6B Operational Systems CRM Flashcards
What does CRM stand for?
Customer Relationship Management
What is CRM (definition)?
Businesses use technology and human resources to gain insight into behaviour and value of customers
What are the benefits of CRM?
Support strategic business value to a company Identify and target best customers Provide better customer service Make call centres more efficient Cross sell products more effectively Help sales staff close deals faster Simplify marketing and sales processes Discover new customers Retain customers Increase customer revenues
What are the components of a CRM system?
Sales automation Order processing Marketing automation Customer support Knowledge management Personalisation technology
What factors need to be looked at to ensure effective CRM?
What kinds of customer information it’s looking for and what it intends to do with that information
Different ways information about customers comes into a business, where and how data is stored and how it’s currently used
Different ways company interacts with customers (CRM systems link up each of these points - mail campaigns, web sites, call centres, mobile sales force staff, marketing and advertising efforts)
Collected data flows between operational systems and analytical systems that can help sort through these records for patterns
Company analysts can comb through data to obtain holistic view of each customer and pinpoint areas where better services are needed
What should CRM capture?
Individual customer value
Income generated from each individual customer
Cost to organisation of maintaining that customer relationship
Who are organisation’s most loyal customers
Data (responses to campaign, shipping and fulfilment dates, sales and purchase, account information, web registration, service and support records involved the way, demographic, web sales)
What are the top 10 tips for introducing CRM?
Learn everything about your customers
Conduct focus groups to ensure they want self service
Define clear business goals
Evaluate technology for its technical and financial merits
Does it match your customer base? Will it boost profitability?
Work as a team. Have customer support, IT and other departments involved every step of the way
Offer training to employees
Expect this to be iterative process that requires making changes as you learn more about your customers
Develop effective way to measure results
Underpromise and overdeliver
How does contact and account management function in CRM?
Helps sales and marketing capture and track data about every past and planned contact with customers
Stores in customer database which links throughout company
Provides sales reps with software tools and company data to support and manage sales activities
Updates company database
How does sales and marketing function in CRM?
Sales: Telephone Web Field - at customer site Retail - face to face
Marketing:
Campaign data
Content - business information
Data analysis - customer satisfaction surveys, marketing campaigns
How does marketing and fulfilment function in CRM?
Quantifies leads for targeted marketing campaigns
Captures customer response to direct marketing
Shows value of marketing campaigns
Helps schedule contacts quickly foll response to marketing
Updates customer database
How does customer service and support function in CRM?
Helps service staff create, assign and manage requests for service
Call centre software routes calls to appropriately trained staff
Help desk software provide relevant service data and suggestions for problem solving
Web based self service enables customers to access personalised support information with option of then contacting the company
Updates company database
How does increased revenue function in CRM?
Effective and efficient point-of-sale systems
Data analysis tools
Help identify and reward market to most loyal and profitable customers
Data mining of data stored in company database used to evaluate shopping habits etc.
How does personalisation function in CRM?
Recommends products based on - searches for patterns using multiple sources of data, common sets of criteria (interests / products purchased)
Requires ‘ a lot’ of data to actually work
Customers
Demographic data
Public information
Cookie info
Web form data
Loyalty card data
Lists can be bought and sold for thousands of pounds
How does maintaining customer relation function in CRM?
Costs six times more to sell to a new customer than to existing customer
Odds of selling to a new customer are 15%
Odds of selling to an existing customer are 50%
Dissatisfied customer will tell 8-10 people about their experience
70% complaining customers will do business within company again if company quickly takes care of problem
Company can boost its profits by 85% by increasing annual customer retention by only 5%
