01. CRM Definition

Question 1

What is the biggest revenue-driver for a company?

Answer 1

Customer

Question 2

Why is CRM important?

Answer 2

• How you treat your customers goes a long way to determining your future profitability.
• Customers are smarter about the service they should be getting and are voting with their wallets.

Question 3

What is the currency of success in the 21st century marketplace?

Answer 3

Customer information

Question 4

Which power shift is wel underway?

Answer 4

Power shift from producer to customer.

Question 5

How is the new power shift made possible?

Answer 5

• By the capability to use the Internet to learn about individual buying patterns

and

• to customize offerings that delight the customer.

Question 6

What is the competitive advantage of the Information Age and is the bottom-line for market leadership?

Answer 6

Successful customer relationship management

Question 7

What is CRM about?

Answer 7

It’s about giving customers what they want, when, where, and how they want it.

Question 8

What is the ultimate prize of the 21st century business?

Answer 8

Owning the customer

Question 9

How will Internet Age companies position themselves?

Answer 9

• Instead of owning the product and pushing it to market segments,
• Internet Age companies will seek to position themselves directly in the path of empowered customers

Question 10

Who holds the power?

Answer 10

The informed customer holds the power in the marketplace, determining what is to be made, when, where and at what cost.

Question 11

What does a customer want?

Answer 11

• Customers want complete care throughout the consumption life cycle, not just the buying transaction.
• They demand the best deal, the best service and solution-centered support.

Question 12

What is mass customization about?

Answer 12

It is about turning a company, and its entire value chain, over to the command and control of the customer.

Question 13

What’s the difference between the Industrial Age & the Customer Age?

Answer 13

• The Industrial Age was about mass production,
• The Customer Age is about mass customization.

Question 14

Customer relationship management is…

Answer 14

• a business strategy to select and manage
• the most valuable customer relationships.

Question 15

How is CRM achieved?

Answer 15

By putting the customer in control by providing self-service and solution-centered support.

Question 16

Why does companies segment customer behavior to one-to-one relationships?

Answer 16

To individualize goods and services, with the purpose to earn customer loyalty to gain a lifetime of business.

Question 17

What meant customer care historically?

Answer 17

Responding to customer questions and problems via a company’s tollfree number - the callcenter.

Question 18

How is the historically customer care changed?

Answer 18

Virtually every area of customer service can be handled via the Internet. Customers can ask questions via email, search support databases for similar problems or questions and get product information via the Web.

Question 19

What are some areas of customer service?

Answer 19

• Information
• Support
• Maintenance
• Warrantees
• Upgrades and status

Question 20

What is the main advantage of the Web in customer service?

Answer 20

While the Web cannot totally replace the phone and face-to-face communication with customers, it can strengthen these and all customer ‘touch points’.

Question 21

What is a touch point?

Answer 21

The point of contact, esp. when products come into contact with a customer.

Question 22

What has the Pareto Principle to do with CRM?

Answer 22

Customer relationships are assets that require investment in order to reach full potential. The enterprise must determine which relationships are worth the investment and how to get the highest return from each one. Customers with the highest potential to perform should receive the most attention.

Question 23

Give examples of a CRM-minded website?

Answer 23

• The Ford-Car configurator
• Personalize your shoe from Nike
• Personalize your lego

Question 24

What does CRM technology enables?

Answer 24

It enables a systematic way of managing customer relationships on a larger scale. In essence, effective customer relationship management.

Question 25

How is CRM best implemented?

Answer 25

CRM always starts with a **business strategy**, which then drives **changes in the organization and work processes**, which are in turn enabled by **information technology**.

Question 26

Which CRM projects are destined to failure?

Answer 26

Projects that focus on **technology** first, rather than **business objectives**.

Question 27

Why has CRM gained popularity in the last few years?

Answer 27

With **product advantages reduced or neutralized** in many industries due to increased "**commoditization**", the customer **relationship** itself is the focus of **competitive advantage**.

Question 28

Why are product advantages reduced?

Answer 28

The **cycle of innovation-to-production-to-obsolescence has accelerated**, leading to an **abundance of options** for customers and a **shrinking market window** for vendors. Internet-surfing customers have a far easier time collecting information about competing suppliers, and can switch to another vendor at the click of a mouse.

Question 29

Which business processes, involved in the customer relationship lifecycle, support CRM software?

Answer 29

* Marketing: targeting prospects and acquiring new customers through data mining, campaign management, and lead distribution. * Sales: closing business with effective selling processes using proposal generators, configurators, knowledge management tools, contact managers, and forecasting aids. * E-commerce: selling processes should transfer seamlessly into purchasing transactions, done quickly, conveniently, and at the lowest cost. * Service: handling post-sales service and support issues with call center applications or Web-based customer self-service options.

Question 30

What is the emphasis of CRM?

Answer 30

Long-term relationship value

Question 31

What are microsites?

Answer 31

A microsite is a separate page of a Web site that has a separate URL than its home page and is used to provide information about and/or promote something that is related to the home page. Microsites often are temporary Web sites that are removed from Web servers once the promotion is over or the information is no longer relevant.

Question 32

Give an example of a microsite.

Answer 32

A museum's Web site may have a link to a microsite with information about a special exhibition the museum is running, or a computer manufacturer may create a microsite to give the user information about a new product design.

Question 33

Explain this image

Answer 33

The inner-circle represent the four customer care business processes: * Customer self-service * order & shipping inquiries * online help & training * searchable knowledgebase * online upgrades * FAQs & newsletters * ... * Customer support * Account information * Product/service information * Collaborative customer community * Call center/help desk integration * Maintenance & upgrades * Warranty support * ... * Account management * order tracking * personlized account info * contracts * billing administration * ... * Marketing * advertising & promotions * personlized cross & up-selling * trend tracking & analysis * product bundling * ... The outer cirle represents the customer care application drivers: * Workflow/Process management * call center integration * issue escalation * approval routing * task management * ... * Information boundaries * personlized content delivery * single sign on * access to account/billing information * profile management for behavior tracking * ... * Trading services * partner collaboration * collaborative design * customer community * knowledgebase * ... * Data/Process integration * customer information management * order management * call center integration * billing administration * ... * Searching & info filtering * catalog searching * product comparison * category identification * ... * Event notification * customer notification * communication * sales, support, marketing notication * ...