CRM Flashcards
What does CRM stand for?
Customer Relationship Management
What are the main goals of CRM?
Acquire new customers, retain existing ones, and enhance customer relationships
What is customer intimacy in CRM?
Personalized interactions to foster customer loyalty
Define Operational CRM.
Supports day-to-day customer interactions (front office) through automation
Define Analytical CRM.
Analyzes customer data for insights, mainly for back-office use
What is a Customer-Facing CRM System?
A CRM system where employees directly interact with customers
What is a Customer-Touching CRM System?
A CRM system where customers interact with technologies (e.g., FAQs)
What does RFM stand for in CRM?
Recency, Frequency, Monetary value
What does ‘Recency’ refer to in RFM?
The time since a customer’s last purchase
What does ‘Frequency’ measure in RFM?
How often a customer makes purchases
Define ‘Monetary Value’ in RFM.
Amount a customer spends on purchases
Name two traditional CRM touchpoints.
Phone and physical store visits
Name two digital CRM touchpoints.
Websites and email
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Key components of a CRM system?
Sales, Marketing, Service
What is Sales Force Automation (SFA)?
A system that automates sales processes and tracks transactions
What does CRM cross-selling mean?
Marketing additional products based on a customer’s past purchases
What is CRM upselling?
Offering higher-value or premium options to customers
Define bundling in CRM.
Selling a group of products together at a discount
What is a CIC in CRM?
Customer Interaction Center for multi-channel customer support
What are the three phases of CRM evolution?
Reporting, Analysis, Prediction
What question does CRM Reporting answer?
“What happened?”
What question does CRM Analysis answer?
“Why did it happen?”
What question does CRM Prediction answer?
“What will happen?”
Define CRM campaign management.
Planning and managing marketing campaigns to target customers
How does CRM segment customers?
By analyzing Recency, Frequency, and Monetary value (RFM)
Name a key CRM sales metric.
Revenue per customer
Name a key CRM marketing metric.
Campaign response rate
What is a critical CRM service metric?
Customer retention rate
How does AI assist with CRM insights?
By analyzing customer behavior and buying patterns
What CRM function does AI-powered chatbots support?
Automated customer support
Define sentiment analysis in CRM AI.
Analyzing customer feedback to gauge satisfaction and sentiment
How does AI enhance CRM lead scoring?
By predicting conversion likelihood based on attributes
What routine tasks can AI automate in CRM?
Data entry, scheduling follow-ups, updating customer information
What is the role of a CRM data warehouse?
Stores customer data for analysis and insights
Define ‘customer churn’ in CRM.
When customers stop doing business with the company
Why is it more costly to acquire a new customer than retain one?
It requires 5-10x the effort and resources
What is a CRM loyalty program?
A program that rewards repeat purchases to increase loyalty
What is personalized marketing in CRM?
Tailoring marketing based on individual customer profiles
How does a 360-degree view benefit CRM?
It provides a complete view of each customer’s interactions
