CRM test 2

Processes can be classified in several ways: vertical and horizontal; front office and back office; primary and secondary.

Vertical processes: are those that are located within a business function Front office processes: are those that customers encounter; example is complaints handling process Primary processes: have major cost implications for companies, or given their impact on customer experience, major revenue implications Secondary processes: have minor implications for costs or revenues & little impact on customer experience (Page 374)

Customer communications management (CCM) applications aim to

'improve an organization's creation, delivery, storage, and retrieval of outbound and interactive communications with its customers'.13 CCM applications enable customer interactions through a wide range of communication media, including email, SMS, websites, social media, print and customer self-service.

CRM goals generally cluster around three broad themes:

(1) enhancing customer satisfaction or loyalty, (2) growing revenues or (3) reducing costs.

Outcomes through marketing, selling and service functions:

1. Acquisition: the acquisition of carefully targeted customers or market segments 2. Retention: the retention and development of strategically significant customers or market segments 3. Continuous development: the continuous development and delivery of competitively superior value propositions and experiences

The situation analysis examines the three dimensions of the customer strategy cube independently and jointly.

1. Customers/segments- which segments do we target? which segments do we serve? what are our customer-related marketing and sales objectives? 2. Market offerings- which products do we offer? what is our branding strategy? How well known are our offerings? who do we compete against? 3. Channels- which channels do we use to distribute to our customers- direct & indirect? which channels are most effective?

SFA applications offer a range of functionality: (found in operational CRM section) such as:

1. account management- offers sales reps and managers a complete view of the customer relationship including contacts etc 2. activity management- keep sales reps and managers aware of all activities whether complete or pending related to an account or contact 3. contact management functionality- includes tools for building, sharing and updating contact lists, making appointments, time setting, and task, event 4. contract management functionality- enables reps and managers to create, track, progress, accelerate, monitor, and control contracts with customers 5. document management software- allows companies to manage sales-related software documents, keep them current and ensure that they are always available to reps

data-building schemes

1. competition entries- customers are invited to enter competition of skill, or lotteries. they surrender personal data on the entry forms 2. subscriptions- customers are invited to subscribe to a newsletter or magazine, again surrendering personal details 3. registrations- customers are invited to register their purchase, at which time they also provide additional data like name, address and contact details 4. loyalty programmes- these enable companies to link purchasing behavior to individual customers or segments. when joining, customers complete application forms, providing the company with personal, demographic and even lifestyle data

The motivation to adopt a KAM structure comes from recognition of a number of business conditions:

1. concentration of power lies in fewer hands- big companies are becoming bigger; they control a higher share of corporate purchasing. smaller companies re cooperating to create purchasing power and leverage purchasing economies. even major competitors are collaborating to secure better inputs 2. globalization- as companies become global they want to deal with global suppliers, if only for mission-critical purchases. global companies expect to procure centrally but require goods and services to be provided locally 3. vendor reduction programmes- customers are reducing the number of companies they buy from, as they learn to enjoy benefits from improved relationships with fewer vendors 4. more demanding customers- customers are demanding that suppliers become leaner; this means they eliminate non-value adding activities. they want suppliers to supply exactly what they want. this may mean more reliable, more responsive customer services, and just-in-time delivery (page 352)

The customer service excellence standard identifies five criteria that need to be satisfied for excellent customer service to be delivered

1. customer insight- effectively identifying customers, consulting them in a meaningful way and effectively measuring customer service outcomes. its about being able to use information to improve service delivery 2. the culture of the organization- it is challenging for any organization to build and foster a truly customer focused culture. to cultivate and embed this there must be a commitment to it throughout an organization, from the strategic leader to the front-line staff 3. info & access- customers value accurate and comprehensive info that is delivered or available through the most appropriate channel for them. putting the customers first can be an important step towards providing effective communications 4. delivery- how a business achieves its business aims, the outcomes for customers and how problems are managed can determine the orgs success. listening to customers views about their service experiences can be just as important as achieving key performance targets. comments, feedback, and complaints from customers can help make vital adjustments 5. timeliness & quality of service- the promptness of the initial contact and keeping to agreed timescales is crucial to customer satisfaction. However, speed can be achieved at the expense of quality, therefore, the issue of timeliness has to be combined with the quality of service to ensure the best results

benefits from SFA

1. salespeople- shorter sales cycles, more closing opportunities, higher win rates 2. sales managers- improved salesperson productivity, improved customer relationships, accurate reporting, reduced cost of sales 3. senior management- improved visibility of the sales pipeline, reduced risk of unexpected variations from the sales forecast, accelerated cash flow

conditions that influence the choice of hardware platforms

1. the size of the database 2. existing technology 3. the number and location of users (page 299)

5 stages of social media customer management

1. track customer sentiment in social media 2. use social media to communicate with customers 3. integrate social media into customer service 4. create a social media team across all customer touchpoints 5. develop an integrated company-wide social media strategy

Each year, companies lose

20-40%

what is CRM strategy

CRM strategy is a high level plan of action that aligns people, processes and technology to achieve customer-related goals.

Web self-service

Customers can perform routine transactions online, and access information by searching a knowledge base or reviewing a frequently asked questions (FAQ) page.

CRM software is not usually modularized.?

FALSE CRM software is usually modularized. For example, a sales force automation (SFA) application will contain comprehensive information about contacts, opportunities, cases, activities and other issues that are important for the sales rep to work effectively and efficiently on her accounts

Immediate and latent benefits from CRM

Immediate- more sales leads, more revenues from cross selling, better margins (yield management) Latent- unspecified new products and services arising from enhanced insight, stronger customer partnerships, etc

interpersonal contacts

Interpersonal contacts between people from the seller and buyer dyad are important, whether they are conducted face-to-face or mediated by technology such as phone, chat and email. On the seller's side these contacts are important for identifying customer needs, requirements and preferences, for understanding and managing customer expectations, for solving problems and showing commitment. Over the life of a relationship, such personal contacts contribute to the reduction of uncertainty and the creation of close social bonds. Interpersonal communication also underpins the development of product and process adaptations that serve as investments in the relationship. These act as structural bonds. (351)

lead management

Lead management allows companies to capture, score, assign, nurture and track sales leads. Effective lead management processes are important because a significant proportion of leads, estimated at between 40 per cent and 80 per cent, are lost before the sales cycle is completed.

what is SFA?

Sales force automation is the application of computerized technologies to support salespeople and sales management in the achievement of their work-related objectives

Forms of CRM and data used

Strategic CRM- uses customer related data to identify which customers to target for acquisition, retention, and development and generate insight for the appropriate value propositions and experiences to offer them Operational CRM- uses customer related data in the everyday selling, marketing and customer service operations of the business Analytical CRM- uses customer-related data to support the marketing, sales, and service decisions that aim to enhance the value created for and from customers

A focus on benefits and the appropriate organization structure with which to deliver them are necessary but not sufficient for CRM success. Also required is an effective project/ program management plan for CRM implementation.

TRUE-not sufficient

lead generation

an important marketing objective, particularly in B2B contexts. sales people challenged to grow the numbers of customers served needs to be presented with high quality leads for follow up

content management

applications allow marketers to manage digital content throughout its lifecycle, including creation, editing, approval, storage, publishing, versioning, and deletion

Email response management systems (ERMS)

are an increasingly important part of the service automation landscape. Email is widely used for both inter-personal and inter-company communications. ERMS are designed to manage the reception, acknowledgement, interpretation, routing, response, storage and analysis of incoming email securely and effectively.

Market- or customer-based organization structures

are common when companies serve different customers or customer groups that are felt to have different requirements or buying practices. Market- or customer-based managers come in many forms: market managers, segment managers, account managers and customer business managers

Relational databases

are now the standard architecture for CRM applications that use structured data. Relational databases store data in two-dimensional tables comprised of rows and columns, like a spreadsheet. Relational databases have one or more fields that provide a unique form of identification for each record. This is called the primary key.

Organizational culture

can be defined as s pattern of shared values and beliefs that help individuals understand organizational functioning and thus provide them with the norms for behavior in the organization.

digital analytics

explore data generated by customer behavior in interactive channels including online, mobile, and social media

case management

covers the full cycle of activities involved, from receiving initial notification of a matter of concern to a customer to its final resolution and the case file being closed. Case management is also known as incident management and issue management.

SERVQUAL service quality model

developed by A. Parsu and colleagues in North America and claims there are five core components of service quality: reliability, assurance, tangibles, empathy, and responsiveness

The International Standard for Service Excellence (TISSE)

distinguishes five main components of customer service excellence. Known as the 5Ps, they influence customer acquisition, retention and satisfaction. The 5Ps are: policies, products, premises, processes and people.

marketing performance management (MPM)

enables companies to measure their marketing performance through analysis and reports, and improve outcomes over time through closed-loop marketing

Product visualization software

enables sales reps and customers to produce realistic computer-generated images or animations of products before they are manufactured. This is a useful application when linked to a product configurator. Static images can take the form of a simulated photograph, 3-D model or technical drawing.

benefits from service automation

enhanced service effectiveness, enhanced service efficiency, greater service agent productivity, better agent work experience, improved customer experience, improved customer engagement, improved customer retention

loyalty management

functionality allows orgs to develop and operate loyalty management programes.

functional structure

has sales, marketing and service specialists reporting to a functional head such as a director or vice president of sales and marketing. The specialists might include marketing analyst, market researcher, campaign manager, account manager, service engineer and sales support specialist.

The organization's CRM vision

is a high-level statement of how CRM will change the way the business relates to its customers.

product encyclopedia

is a searchable electronic product catalogue that generally contains product names, stock numbers, images and specifications.

Customer self-service (CSS)

is an attractive option for companies because it transfers the responsibility and cost for service to the customer.

product or brand organization structure

is common in companies that produce a wide variety of products, especially when they have different marketing, sales or service requirements. This sort of structure is common in large consumer goods companies such as Procter and Gamble and Unilever, and in diversified business-to-business companies.

Alfred Chandler

is credited with the expression 'strategy before structure', suggesting that organizations should decide their strategic goals before designing the structure of the organization to bring about the achievement of those goals.

A matrix organization

is often the preferred structural solution when a company has several different product lines serving several different customer groups. A matrix typically has market- or customer-based managers on one side, and product managers on the other side of the matrix. (349)

Service automation

is the application of computerized technologies to support service staff and management in the achievement of their work-related objectives.

Systems Integration

is the practice of aligning and combining system components such as people, processes, technology and data for the achievement of defined outcomes.

telemarketing

is the use of the telephone to identify and qualify prospects, and to sell and service the needs of customers.

partner management

solutions enable companies to coordinate and work collaboratively with channel partners and others

Integrated marketing management (IMM)

offer wide-ranging functionality to support large organizations with 50 or more marketing practitioners; main role of IMM solutions is to help marketers align their analysis, planning, implementation, and control activities so that they can become more effective, efficient and accountable

Geographic Stucture

organizes some or all of the three core customer management disciplines - marketing, selling and service - on territorial lines. Selling and service are more commonly geographically dispersed than marketing. International companies often organize geographically around the Americas, EMEA (Europe, Middle East and Africa) and Asia- Pacific regions. Smaller companies may organize around national, regional or local areas.

The nordic model

originated by Christian Grönoos and developed by others, identifies three components of service quality: technical, functional, and reputational

Marketing automation is

the application of computerized technologies to support marketers and marketing management in the achievement of their work-related objectives.

keyword marketing

the practice of generating website traffic from internet users who have entered keywords into search engines

role of IT in a corporate environment

to allow senior management to control information and decision making (350)

Campaign management is the technology-enabled application of data-driven strategies to select customers or prospects for customized communications and offers that vary at every stage of the customer lifecycle and buyer readiness.

true

Data about customers are not only available in corporate databases maintained in functional areas such as marketing, sales, service, logistics and accounts, but are also available from third parties such as market research firms and credit scoring agencies, and increasingly in social media such as Facebook, Twitter and YouTube.

true

Direct mail campaign management is a specific form of campaign management in which the communication medium is direct mail.

true

Marketing optimization software also lets you explore any number of 'what-if' scenarios, changing constraints and objectives, and compare the results, before committing any marketing resources.

true

Mining current customer information can help in acquiring the right type of new customers

true

Modelled data are generated by third parties from data that they assemble from a variety of sources.

true

Online marketing is the process of creating value by building and maintaining online customer relationships.

true

SFA solutions, like other CRM technologies, are accessed in one of two ways. The solution can either be installed on the user company's own servers or it can be accessed on another party's servers via the Internet.

true

Success or failure of CRM is often determined well before you start the program.

true

Successful CRM begins with acquisition of the right customers and avoiding customers who will be costly to serve.

true

The people best placed to answer the question 'what information is needed?' are those who interact with, or communicate with, customers for sales, marketing and service purposes, and those who have to make strategic CRM decisions.

true

Trigger marketing is the practice of responding to some event in a way that is designed to achieve some marketing goal such as make a sale, identify a cross-sell opportunity, prevent negative word-of-mouth or promote positive word-of-mouth.

true

Information for customer-related databases can be sourced internally or externally.

true- Information for customer-related databases can be sourced internally or externally. Internal data are the foundation of most CRM programmes, though the amount of information available about customers depends upon the degree of customer contact that the company has. Some companies sell through partners, agents and distributors and may have little knowledge about the demand chain beyond their immediate contact.

External data can be classified into three groups:

• compiled list data• census data• modelled data

Structured customer-related data are stored in four different types of database:

• hierarchical• network• relational.• linear.