-if analysis, report generation, and forecasting.This information is gathered from point of sale and e-commerce technology as well as through customer interactions.

What is the most popular CRM and why is tracking customer acquisition so important?

The world's most widely used CRM platform is Salesforce.com. Salesforce.com provides a variety of analytical tools including monitoring, tracking, and trend analysis of customer acquisition. According to Salesforce.com, only 58% of marketers track customer acquisition rates. It is important for organizations to track this metric because it allows an organization to see how effectively their marketing efforts are leading to actual sales.

What is customer relationship management (CRM)?

These systems assist organizations to synchronize business operating units relating to customer interaction. Customer interaction includes the marketing, sales, and service areas of the organization.

What is marketing segmentation information used for?

This information is often used to create better targeted marketing strategies designed to increase sales and customer retention.

What are a number of popular prospecting tools that can be integrated with CRM?

Zoominfo-This software uses the world's most comprehensive Business-to-Business (B2B) database to generate lists and information on potential prospects. LinkedIn Sales Navigator - This system includes CRM and SSO (single sign-on) integration and utilizes more than 630 million connections on the site to generate prospects and leads. Clearbit Prospector - This system generates targeted prospect lists using a database of over 200 million contacts from 20 million companies. 85 different data points are utilized to filter out the best prospects.

What is a marketing qualified lead or MQL?

•A MQL is a lead (i.e., a prospective customer) who has an identified interest in a brand or product/service offering. •MQLs have intentionally engaged with a product or service by performing actions such as downloading content from a site, repeated visits to a website, and adding materials to an online shopping cart.

How do businesses Use CRM Systems to Identify Current Customers?

•Customer surveys - Surveys should be utilized to collect feedback from customers. •CRM systems can be used to design, share, and collect data from a variety of social media channels •Social media - Organizations can leverage various social media platforms and integrate them within a CRM platform. •Monitor procurement methods - Anticipating preferred shopping methods, customer motivation, purchase frequency, and spending habits allows businesses to be more profitable. •Analytics - The analytics provided by the CRM platform can be used to uncover trends in the data that is collected about customers.

What strategies enable better data collection?

•End-user needs - CRM data collection can be streamlined by using analytics to determine end-user needs •Standardized data collection processes - CRM analytics can provide information about where data erosion occurs and how processes can be improved to minimize it •Demonstrate the value of CRM - CRM analytics can provide insight into how customers and members of the organization interact with the CRM system •this information can be used to design data collection strategies that encourage interaction and useA better understanding of users' unique preferences and activities can help to guide data collection. Analytics can identify when data errors occur and give insight into what data management processes can be improved to prevent this from occurring.

What are the Common types of customer data collected in a CRM system?

•Identity data - this is also known as demographic data and includes the customer's name, address, gender, date of birth, phone number, and email address •Quantitative data - this refers to how the customer interacts with the business and includes transaction history, online activity, customer service history, and inbound or outbound communications •Qualitative data - this refers to a customer's feelings and reasoning about a product or service. It includes attitudes (ratings and perceived value), opinions, and motivation (reasons for a purchase) •Descriptive data - this is additional demographic data about a customer and includes family status, lifestyle, education, and the customer's career

What should the design of a CRM strategy include to be meaningful in customer interaction:

•Monitor customer interactions - using CRM to identify what methods of communication are most engaging for customers is important •Customers as individuals - CRM is used to ensure each customer receives an individual contact record every time the customer enters a company's database •Automation - CRM is used to generate automatic responses to customer interactions, scheduling of tasks related to customers, and customer communications •Customized communication - CRM can ensure that messages are properly matched to the customer

What is qualifying potential customers?

•Qualifying a potential customer occurs when an organization determines whether or not an individual or business makes sense to pursue as a potential customer.

qualified sales leads through CRM result in?

•Research shows that qualified sales leads result in better close rates and a higher return on investment (ROI) than non-qualified leads. Many CRM software programs offer the opportunity to create customized sales funnels based on specific organizational needs and sales characteristics. Additionally, they give the user the ability to make distinctions between prospects and realistic sales opportunities. Pursuing unqualified leads can be costly to a company because spending marketing dollars to pursue them often does not succeed.

How can you prevent CRM data breaches?

•Server security - if data is stored on physical on-site servers, it is important to take security measures to protect data and can be accomplished by ensuring firewalls and routers are secured and that all software is up to date •Proper CRM administration - CRM systems can be compromised due to a lack of proper CRM administration and It is important to make sure staff who interact with the CRM system are properly trained and that managed access and access-levels are in place •Consistent updates to CRM software - CRM systems and software constantly are updated to help prevent data breaches as software that is not consistently updated is potentially at risk for data breaches

So how can CRM analytics be used to help reduce the likelihood of product failure?

•Viability - CRM analytics can be used to test the viability of products or services •Product and/or service measurements - CRM systems can be designed to capture information about what features of a product or service are working and what features are causing problems •User experience - CRM systems can be designed to capture data about why users are buying a product or service and how they are using it •Product development - CRM analytics often give insights that foster innovationThis viability check results from the analysis of consumption trends and usage behaviors. Product and/or service measurements-Analytics around this data can provide insights about what features to include or improve in a new product or service. User experience-Analytics can be used to create more informed decisions about usage trends and to help decision makers capitalize on growth or emerging areas. Product development-Quantitative analytics coupled with qualitative information about how users think and feel provide an all-inclusive view of current products and services. This information can be used by decision makers to identify strong areas and potential growth areas.