1.1 CRM & The Latest Trends and Development Flashcards
The objective of this deck is to ensure the basics or foundation of CRM.
What is the meaning of customers?
A customer is an individual or business that purchases goods or services from another company.
What are the two types of customers?
External and Internal.
What are external customers?
Someone who uses and pays for the company’s products or services but is not part of the organization.
Example: In a retail store, an external customer is an individual who enters the store and buys the product.
What are internal customers?
Any member of the organization who relies on assistance from another to fulfil his job duties.
Example: A sales representative needs help from a customer service representative within the same company to place an order.
What is the meaning of customer relationship?
A customer relationship is the development of an ongoing connection between a company and its customers, both internal and external.
The relationship is measured by the degree that customer is being satisfied through the cycle of buying and receipt of goods or services.
involves:
-marketing communication,
-sales support
-technical assistance
-customer service
What is Customer Relationship Management (CRM)?
Customer Relationship Management is a process or methodology which combines people, processes and technology that seeks to learn more about customers’ needs and behaviors to develop stronger relationships with them.
Customer Relationship Management (CRM) is an approach to manage a company’s relationships and interactions with current and potential customers.
What are the purposes of CRM?
The purposes of CRM are:
- Understand customers
- Improve customer satisfaction
- Expand the customer base
- Enhance business sales
- Improve workforce productivity
What are the three frameworks that CRM primarily work on?
Operational, analytical and collaborative. (OAC)
What is the operational framework about?
Operational CRM is about automation of business processes to build long-term, profitable relationship with specific customers. That includes marketing, sales and service. Operational CRM is an important tool for lead generation because it frequently deals with past customer data such as previous marketing campaigns, purchases and service satisfaction.
Because of its concentration on efficiency, operational CRM is a great fit for companies with a shorter sales cycle and high repeat sales like e-commerce or business to consumer retail verticals.
What is the analytical framework about?
The main function of analytical CRM is to analyse customer data so that management can better understand market trends and customers’ wants and needs. The goal of analytical CRM is to improve customer satisfaction. Analytical CRM frequently uses data mining and pattern recognition to accomplish this task – it works well for companies in higher priced markets with a lot of competition.
What is the collaborative framework about?
Collaborative CRM is when companies share customers’ information with outside companies and businesses. By pooling their data, certain businesses are able to create an even greater experience for their customers by obtaining data which they otherwise would not have had access. It’s an excellent fit for markets where innovation and new product development is paramount to success because the additional data creates very detailed pictures of what consumers are currently responding to.
What are the recent CRM trends and development?
The recent CRM trends and development are:
- Data mining will gain prominence
- Social CRM will boost relationships
- Companies will offer amazing customer experience
- Response times will be shortened
- CRM adoption will increase
- Ease of use of CRM
- Cloud will be the in trend now
What is data mining?
Data mining is the process of unearthing useful patterns and relationships in large volumes of data. It uses statistical algorithms to uncover patterns and correlations and extracts knowledge buried in corporate databases.
Data mining techniques in CRM assist businesses in finding and selecting the relevant information that can then be used to get a holistic view of the customer lifecycle; this comprises of four stages: customer identification, attraction, retention, and development.
What is social CRM?
Social CRM is making use of social media services, techniques and technology to enable organisations to engage with their customers.
Companies will adopt Social CRM not just to capture customer data from multiple social media platforms, but also design experiences for customers who will offer tangible value in return for attention, engagement, and advocacy.
Why do companies offer amazing customer experience?
Customer service has become commonplace and is expected if a company wants to survive. Companies that will thrive in this age will go a step further. They will offer an amazing customer experience which will supersede price and quality as the key brand differentiator. More and more customers are willing to pay more for better customer experience.Hence, companies that take customer experience to the next level will get rewarded with increased customer lifetime value and transaction size.
