Customer Relationship Management (CRM)- reading assignment MIS
Which of the following statements about how CRM systems assist businesses in targeting a market segment are true?
- An organization's target market shares common characteristics including geographic location, demographic and psychographic backgrounds, and income level - CRM software is often used to identify an organization's target market and to provide critical insights into the profiles of these customers. - Analysis of customer characteristics is an important part of the target market identification process.
Select the true statements about how CRM market analytics improve the quality of customer data collection.
- CRM relies heavily on data that is collected from a variety of sources including point of sale, e-commerce, social media, and email marketing. - Analytics provided by CRM help to improve business processes and efficiencies. - The quality of this data collected from various sources including point of sale and social media impacts the overall effectiveness of a CRM system.
Which of the following statements about how CRM systems assist businesses in targeting a market segment are true?
- CRM systems are used to collect data from customer transactions. This data is used for target market identification. - CRM systems provide a variety of analytical tools, including those used to identify and understand the target market.* - Organizations must precisely identify their target markets so they best utilize resources when marketing to potential and existing customers.*
Select what's true about how businesses use CRM systems to develop relationships with customers.
- Data collected by CRM systems includes customers' likes and dislikes, what content they engage with, and what they post about competitors.* Information from - CRM systems can be efficiently and intelligently used to make informed business decisions and to develop relationships with their customers. - CRM systems provide organizations a clear overview of their customers.
Select what's true about how businesses use CRM systems to analyze customer information.
- Information is gathered from point of sale and e-commerce technology as well as through customer interactions. - Customer relationship management (CRM) analytics provides insights into customer behavior that can be used to make informed business decisions. - Often CRM systems use data mining to extract information from a customer database.*
Select all that apply According to Salesforce.com, which of the following are factors to consider when selecting a customer segmentation tool? More than one answer can be selected.
- Integration -Data collection and analytical tools - Flexibility and scalability - Cost
Organizations legitimately collect data from individuals for a variety of purposes including for CRM. While this information is legitimately collected, many organizations go on to sell this data to third parties who often use it for marketing and demographic analysis. Consider your favorite mobile app. Have you ever read the fine print before clicking the "I agree" button? Most people have never taken the time to read the fine print which often includes giving permission to the organization to use your data. In 2015 Facebook faced the Cambridge Analytica scandal in which the firm paid Facebook to acquire their users' personal data. It is estimated that over 87 million people were affected by this activity. As a result, many organizations (due to influence from regulatory agencies) are now more transparent about what kinds (if any) of data may be sold to third parties. Most consumers expect that the organization they share their personal data with will use it in ethical ways. However, data privacy and security are very difficult to control on the individual level. It is up to the organization to determine what types of data they will collect, how they will use this data, and to properly communicate these policies and procedures with the public.
- Many organizations sell consumer data to third parties who use the data for marketing and demographic analysis. - Organizations legitimately collect data from individuals for a variety of purposes including for CRM.
Qualitive data
- Transaction history - Online activity - Customer service - Inbound / outbound communication
The design of a CRM system that collects data on customer interaction should include which of the following elements?
- Treating customers as individuals - Monitoring customer interactions - Automation -Customized Communication*
Which of the following are popular CRM options that are used to assist with sales prospecting?
- Zoominfo - LinkedIn Sales Navigator - Clearbit Prospector
Which of the following explain the importance of CRM to businesses? More than one answer can be selected.
-CRM is used to manage critical relationships -Systems assist organizations to help synchronize customer interactions -CRM systems provide insights into customer satisfaction metrics
Which of the following statements about CRM systems use in customer acquisition are true?
-CRM software systems track prospective customers (and current customers) through the various stages of the funnel -Customers can be acquired using a number of approaches including social media, search, affiliate, referral, and email marketing. * -Organizations often track customer acquisition using a lead generation funnel
Select the true statements about CRM systems and how they assist businesses in qualifying potential customers.
-Pursuing unqualified leads can be costly to a company because spending marketing dollars to pursue them often does not succeed - Qualifying a potential customer occurs when an organization determines whether or not an individual or business makes sense to pursue as a potential customer. - Many CRM software programs offer the opportunity to create customized sales funnels based on specific organizational needs and sales characteristics.
According to Hubspot, in a recent survey _______% of sales professionals rated sales prospecting as the most difficult stages in the sales process. CRM systems can assist with prospecting sales targets. Please enter a number for your answer.
42
According to the FTC Section________ , the government has the authority to prevent unfair or deceptive trade practices. The FTC has the authority to take legal action against organizations that fail to implement and maintain reasonable data security measures, fail to publish and follow a privacy policy, and fail to provide sufficient security for personal data stored by the organization.
5
According to Harvard Business School professor Clayton Christensen, there are over 30,000 new products introduced every year, and ____% of these products fail.
95
Monitoring Procurement Methods
Anticipating preferred shopping methods, customer motivation, purchase frequency, and spending habits allows businesses to be more profitable.
Qualitative Data
Attitude Opinion Motivation
Select the sources of information that a CRM system uses to collect data about current customers.
Customer Surveys
Customer Segmentation
Customers are grouped into homogenous segments where behavior can more easily be analyzed.
personalization
Customized marketing is created based on individual customer behavior.
CRM analytics can provide insight into how customers and members of the organization interact with the CRM system. This can be used to encourage interaction and use.
Demonstrate the Value of CRM
Customer interaction encompasses all the communication that takes place between a customer and an organization. This includes which of the following:
Email Social media Traditional mail
CRM data collection can be streamlined by using analytics to determine end-user needs. A better understanding of users' unique preferences and activities can help to guide data collection.
End- user needs
One of the benefits of using a CRM system is that data can be analyzed and provided to assist in measuring customer __. It is the value that the future lifetime revenue an organization's customers will generate minus customer acquisition costs and customer retention costs.
Equity
Europe's General Data Protection Regulation (GDPR)
Governs data protection and privacy in the European Union and European Economic Area. Additionally, it governs the transfer of personal data outside the EU.
Customer Value and Profitability
Identification of which customers create the highest revenue is made.
Proper CRM administration
It is important to make sure staff who interact with the CRM system are properly trained and that managed access and access-levels are in place.
server security
It is important to take security measures to protect data. This can be accomplished by ensuring firewalls and routers are secured and that all software is up to date.
Identity Data
Name ,Address ,Gender , Date of Birth
Social Media
Organizations can leverage various of these platforms and integrate them within a CRM platform. These sites include YouTube, Instagram, Facebook, and TikTok
Predictive Modeling
Prior information is used to assist in the determination of the success or failure of future endeavors.
Analytics around this data can provide insights about what features to include or improve in a new product or service.
Product / service Measurements
Which of the following are considered customer interaction metrics? More than one answer can be selected.
Service Sales Marketing
CRM analytics can provide information about where data erosion occurs and how processes can be improved to minimize it.
Standardized Data Collection Processes
California Consumer Privacy Act (CCPA)
State-specific law that mandates disclosure about data collection policies and gives individuals the ability to access, correct, and delete personal information.
According to Salesforce.com, segmented marketing campaigns have been shown to generate an average of a 760% increase in revenue. When selecting a customer segmentation tool Salesforce.com has identified four factors to consider. One of these factors is integration. Integration is:
The ability to efficiently link data from various sources and platforms.
Fair Credit Reporting Act
This act regulates the gathering and use of credit reporting information.
Gramm-Leach-Bliley Act
This is a US law that governs personal information collected by financial institutions.
Analytics
Used to uncover trends in the data that is collected about customers.
CRM systems can be designed to capture data about why users are buying a product or service and how they are using it.
User experience
Customer Surveys
Utilized to collect feedback from customers. They can be deployed using a variety of means including paper, smartphones, email, and over the phone
CRM analytics can be used to test the viability of products or services. This viability check results from the analysis of consumption trends and usage behaviors.
Viability
By 2021 customer relationship management systems, as predicted by the Gartner IT Services company, will be the single largest revenue area of spending in _______software.
enterprise
Customer _______ is the value that the future lifetime revenue an organization's customers will generate minus customer acquisition costs and customer retention costs.
equity
In 2015 _ faced the Cambridge Analytica scandal in which the firm paid Facebook to acquire its users' personal data. It is estimated that over 87 million people were affected by this activity.
A _____ share of customer or share of wallet means that existing customers are spending more to purchase products or services from one organization than they are from direct or indirect competitors.
high
Research shows that qualified sales leads result in better close rates and a higher return on____ (ROI). This process can be difficult to execute without the assistance of CRM software.
investment
CRM software assists organizations in identifying marketing qualified___ (MQLs).
leads
CRM analytics often give insights that foster innovation. This information can be used by decision-makers to identify strong areas and potential growth areas.
product development
According to research by Risk Based security, there were 2037 publicly reported data breaches in the first half of 2020.
true
Share of customer, also known as share of_______ , focuses on getting as much business as possible from fewer customers.
wallet
