Supply Chain- Customer Relationship Management Exam 3 William McLaury

Pre-Transaction Elements

precede the sale and include customer service policies, the mission statement, organizational structure, and system flexibility

Targeting Marketing Efforts

e-mail or direct mail SAVES LABOR and postage, REDUCES chances of being a NUISANCE

4. Integrate Existing CRM Applications

- CRM is a collection of various applications implemented over time. - Customer contact mechanisms need to be coordinated so that every CRM user in the firm knows about all of the activity associated with each customer. - Centralized database or data warehouse containing all customer information.

2. Involve CRM users from Outset

- Employees should understand how it affects their jobs - Create a project team with members from all affected organizational areas. - Test with a pilot application

3. Select the Right Application and Provider

- Find an appropriate application and determine the extent of customization - Visit trade shows, read trade literature, hire consultant, etc. -Compare based on performance, security, reporting capabilities, system availability, etc.

1. Create CRM Plan

- Objectives of the CRM program - CRM's fit with corporate strategy - New applications to be purchased or developed - Integration or replacement of existing legacy systems - Personnel Requirements - personnel, training, policies, upgrades, and maintenance - The costs and time frame for implementation

Key Tools and Components of CRM

- Segment customers - Target Marketing Effort - Relationship Marketing or Permission Marketing - Cross Selling - Predicting Customer Behaviors - Customer Defection Analysis - Churn Reduction - Customer Value Determination - Personalizing Customer Communications - Event Based Marketing

Call Centers

-Can categorize calls -Determine average resolution time -Increasing customer satisfaction levels -Provide input to forecast future demand -Improve the productivity of the overall staff

Additional Components of CRM

-Measuring Customer Satisfaction Customers are frequently given opportunities to provide feedback about a product, service, or organization -Website Self-Service Web sites act as support mechanisms for call centers. Customers can access their account information and operating hours, contact information, etc. -Field Service Management Customers can communicate directly with product specialists using wireless devices and the right diagnosis can be made quickly

Churn Reduction

-Reducing customer defections -5% improvement in customer retention can result in a 75% increase in profits

Automated Sales Force Tools

-Sales Force Automation (SFA) Used for documenting field activities, communications with the home office, and retrieving sales history in the field. 1. Sales Activity Management Tool offering sales reps a guided sequence of sales activities 2. Sales Territory Management Sales managers obtain information on each sales rep's activities 3. Lead Management Sales reps can follow prescribed tactics when dealing with prospects to aid in closing the deal. 4. Knowledge Management Enables quick decision making, better customer service, and a better-equipped and happy sales staff.

Personalizing Customer 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. -Clickstream: tracking how a customer navigates a website can help tailor a website's images, ads or discounts based on past usage of the site.

Customer Relationship Management

-involves training users and treating customers right, to MAKE THEM FEEL VALUED - means finding affordable ways to IDENTIFY (potentially millions of) CUSTOMERS AND THEIR NEEDS, and then designing CUSTOMER CONTACT STRATEGIES geared toward CREATING CUSTOMER SATISFACTION AND LOYALTY among your segments of customers.

6 Steps to Successful CRM Program

1. Create 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

Seven R's Rule

1. the right product 2. the right quantity 3. the right quality 4. the right place 5. the right time 6. the right customer 7. the right costs + the RIGHT documentation = THE PERFECT ORDER

Relationship Marketing or Permission Marketing

Customers SELF-SELECT the type and time of communication they want. Requires software and active customer participation. [Mobile marketing and QR Codes.]

Customer Value Determination

Determine CUSTOMER LIFETIME VALUE so that appropriate communications, benefits, services or policies can be established for each customer segment.

Predicting Customer Behaviors

Facilitates forecasting the likelihood of customers' purchases

Customer Defection Analysis

Finding methods of retain customers

Segmenting Customers

Grouping customers to create SPECIALIZED COMMUNICATIONS about products

Event Based Marketing

Offer the right products and services to customers at the right time. Offer individual promotions tied to specific events

Cross-Selling

Selling additional products as the result of an INITIAL PURCHASE (e.g., e-mails from Amazon.com describing other products bought by people who purchased one or more of the items you just purchased.)

Post-transaction Elements

occur after the sale and include warranty repair capabilities, complaint resolution, product returns, and operating information

Transaction Elements

occur during the sale and include the order lead time, the order processing capabilities and the distribution system accuracy