Chapter 10: Customer Relationship Management

Mobile Marketing

An advertising technique that places advertising messages on mobile phones

QR codes (quick response)

A form of mobile marketing that involves the use of camera function on a smart phone and installing a QR code reader on the phone

Event Based Marketing

A marketing strategy that offers the right products and services to customers at just the right time

Current and future profitability

Customer lifetime value is used to segment customers based upon their...

Call Centers

Customer service departments that integrate all of the methods customers can use to contact a business, including telephone, mail, comment cards, email, and website messages and chat rooms

Customer Defection Analysis

Information that analyzes why customers stop using a particular business.

Wasted money and disgruntled customers

Multiple stand-alone CRM applications throughout the company can result in...

Segment Customers

Placing customers in a behavioral class, such as males/females, age brackets and profitability, so as to better design marketing campaigns for each segment.

Sales Territory Management Systems

Software applications that allow sales managers to obtain current information and reporting capabilities regarding each salesperson's activities on each customer's account, total sales in general for each sales rep, their sales territories and any ongoing sales initiatives.

Sales Force Automation

Software products used for documenting field activity, communicating with the home office, and retrieval of sales history and other company specific documents in the field.

Ease of use, personal value creation, continuous connectivity, and small data

The four emerging trends in CRM today are...

Customer Service

The provision of information, help, and/or technical support to customers in a way that meets or exceeds customer expectations.

Clickstream

A record of the items that a specific customer clicks on when visiting a website

Knowledge Management Systems

A system that is able to capture the accumulated knowledge of experienced sales staff and other skilled personnel if they leave an organization

Lead Management System

A tool that allows sales reps to follow prescribed sales tactics when dealing with sales prospects or opportunities, to aid in closing the deal with a client.

Relationship Marketing

An extension of target marketing; letting customers select the type and time of communication with organizations

Perfect Order

An order that did arrive on time, complete and damage free.

Customer Lifetime Value (CLV)

Assigning a profit figure to each customer by summoning the margins of all the products and services purchased over time, less the cost of marketing to and maintaining that customer, such as the cost of direct mail and sales calls and the service cost for each customer. Additionally, the firm forecast future purchased quantities, profit margins, and marketing cost for each customer, discounts these back to the current date and then adds this projected profit quantity to the current profit amount. Also known as customer value or customer profitability.

Customer Defection Analysis

CRM allows organizations to indenting which customers have stopped purchasing products or services so that it can target those former customers for future promotions and/or perhaps investigate why they stopped purchasing in the first place. This CRM attribute is called:

Data Warehousing

Compatible CRM modules are linked to one centralized database containing all customer information. This is an example of...

Cross-selling

Purchasing that occurs when customers are sold additional products as the result of an initial purchase

Sales Activity Management System

Software tools that give sales personnel a sequence of activities guiding them through their sales processes with customers. These standardized steps assure the proper sales activities are performed and also put forth a uniform sales process across the entire organization.

Target Marketing

Targeting specific customer segments, with respect to promotional efforts

Small Data

The data that was around before big data, or data that is small enough for human comprehension

Customer Churn

The rate at which customers leave or stop using a firm

Knowledge management system

Which CRM tool can lead to better customer service by giving sales personnel better access to information on contracts, clients, competitors, regulatory issues and laws, sales promotions, and previous client correspondence?

Seven Rs Rule

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.