Chapter 11 Flashcards
Customer Relationship Management (CRM)
A strategy focused on meeting customer needs and delivering high-quality, responsive services
CRM Importance
Build Customer Relationship
Helps Meet Customer Needs
Help Retain Customers
Customer Touchpoint
Any interaction between a customer and an organization
Customer Touchpoint Examples
Smartphone
Computer
Physical Store
Email
Data Consolidation Methods
Collaborative CRM System
Customer Identity Management
Collaborative CRM System
Integrates communications between the organization and its customers across marketing, sales, and customer support
Customer Identity Management
A marketing technology that creates a complete 360° view of a customer across an organization
Operational CRM Systems
Supports front-office processes
like sales, marketing, and customer service, which directly interact with customers
Front-office processes
Processes that directly interact with customers, such as sales, marketing, and service
Customer-facing CRM applications
Areas where customers directly interact with the organization
customer service, sales force automation, marketing, and campaign management
Customer Interaction Centre (CIC)
Representavies interact with customers through communcation channels
Sales Force Automation (SFA)
A part of operational CRM that automatically records all aspects of the sales transaction process
Cross-selling
Marketing additional related products to customers based on a previous purchase
Upselling
Salesperson suggest you buy something of greater value than the original
Bundling
Sells a group of items together for less money than buying separately
Customer-Touching CRM Applications
Applications and technologies that customers interact with and typically help themselves
Customer-Touching CRM Methods
Customized Products
Loyalty Programs
Loyalty Programs
Programs that offer rewards to customers to influence their future behavior
Analytical CRM System
A CRM system that studies how customers act and feel to give helpful insights for business intelligence
On-demand CRM system
A CRM system hosted by another company
Mobile CRM system
CRM system that lets sales, marketing and customer service interact with customers through mobile devices
Open-source CRM system
CRM software whose source code is accessible to developers and users for modification and customization
Social CRM
Using social media to talk with customers and work together in a way that’s open and helpful for both sides
Real-time CRM system
A system that helps businesses reply quickly to customers anytime, like when they search for products or leave reviews
Supply chain
The coordinated movement of resources from organizations through production to the end consumer
Supply chain visibility
The ability of all organizations in a supply chain to access or view relevant data on materials as they move through production processes
Supply Chain Three Segments
Upstream
Internal
Downstream
Upstream
Where a company gets its materials or products from other companies.
It includes choosing where to get the items, keeping track of them, checking that they are shipped correctly, sending them to be made into products, and paying for them
Internal
Where things are made, put together, or packaged
Workers plan what to make, check if it’s done right, and make sure everything is going smoothly
Downstream
Where products are sent to customers
People in charge make sure orders are delivered, manage storage, choose how to ship the products, and make sure customers pay
Supply Chain Three Flows
Material Flows
Information Flows
Financial Flows
Material Flows
These are the physical products, raw materials, and supplies that move through the supply chain, including reverse flows (e.g., returns or recycling). This flow covers the product life cycle from production to disposal
Information Flows
These involve data related to demand, shipments, orders, returns, schedules, and any changes to these details. They help ensure that the supply chain operates smoothly and efficiently
Financial Flows
These include money transfers, payments, credit card information, payment schedules, and e-payments. Financial flows track the monetary aspect of the supply chain
Supply Chain Management (SCM)
The process where a company’s leaders oversee the supply chain, manage relationships, and use them to gain a competitive edge
Interorganizational Information System (IOS)
A system that helps share information between two or more organizations
Push Model
Company makes products based on guesses about what customers will want. They produce the items first and then try to sell them
Pull Model
A business model where production starts only after a customer places an order, and companies make just what the customer wants. This is linked to mass customization
Supply Chain Problem
Bullwhip Effect
Bullwhip effect
Erratic changes in orders up and down the supply chain
Solutions to Supply Chain Problem
Vertical integration
Just-in-time (JIT)
Vertical integration
A strategy where a company buys upstream suppliers to ensure timely availability of supplies
Just-in-time (JIT)
An inventory system where suppliers deliver parts exactly when needed for assembly
Vendor-managed inventory (VMI)
An inventory strategy where the supplier monitors and replenishes a vendor’s product stock when needed
Electronic Data Interchange (EDI)
A communication standard that allows business partners to transfer routine documents electronically
Electronic Data Interchange (EDI) Benefits
Minimizes data entry errors
Shorter messages
Secured messages
Reduces cycle time
Increases productivity
Enhances customer service
Minimizes paper usage and storage
Extranet
A private network that lets other companies or people work with your company by sharing information
Extranet Infrastructure
Extranets use VPN technology for secure communication over the internet between external partners and the company
Extranet Types
Company and Its Dealers, Customers, or Suppliers
Industry Extranet
Joint Ventures and Other Business Partnerships:
Company and Its Dealers, Customers, or Suppliers
An extranet for a single company to allow external users, like customers or suppliers, to access specific data. Example: FedEx for tracking deliveries
Industry Extranet
An extranet for multiple companies in the same industry to exchange business information. Example: OpenText for secure B2B transactions
Joint Ventures and Other Business Partnerships
An extranet for partners in a joint venture to communicate and collaborate. Example: Bank of America’s extranet for commercial loans
Procurement Portals
Portals that automate purchasing processes between a buyer and multiple suppliers
Distribution Portals
Portals that automate selling and distribution processes from a supplier to multiple buyers
