Chapter 6 Flashcards
A customer driven organization aims to achieve what?
Customer identification, differentiation, and interaction
What is a business and technology discipline for managing customer relationships to optimize revenue, profitability, customer satisfaction, and customer retention?
Customer relationship management (CRM)
What is a method of interaction with the customer such as phone, email, etc?
A touch point
What is a set of integrated applications to address all aspects of the customer relationship, including sales, marketing, and service?
A CRM system
What are the three phases in the evolution of CRM?
Reporting, analysis, and prediction
What supports transactional processing for day-to-day front-office operations?
Operational CRM
What supports back-office operations and strategic analysis?
Analytical CRM
What is the process of tools that shift through data, looking for trends, patterns and correlations?
Data mining
What compiles customer info from a variety of sources (websites, surveys) and organizes it (household income, age) for different marketing campaigns?
A list generator
A system that automatically tracks all of the steps in the sales process is a…
Sales force automation (SFA)
What automates each phase of the sales process, helping sales representatives coordinate and organize their accounts?
Sales management CRM system
What maintains customer contact info and identifies prospective customers for future sales?
Contact management CRM system
What targets sales opportunities by finding new customers or companies for future sales?
Opportunity management CRM system
What is the place where customer service reps answer customer inquiries and respond to problems through touch points?
Contact centre (call centre)
What allows customers to use the web to find answers to their questions or solutions to the problems?
Web-based self-service system
What type of CRM can help find new customers similar to your best customers and reactivate inactive customers?
Analytical CRM
What allows companies to measure the effectiveness of marketing campaigns?
Marketing analytics
What provides key performance indicators and customizable dashboards?
Sales analytics
What are the CRM best practices?
- clearly communicate the CRM strategy
- define information needs and flows
- build an integrated view of the customer
- implement in manageable pieces
- ensure the system can support future growth
- protect customer privacy
What are the 8 building blocks of CRM best practices?
1) Creating a CRM vision that provides a picture of what the customer-centric organization should look like
2) defining and weaving a CRM strategy that aligns with broad marketing and sales strategies
3) understanding and engaging the customer
4) ensuring organizational collaboration between internal groups and external partners
5) improving customer processes
6) achieving data integrity across the company
7) leveraging info systems to implement CRM
8) defining, collecting, and analyzing CRM
What are the two limitations of CRM?
1) CRM is firm centric (only relies on interactions of the customer with the firm)
2) limited predictive ability (some events are unforeseeable)
