Customer Relationship Management
Post-Transaction Elements
warranty repair capabilities, complaint resolution, product returns, and operating information.
CRM Plan
(1) Objectives of the CRM program (2) CRM's fit with the corporate strategy (3) New applications to be purchased or developed (4) Integration or replacement of existing legacy systems (5) Personnel requirements (6) The costs and time frame for implementation
Automated Sales Force Tools
(1) Sales Force Automation (SFA) (2) Sales Activity Management (3) Sales Territory Management (4) Lead Management (5) Knowledge Management
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 cost
Perfect Order
(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 cost (8) The right documentation
5
"Finding a new customer costs _____ times as much as keeping an old customer"
Cloud Computing (Software as a Service)
(1) Ala Carte and on demand offerings accessed via-web browsers (2) Changing the cost structure of CRM applications
Call Centers (Customer Contact Centers)
(1) Categorize calls (2) Determine average resolution time (3) Increase customer satisfaction levels (4) Provide input to forecast future demand (5) Improve the productivity of the overall Staff
Trends in CRM
(1) Customer Data Privacy (2) Social Media (3) Cloud Computing (Software as a Service)
simple : complex
A successful CRM program is both _____ and _____
Social Media
Creating and cultivating virtual communities around product or brand is a powerful way to engage customers.
CRM Program 1
Creating the CRM Plan
Customer Value Determination
Determine customer lifetime value so that appropriate communications, benefits, services or policies can be established for each customer segment
Target Marketing Efforts
E-mail or direct mail saves labor and postage, reduces chances of being a nuisance.
Cross Selling (2)
E-mails from Amazon.com describing other products bought by people who purchased one or more of the items you just purchased.
Segmenting Customers
Grouping customers to create specialized communications about products.
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 Program 3
Select the right applications and provider
Personalizing Customer Communications
Understanding customer behaviors and preferences, allows a firm to customize communications aimed at specific groups of customers and is likely to result in greater levels of sales.
Pre-Transaction Elements
customer service policies, the mission statement, organizational structure, and system flexibility.
Complex
CRM is _____ in that it also means finding affordable ways to identify (potentially millions of) customers and their needs
Simple
CRM is _____ in that it involves training users and treating customers right, to make them feel valued
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.
Relationship Marketing (Permission Marketing) (1)
Customers self-select the type and time of communication they want. Requires software and active customer participation.
Knowledge Management
Enables quick decision making, better customer service, and better-equipped and happy sales staff.
CRM Program 5
Establish performance measures
Predicting Customer Behaviors
Facilitates forecasting the likelihood of customers' purchases
Customer Defection Analysis
Finding methods to retain customers
CRM Program 4
Integrate existing CRM applications
CRM Program 2
Involve CRM users from outset
Relationship Marketing (Permission Marketing) (2)
Mobile marketing and QR codes
Event Based Marketing
Offer the right products and services to customers at the right time. Offer individual promotions tied to specific events.
CRM Program 6
Providing CRM training for all users
Churn Reduction
Reducing customer defections
Customer Data Privacy
Rules and laws regarding invasion of privacy include Patriot Act in the US and Internet Privacy Law in the EU.
Cross Selling (1)
Selling additional products as the result of an initial purchase.
Sales Activity Management
Tool offering sales reps a guided sequence of sales activities.
Clickstream
Tracking how a customer navigates a website can help tailor a website's images, ads or discount based on past usage of the site.
Sales Force Automation (SFA)
Used for documenting field activities, communications with the home office, and retrieving sales history in the field.
Website Self-Service
Web sites act as support mechanisms for call centers. Customers can access their account information, operating hours, contact information, etc.
5% : 75%
_____ improvement in customer retention can result in a _____ increase in profits
CRM
building and maintaining profitable long-term customer relationships
Transaction Elements
order lead time, the order processing capabilities and the distribution system accuracy.