Supply Chain Rutgers Chapter 11

6 Steps to a Successful CRM Plan

Creating the CRM plan Involve CRM users from Outset Select the Right Application and Provider Integrate Existing CRM Applications Establish Performance Measure Providing CRM training for all users

Cross Selling and Up Selling

Cross-selling occurs when a company sells an additional related or complementary product or service to an existing customer after the initial purchase. Up Selling: 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.

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.

Knowledge Management

Enables quick decision making, better customer service, and a better-equipped and happy sales staff.

Event Based Marketing

a form of marketing that identifies key events in the customer and business lifecycle.

CRM's Role in Supply Chain Management

A company must find ways to meet its customers needs; otherwise, just as any firm would react with a non-performing supplier, the customer goes elsewhere and takes years worth of future purchases with them. Companies must create methods for becoming and staying good suppliers themselves

Relationship Marketing or Permission Marketing

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.

CRM Program

It is simple in that it involves training users within the company to make customers feel valued. It is complex in that it also means finding affordable ways to identify potentially thousands, if not millions, of customers and their needs, and then designing customer contact strategies geared toward creating customer satisfaction and loyalty among your segments of customers. IT IS Both SIMPLE and COMPLEX

Website Self Service

Portals for customers to access their account information, check operating hours, ask questions, see product information, find contact information, check on orders, get shipping information, etc. Customers can put their own information into the system which avoids having the company take the time to do it, and also potentially eliminates errors.

Customer Data Privacy

Rules and laws regarding invasion of privacy include Patriot Act in the US and Internet Privacy Law in the EU

Sales Activity Management

Tool offering sales reps a guided sequence of sales activities

Personalizing Customer Communication

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. Use there language and communicate in a meaningful way

Cloud Computing

ala carte and on demand offerings accessed via web browser Changing the cost structure of CRM applications

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.

Customer Lifetime Value

A prediction of the net profit attributed to the entire future relationship with a particular customer. Some customers are worth a lot more than others, and identifying your key or top tier customers can be extremely valuable to your business. An important metric for determining how much money a company is willing to spend on acquiring new customers and how much repeat business a company can expect from particular customers.

Target Marketing

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

Churn Reduction

Churn is the process of customers changing their buying preferences because they find better or cheaper products and services elsewhere. Churn Reduction is all of the efforts companies develop to stop losing customers to the competition

Social Media

Creating and cultivating virtual communities around product or brand is a powerful way to engage consumers

Predicting Customer Behavior

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.

Sales Territory Management

Sales managers obtain information on each sales rep's activities

Lead Management

Sales reps can follow prescribed tactics when dealing with prospects to aid in closing the deal.

Segmenting Customers

The practice of dividing a customer base into groups of individuals that are similar in specific ways relevant to marketing. In simple terms, grouping customers to create specialized communications about products.

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.

What Call centers can do

Can categorize calls Determine average resolution time Increase customer satisfaction levels Provide input to forecast future demand Improve the productivity of the overall staff May be in-house or outsourced

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.

Strategically Significant Customers

Not all markets and customers are equally important. Building relationships with customers that provide little value can be counterproductive. Relationships should be built with strategically significant customers that are likely to provide the most value for the effort. Strategically significant customers are: Customers with high life-time value, i.e., customers that will constantly buy the product(s) or use the service(s) in the long-term. Customers who serve as role models or benchmarks for other customers. Customers who inspire change in the supplier and/or the supply chain.

Customer Defection Analysis

The process of analyzing the customers who have stopped buying to determine why.

Seven R's Rule

The right product the right quantity the right quality the right place the right time the right customer the right costs

Measuring Customer Satisfaction

This can be done through surveys, questionnaires and direct phone calls to customers asking them their opinions. Decisions have to be made regarding how to capture the data, and how to analyze the information so you can use it productively going forward.

Sales Force Automation (SFA)

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

Field Service Management

involves setting up the company operations to allow customers to interact directly with the company's service personnel. Customers can call the service people directly, and make an appointment with the service person to come out to service the product.

CRM

is about building and maintaining profitable long-term customer relationships beyond the one-off buy and sell transaction. By: Focusing on customer requirements Delivering products and services in a manner resulting in high levels of customer satisfaction How: Communicating with customers Understanding their behavior and their requirements Building a system to satisfy those requirements

Customer Service

the act of taking care of the customer's needs by providing and delivering professional, high quality service before, during, and after the customer's requirements are met.

Customer Relationship Management

the transformation of the people, process, and technology required to become a customer-centric organization;. It involves acquiring, retaining and partnering with selective customers to create superior value for both the company and the customer. It provides a means and a method to enhance the experience of individual customers so that they will remain customers for life.