Supply Chain Chapter 11: Customer Relationship Management

Seven R's Rule

The right - Customer - Costs - Product - Place - Quantity - Quality - Time + the right documentation = the Perfect Order

Permission marketing is about building an ___________________ of increasing depth with customers.

ongoing relationship

CRM involves acquiring, retaining and _______________________ to create superior value for both the company and the customer.

partnering with selective customers

Event-based marketing is a more __________________________ which can help to form personal connections with the customers.

personalized form of marketing

CRM is also known as a ____________ of putting the customer first.

philosophy

Cross-selling occurs when a company sells an additional ______________________ product or service to an existing customer after the initial purchase.

related or complementary

Customers ___________ the type and time of communication they want.

self-select

If a company can identify different segments of customers, they can potentially be more efficient and effective in the use of their resources by ____________________________ for each segment.

tailoring programs and initiatives

Some customers don't want to be committed to every brand and/or relationship. T or F?

T

If a company is selling products and services to customers, they can also collect customers ____________, ____________, and ________________, which could then be used to predict customer buying behaviors going forward.

- Buying history - Preferences - Trend information

Call Centers or Customer Contact Services - Can _____________ - Determine __________ - Increase ___________ - Provide ____________ - Improve _________ - May be ___________

- Can categorize calls - Determine average resolution time - Increase customer satisfaction levels - Provide input to forecast future demand - Improve the productivity of the overall staff - May be in-house or outsourced

How can companies build and maintain profitable long-term customer relationships?

- Communication - Understanding behavior - Building a system to satisfy requirements

Key tools and components of CRM

- Customer Defection Analysis - Customer Lifetime Value - Predicting customer behaviors - Personalizing communications - Segmenting customers - Target Marketing - Event Based Marketing - Relationship or Permission Marketing - Cross selling and Up-Selling

CRM is about building and maintaining profitable long-term customer relationships by __________.

- Focusing on customer requirements - Delivering products and services in a manner resulting in high levels of customer satisfaction

Website Self-Service are portals for customers to:

- Put their own info into the system - Opt into our out of sales, subscriptions

Strategically significant customers are customers:

- With high life-time value - Who are role models - Who inspire change

Why do companies need CRM?

1. Acquire new customers 2. Retain existing customers 3. Meet changing expectations

6 Steps to a Successful CRM Program

1. Creating the CRM Plan 2. Involve CRM users from Outset (Employees should understand how it affects their jobs) 3. Select the Right Application and Provider 4. Integrate Existing CRM Applications 5. Establish Performance Measures 6. Providing CRM Training for All Users

_________ is the process of customers changing their buying preferences because they find better or cheaper products and services elsewhere.

Churn

______________ is all of the efforts companies develop to stop losing customers to the competition.

Churn Reduction

____________: tracking how a customer navigates a website can help tailor a website's images, ads or discounts based on past usage of the site.

Clickstream

Trends in CRM

Customer Data Privacy Social Media Cloud Computing

_____________ is the process of analyzing the customers who have stopped buying to determine why.

Customer Defection Analysis

Not all markets and customers are equally important. T or F?

T

_______________ involves setting up the company operations to allow customers to interact directly with the company's service personnel.

Field Service Management

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

Knowledge Management

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

Lead Management

Tool offering sales reps a guided sequence of sales activities.

Sales Activity Management

_____________ is used for documenting field activities, communications with the home office, and retrieving sales history in the field.

Sales Force Automation (SFA)

Sales managers obtain information on each sales rep's activities.

Sales Territory Management

Predicted customer information could be used to create a more __________________ and a more effective marketing and sales budget.

accurate forecast

Relationship or permission marketing is an approach to selling products and services in which a customer explicitly _________________ to receive marketing information.

agrees in advance

Personalizing Customer Communications is a powerful way to differentiate the company from its competitors and it helps to ___________________.

build customer loyalty

A successful CRM program is complex in that it also means finding affordable ways to identify millions of customers and their needs, and then designing customer contact strategies geared toward creating ________________________________ among your segments of customers.

customer satisfaction and loyalty

Customer Relationship Management (CRM) is the transformation of the people, process, and technology required to become a ___________________________.

customer-centric organization

Call centers give customers quick access to the information they want and enhances the ______________________________.

customer-to-business relationship

Up-selling involves persuading a customer to buy a more _______________________ a product or service to make the sale more profitable.

expensive item or upgrade

Because many companies do not sell their products directly to end-product consumers, companies may also need to train and certify that their ______________________ are able to adequately represent their company's products.

intermediate customers

A successful CRM program is simple in that it involves training users within the company to make customers feel ______.

valued