Supply Chain Management, Ch. 10
private clouds
pools of computing resources that reside inside an organization and that can be served up for specific tasks as need arrives
cloud computing (on-demand computing)
refers to Internet-based computing where software and storage is located on the Internet (in the cloud) and accessed via a web browser.
website self-service
self service applications on a company's website
sales territory management systems
software applications that allow sales managers to obtain information of each sales rep's activities
clickstream
the exact pattern of a consumer's navigation through a site
lead management systems
tool that allows sales reps to follow prescribed sales techniques when dealing with prospects
customer churn
turnover in a company's customer base
segment customers
placing customers in a behavioral/demographic class, for better tailored marketing
3 Importances of a CRM
(1) Organizational longevity, (2) information flow across the supply chain (feedback loop - the entire supply chain meets the customer expectations), (3) improve capability to meet customer expectations/needs (successful CRM: 50% people, 30% process, 20% technology)
customer contact centers (call centers)
A central point within an organization from which all customer service contacts are managed by various forms of technology
data warehouse
A central repository for all or significant parts of the data that an enterprise's various business systems collect.
Post-transaction customer service elements
After-sales service, warranty repair, product returns and operating information
application service providers
Company that offers website's services for a fee
What is the challenge a CRM faces as customer base increases?
Customer base gets more diverse, so their needs get more diverse. Our supply chain must get more responsive to this diversity.
Relationship Marketing/Permission Marketing
Customer selects the type and time of communication with organizations (opt-in, opt-out)
Transaction customer service elements
Facilitating order processing, order management (lead-time), and order fulfillment.
Seven Rs Rule
Right (1) product, in the right (2) quantity, in the right (3) condition, at the right (4) place, at the right (5) time, for the right (6) customer, at the right (7) cost (the Perfect Order).
Cross-selling
Selling additional products a the result of an initial purchase
Target Marketing Efforts
Specific market approaches to different segments of the market
knowledge management systems
Supports the capturing, organization, and dissemination of knowledge throughout an organization / experience is captured before someone leaves
Pre-transaction customer service elements
The organizational structures and systems necessary to give the buyer confidence in our capabilities
Customer Relationship Management (CRM)
The overall process of building and maintaining profitable long-term customer relationships
customer lifetime value (CLV)
The present value of all profits expected to be earned from a customer over the lifetime of the customer's relationship with a company. (aka customer value, customer profitability)
data privacy
a growing concern because of the vast amounts of personal data stored in databases today and the many breaches that have occurred in the recent past.
sales force automation (SFA)
a system that automatically tracks all of the steps in the sales process; Sales force being outfitted with notebook computers, Web browsers, and sales contact management software that conned them to marketing Web sites on the Internet, extranets, and their company intranets.
Organizational Longevity
cost of new vs. existing customers | one of the importance's of a CRM
posttransaction
customer service activities that occur after a sale
pretransaction
customer service activities that occure before a sale
perfect order
delivery without failure in any order attribute: complete, on time, damage free, and documentation correct
Customer Defection Analysis (Customer Churn)
finding methods to retain customers (necessary b/c 5% improvement in customer retention = 75% increase in profits)
customer defection analysis
information that analyzes why customers stop using a particular business.
relationship marketing (permission marketing)
letting customers select the type and time of communication with organizations
sales activity management system
management tool to reduce errors improves sale force production and boost customer satisfaction
event-based marketing
offer the right products & services to customers at the right time