Ch. 11 CRM MGT. & SUPPLY CHAIN Flashcards
BTMA
CRM?
Customer relationship mgt. is a customer focus and cust. driven organizational strategy that concentrates on assessing customers’ requirements for products and services and then provide a high-quality, responsive customer experience.
The process where customers lose a certain percentage of Customers is called
Customer Churn
A fundamental concept of CRM
Treat different customers differently bc their needs differ.
Difference bet. CRM strategy and CRM systems
CRM system are info. system designed to support org. CRM strategy.
What is low end CRM system and high end
Low end is designed with many small customers (Amazon)
High-end designed with few large customers (Bentley)
Basic elements of CRM policies
- Identify Customer Touch Points; interactions org. have with customers. Use of omnichannel marketing- creates seamless exp.
- Data consolidation; Collaborative CRM system- communication with customers in the org.
Recent Push of Consolidated Data
Customer Identity Management
What processes does Operational CRM system support
Front office business processes- interact directly with customers; sales, marketing and service.
Components of Operational CRM system
- Customer facing applications; direct interaction with cust. inclue customer service and support, sales force automation- records all component in a sales transaction process, marketing, and campaign management.
- Customer touching application; customers use these applications to help themselves. types search and comparison capabilities, technical and other info, customized p&s, FAQ, Email
Components of CRM system
- Operational
- Analytical- provide business intelligence by analyzing cust. behavior &perceptions
CRM tools accomplish the following objectives
-Improve sales and account management by optimizing the information shared by multiple employees and by streamlining existing processes (e.g., taking orders using mobile devices)
-Form individualized relationships with customers, with the aim of improving customer satisfaction and maximizing profits
-Identify the most profitable customers and give them the highest level of service
-Provide employees with the information and processes necessary to know their customers
-Understand and identify customer needs, and effectively build relationships among the company, its customer base, and its distribution partners
CIC?
Customer Interaction Centres- org use multiple channels to communicate with cust.
Difference bet. Upselling and Cross selling
Upselling is when you show a related product that is higher than the price. initail selectionor like warranty when buying a phone. while cross-selling is showing cust. related products based on a previous purchase
What is a form of cross selling that sells a group of product together at a low price than their combined indiv. price
Bundling
What is the actual purpose of Loyalty /reward programs
their actual purpose is not to reward past behaviour, but rather to influence future behaviour
Other types of CRM systems
-On demand; hosted by an external vendor in the vendor’s data centre AKA Software as a service/utility computing
- Mobile; interacting through a phone
- Open source; source code available to developers and users
- Social ; use ofsocial media to engage cust.
- Real time; help org. respond to reviews, ratings
Supply Chain
flow of materials (and services), information, and money from raw material suppliers, through factories and warehouses, to the end customers
Segments of Supply Chain
- Upstream; sourcing or procurement from ext. suppliers occurs
- Internal; packaging , assembling mfg takes place
- Downstream; distribution takes place by ext. distributors
Flow of supply chain
- Material; physical prod.
- Information; data related to demandetc
- Financial; money transfers
The flow of good and info can be
bidirectional . goods returned is called reverse flow or reverse log.
Inventory Velocity
The speed at which products and services are delivered after the materials are received
SCM
The process of planning, organizing and optimizing various activities performed along supply chain (a coy. uses to acquire raw materials)
Components of Supply Chain mgt
- Plan; the strategic comp. of SCM
- Source; choose suppliers
- Make; the mfg component. MOST METRIC INTENSIVE PART OF SC
- Deliver
- Return
What’s the goal of SCM systems
To reduce the problems, friction along supply chain.
SCM is a type of intraorganizational info. system?
No it is a type of interorganizational IS; info that flows among 2or more org.
Describe the Push and Pull model and which is better for SCM
Although many SCM systems use Push model(Make to stock) which is an estimate of what they think consumers will want but Pull model(make to order) is better bc it is based on customers orders, which reduces wastage and all (to avoid uncertainities)
Can Automobile coy use pull model
No it’s complicated and expensive
Problems of Supply Chain
*Friction-Poor Customer Service
*Uncertainties; demad forcast, delivery times
*The need to coordinate multiple activitiesetc.
Bullwhip effect
Erratic shift in orders up and down the SC
Solutions to SC Problems
- Building inventories as insurance against uncertainties; Just in time Inventory- used to minimize inv.
- Info Sharing
Vertical Integration?
When a coy. purchases supplies to ensure essential supplies are available ASAP.
Vendor Managed Inventory(VMI)
The supplier manages the entire inventory instead of the retailer.
Drawback of JIT Inventory system.
replaces a few large supply shipments with a large number of smaller ones, making the transport process less efficient.
Explain the utility of each of the three major technologies that support supply chain management.
- Electronic data interchange(EDI); a comm. standard that allows partners exchange routine doc. then transmits the message over the internet using a converter/ translator
- Extranets; link bus. partners over the internet by giving them access to certain areas of eachother’s corprate intranets.(Collaboration bet. business partners)
- Portals and Exchanges ; enables coy. collaborate closely.
types of portals procurement- a single buyer &multiple suppliers
anddistribution ; single supplier to multiple buyer
Disadvantage of EDI
It may require business processes to be restructured to fit EDI requirements.
Types of Extranets
A company &its dealers; centers on 1 company
Industry Extranets; major players in an industry can create an extranet that will benefit them all
Joint Ventures&partnerships; use as a vehicle for comm. and collaboration.
Which of the portal is the upstream in SC
Procurement
