Chapter 11

Key Tools and Components of CRM: Cross Selling and Up-Selling

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

Knowledge Management

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

Key Tools and Components of CRM: Event Based Marketing

Event based marketing is a form of marketing that identifies key events in the customer and business lifecycle.

Field Service Management

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

6 Steps to a Successful CRM Program

1. Creating the CRM Plan 2. Involve CRM users from Outset 3. Select the Right Application and Provider 4. Integrate Existing CRM Applications 5. Establish Performance Measures 6. Providing CRM Training for All Users

Key Tools and Components of CRM

1. Predicting Customer Behaviors 2. Segmenting Customers 3. Target Marketing 4. Event Based Marketing 5. Cross Selling and Up-Selling 6. Personalizing Customer Communications 7. Relationship or Permission Marketing 8. Analyzing Customer Defection 9. Customer Lifetime Value (CLV)

Key Tools and Components of CRM: Customer Lifetime Value (CLV)

A prediction of the net profit attributed to the entire future relationship with a particular customer.

Key Tools and Components of CRM: target marketing

A segment of customers a company has decided to aim its marketing effort and ultimately its products and/or services towards. A well-defined target market is the first element of any marketing strategy

Key Tools and Components of CRM: Relationship Marketing or Permission Marketing

An approach to selling products and services in which a customer explicitly agrees in advance to receive marketing information. Customers self-select the type and time of communication they want.

Key Tools and Components of CRM: Churn Reduction

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

Post-transaction elements

Occur after the sale & include warranty repair capabilities, complaint resolution, product returns, & operating information.

Transaction elements

Occur during the sale & include the order lead time, the order processing capabilities & the distribution system accuracy.

Customer Service Elements

Pre-transaction Elements Transaction Elements Post-transaction Elements

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.

Key Tools and Components of CRM: segmenting costumers

The practice of dividing a customer base into groups of individuals that are similar in specific ways relevant to marketing.

Key Tools and Components of CRM: Customer Defection Analysis

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

Sales Activity Management

Tool offering sales reps a guided sequence of sales activities

Key Tools and Components of CRM: personalizing costumer communications

Understanding customer behaviors and preferences, allows a firm to customize communications aimed as specific groups of customers and is likely to result in greater levels of sales.

Pre-Transaction Elements

precede the sale Includes customer service policies, the mission statement, the organizational structure, system flexibility, etc.

Customer Relationship Management (CRM)

the transformation of the people, process, and technology required to become a customer-centric organization involves acquiring, retaining and partnering with selective customers enhance the experience of individual customers so that they will remain customers for life.

Key Tools and Components of CRM: Predicting Customer Behaviors

they can also collect customers buying history, preferences, and trend information, which could then be used to predict customer buying behaviors going forward.

Goals And Benefits Of CRM

1. Increased customer satisfaction. 2. Increased customer loyalty and retention 3. Faster responses to customer inquiries. 4. Increased revenue. 5. Growth of the customer base through referrals. 6. A simplified and more cost effective marketing & sales process. 7. Increase sales effectiveness. Closing sales faster. 8. Increased sales through cross-selling and/or up-selling. 9. Access to updated customer information and personalized interactions. 10. Automation of repetitive tasks.

Why Do Companies Need CRM

1. acquire new customers 2. retain their existing customers 3. help meet the changing expectations of customers