Chapter 11, Intro to Supply Chain, Rutgers

The Perfect Order

The Seven R's + the Right documentation

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

Why do companies need CRM

1.Acquire New Customers 2.Retaining their Existing Customers 3.Meet the changing expectations of Customers

Goals of CRM

1.Increased customer Satisfaction 2.Increased customer loyalty and rentention 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.

Churn Reduction

A key component of CRM the process of customers changing their buying preferences because they find better or cheaper products and services elsewhere. *all of the efforts companies develop to stop losing customers to the competition*

Target Marketing

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

Relationship Marketing or Permission Marketing

A key component of CRM §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.

Event Based Marketing

A key component of CRM §Event based marketing is a form of marketing that identifies key events in the customer & business cycle

Predicting Customer Behaviors

A key component of CRM §If a company is selling products and services to customers, they can also collect customers buying history, preferences, and trend information, which could then be used to predict customer buying behaviors going forward.

Segmenting Customers

A key component of CRM §The practice of Dividing a customer base into groups of individuals that are similar in specific ways relevant to marketing.

Customer Defection Analysis

A key component of CRM §The process of analyzing the customers who have stopped buying to determine why.

Personalizing Customer Communications

A key component of CRM §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.

Cross selling

A key component of CRM §occurs when a company sells an additional related or complementary product or service to an existing customer after the initial purchase. Example: "Would you like fries with that?"

Up selling

A key component of crm §involves persuading a customer to buy a more expensive item or upgrade a product or service to make the sale more profitable. It also involves selling the customer extra features or add-ons to the product they are already buying or considering. Example: "Would you like to super-size your order?"

Customer Relationship Management (CRM)

A philosophy of putting the customer first the transformation of the people, process, and technology required to become a Customer centric organization.

Customer Lifetime Value (CLV)

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

The Seven R's

Performance measures for customer service right product right time right cost right place right quantity right customer right condition

Customer Service Elements

Pre-transaction Elements Transaction Elements Post-transaction Elements

sales force automation

Used for documenting field activities, communications with the home office, & retrieving sales history in the field.

Strategically Significant Customers

customers that are likely to provide the most value for the effort. Customers with high lifetime value, serve as role models, and inspire change

Call Centers

links an organization and its customers together. It is a facility housing personnel who respond to customer queries. These personnel may provide customer service or technical support.

Customer Service as a Performance Measure-

§Customer service is a category of performance measures, such as the percentage of orders delivered on time and complete, the number of orders processed within acceptable time limits, etc.

Customer Service as a Philosophy

§Customer service is a company-wide commitment to providing customer satisfaction by placing emphasis on quality and quality management.

Customer Service as an Activity

§Customer service is a particular task that a firm must accomplish to satisfy the customer's needs. Order processing, billing and invoicing, product returns, and claims handling are all typical examples of the customer service activity.

Post-Transaction Elements

§occur after the sale Includes warranty repair capabilities, complaint resolution, product returns, operating information, etc.

Transaction Elements

§occur during the sale Includes the order lead time, the order processing capabilities, the distribution system accuracy, etc.

Pre-Transaction Elements

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