Chapter 11 - Customer Relationship Management and Supply Chain Management Flashcards
What is customer relationships management?
A customer focused and customer driven organizational strategy that concentrates on addressing customers requirements for products and services, and then providing high quality responsive services.
What are the two basic elements of a successful CRM?
- The company must identify the many types of customer touch points
- It needs to consolidate data about each customer.
What is customer churn? What is the optimal result of a CRM effort?
Over time, all organizations inevitably lose a certain percentage of customers. To maximize the number of high value repeat customers, while minimizing customer churn.
What is an organizations overall goal?
Shift from conducting business transactions to managing customer relationships. Maximize the life time value of a customer, which is that customers potential revenue stream over a number of years.
Why is customer relationships management so important?
Organizations recognize that customers are at the centre of a successful enterprise, and to be successful they must focus on them.
What is a touch point?
Any interaction between a customer and an organization.
What are examples of traditional customer touch points?
- Telephone contact
- Direct mailing
- Actual physical interactions
What are examples of new customer touch points?
- Websites
- Communications through the smart phone.
What is market capitalization
The number of shares of the company’s stock outstanding multiplied by the price per share of the stock.
What is a low end CRM system?
CRM systems designed for enterprises with many small customers
What is a high end CRM system?
CRM systems designed for enterprises with few very large customers.
What type of system does Amazon use?
Low end system, to recommend products to returning customers.
What type of system does Bently Use?
High end system, to increase lead generation and enhance the brand experience for customers.
What are organizational CRM systems?
The component of CRM that supports front office business processes that directly interact with customers
What are front office processes?
Those processes that directly interact with customer. Like sales, marketing, and services.
What are the two major components of operational CRM?
- Customer facing applications.
- Customer touching applications.
What are the benefits of an organizational CRM system?
- Efficient, personalized marketing, sales, and service.
- A 360 degree view of each customer.
- The ability for sales and service employees to access a complete history of a customers interactions with the organization, regardless of the touch point.
What objectives are CRM tools used to reach?
- Improve sales and account management by optimizing the information shared by multiple employees and streamlining existing processes.
- Form individualized relationships with customers, with the aim of improving customer satisfaction and maximizing profits.
- Identify the most profitable customers and given 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 based, and its distribution partners.
What are customer facing CRM applications?
Areas in which customers directly interact with the organization, including customer service and support, sales force automation, marketing, and campaign management.
What are customer interaction centres (CIC)
A CRM operation in which organizational representatives use multiple communication channels to interact with customers in functions such as inbound tele service and outbound telesales.
What is a call centre?
A centralized office set up to receive and transmit a large volume of requests by telephone.
What are customer touching CRM applications/ electric CRM?
Applications and technologies with which customers interact and typically help themselves.
What is sales force automation?
The component of an operational CRM system that automatically records all the aspects of a sales transaction process.
What is a contact management system?
Tracks all communications between the company and customers, the purpose of each communication, and any necessary follow ups.
What does contact management systems eliminate?
Duplicated contacts and redundancy, which in turn reduces the risk of irritating the customer.
What is a sales lead tracking system?
Lists potential customers or customers who have purchased related products. Products similar to those that the sales person is trying to sell to the customer.
What is a sales forecasting system?
Mathematical technique for estimating future sales.
What is a product knowledge system?
Comprehensive source of information regarding products and services.
What are configurators?
Enable customer to model a product to meet their specific needs.
What is data mining?
The process of sifting through volumes of customer data
What is a purchasing profile?
A snap shot of a customers buying habits that may lead to additional sales through cross selling, upselling, and bundling.
What is cross-selling
The marketing of additional related products to customers based on a previous purchase. If you have a checking accounts, banks will get you to open a GIC.
What is up-selling
A strategy in which the sales person provides customers with the opportunity to purchase related products or services of greater value in place of, or along with, the customers initial product or service selection.
What is bundling?
A form of cross selling in which a business sells a group of products or services together at a lower price than their combined individual prices.
What are campaign management applications?
Helps organizations plan campaigns that send the right message to the right people through the right channel.
What are loyalty programs?
Programs that offer rewards to customers to influence future behaviour.
What are analytical CRM systems?
CRM systems that analyzes customer behaviour and perceptions in order to provide actionable business intelligence.
What is the purpose of analytical CRM systems?
- Design and execute targeted marketing campaigns.
- Increase customer acquisitions, cross selling, and up selling.
- Providing input into decisions relating to products and services.
- Providing financial forecasting and customer profitability analysis.
What is an example of an analytical CRM technology?
- Data mining
- Decision support
- Business Intelligence
- Online Transaction Processing Systems.
What are the different customer touching applications?
- Search and comparison capabilities
- Technical and other information and services
- Customized products and services
- Personalized Web Pages
- FAQ’s
- Email and Automated Responses
- Loyalty Programs
Describe the search and comparison capabilities
It is difficult for customers to find exactly what they want from a vast array of products and services on the web. Companies provides customers with search and comparison capabilities to find exactly what they are looking for.
Describe the technical and other information and services
Organizations offer personalized experiences to induce customers to make purchases and remain loyal. Allows customers to download product manuals.
Describe the customized products and services
Mass customization where customers can configure their own products. Like how Dell allows the customers to configure their own computer systems, Melanie Lynn allows customers to mix and match, and Indochino enables customers to fully customize clothing items.
You are also able to check account balances or shipping status of orders any time and from any device.
What are personalized web pages
The customers can design the webpage however they want, and to record purchases and preferences, as well as problems and requests.
What are FAQ’s?
Simple tool for answering repetitive customer queries. They can find information without having to interact with another person.
What are email and automated responses?
Popular tool for customer service. It is cheap fast, and they can answer questions, disseminate information, alerts, and surveys.
What are examples of channels used by CIC?
Telephone, web, face to face, fax
What is omnichannel marketing?
An approach to customers that creates a seamless experience regardless of channel used to touch the business.
True or False: Customer relationships management is not a technology or a process, but rather it is a customer centric way of thinking
True
What is one of the biggest issues with managing relationships?
The lack of time or information.
Describe the CRM process
- Marketing efforts, where we solicit prospects from a target population of potential customers..
- A certain number of these prospects will make a purchase and become a customer.
- A certain number of these customers will become repeat customers.
- The company will segment the customers into high and low value repeat customers
- The company will maximize the lifetime value of a customer.
What is the simple concept that CRM follows?
Treat different customers differently because their needs differ and their value to the company also differs.
What is the result of a successful CRM?
- Improve customer satisfaction.
- Make the company’s sales and services employees more productive.
What is a CRM system?
Information system designed to support an organizations CRM strategy. To have good customer relationships we must have good CRM systems.
What are examples of customer touch points
- Call centre
- Direct Mail.
- Web.
- Smartphone
- Service Center
- Computer.
- Sales Rep
- Field Service technician.
- Physical store
What is a collaborative CRM system?
A method of data consolidation. A CRM system in which communications between the organization and its customers are integrated across all aspects of marketing, sales, and customer support processes.
What is customer identity management?
A marketing technology intended to complete a 360 degree view of a customer across an organization.
What are five other types of CRM systems?
- Open
- Mobile
- Social
- Real Time
- On Demand
Describe the history of the implementation of the CRM systems
There is the ability of both the on premise and on demand implementation. On premise meant that they purchased the system from the vendor and installed it onto their systems. These were expensive, inefficient, and time consuming and could not be justified by both the customers who purchased them.
What is an on demand system?
A CRM system that is hosted by an external vendor on the external vendors systems.
What are the benefits of the on demand CRM system?
Spares organizations the heavy burden costs of on premise decisions.
What is an example of an on-demand CRM vendor? What do they do.
Sales force. They keep the customer relationships between Telus and the clients of Telus. Salesforce representatives go around and sign clients up, allowing them to complete key parts of the sales process while they are on the road.