CRM topic 1-5 Flashcards
Customer Relationship Management
1) Definition
2) How does it relate to business
1) CRM is business strategy that focuses on customer acquisition, retention & development to improve business relationships.
2) Helps to coordinate sales & marketing functions using systematic processes that are standardized across the organization
5 Benefits / Purpose of CRM
EBSCK
1) Enhanced unified communication
- Communicate on its own using (AI) etc. MsTeams
- Draft, send emails directly from CRM
- Templates & frequency is managed to maintain quality of communication
etc. customer complaints centre
2) Better data organisation
- Customers are catogorised according to their value to the organisation
etc. loyal customers, lost customers
- So, organisation can determine the amount of resources to devote in these customers
- Different use system differently hence CRM system have to be dynamic
3) Share information
- The same information can be shared in real-time
CRM’s are able to track the entire life of the relationship with the customer regardless of changes to the company’s employees or the customer’s employees
- Input of data can be by multiple sources > richer data > better understanding
4) Catch all leads [ capture all opportunity ]
- Lesser chance customers are overlooked > potential as paying customer is not developed
- Response can be directed to appropriate contact person within organisation to follow-up effectively etc. Mandarin speaker can direct to this ….
Know your numbers [ focus on goals & how to achieve them ]
- With performance data, teams can make informed forecasts and predictions > planning strategies ahead
- Data provide insights into workflows and aids collaborative work amongst teams within the organization
Importance of knowing 4 stakeholders
- Bringing about greater efficiencies in managing customers through improving the synergy of various departments within the organization
- Understand the role of each stakeholder & the value they bring to having a common pattern
Implications of CRM and Top management
1) Top management
- Highest level of organisation : responsible for overseeing the organisation, conceptualizing key strategies, control of entire organisation
+ Determine strategic direction
+ Clearer direction set by management > easier to unify resources > work towards goal
+ Clarify goals and facilitate communication
+ Collects data from departments to form a boarder perspective of organisation performance
Customer Value : 5 customer lifetime value
[ HPLCI ]
1) Historic CLV
2) Predictive CLV
3) Lifespan CLV
4) Cohort CLV
5) Individual CLV
5 ways to create value proposition
1) Make value/price ratio bigger etc. add in free gift / extra service > customers feel appreciated
2) Make services/products easy to buy etc. delivery, paywave
3) Create UNIQUE value proposition: why they should buy your product over the competition
4 )Work on brand
5) Provide stellar customer service
Definition of value creation
giving something valuable to receive something else that’s more valuable to you.
Elements value pyrmaid : functional
1) Save times - saving time in tasks that are meaningful to users
2) Avoid hassles - reducing hassle fr customers etc. prep food
3) Integrate - serves many function etc. handphone
4) Variety - high/low end hotels
5) Quality - high quality services / food etc. airplane
6) Sensory Appeals - appealing in taste, smell, hearing and other senses etc. disney themepark enhance experience
7) Connects - connecting people of same interest / enthusiast from all around the world
8) Reduce effort - AI lights / fridge that have spotify songs
9) Reduce risks - reduces losses etc insurance
10) Simplifies - reducing complexity and simplifying etc. paylah/paywave
Elemants value pyramid : emotional
1) Nostalgia - helping people remind smth positive of the past etc. disney attractions appeals to all age groups
2) Rewardsme - providing benefits to loyal customers
3) Reduces anxiety - assurance providing comfort etc. clinic / security in place
4) Wellness - improving mental state
5) Therapeutic - providing therapeutic value
6) Badge value - representing achieved status / bragging rights etc. SIA
Elements value pyramid : Life-changing
1) Motivation - spurring people to achieve their goals etc. running / study playlist on spotify
2) Provide hope - optimistic about etc. treatments / health supplements / weight loss product to improve health and fitness
3) Self-actualisation - a sense of accomplishment etc. bloodbank
4) Affiliation - helping people to be part of a group with people they admire etc. suicide community
5) Heirloom - a good investment for future generation
Elements value pyramid : Social Impact
1) Self-transcendence - helping other people / society more broadly
1) Marketing Strategies
2) Marketing Plans
1) What are the goals / What to achieve
It is the long term planning of business objectives that the company wants to achieve.
2) How to achieve them
Implication of CRM and marketing
2) Marketing department [ process ]
- Building awareness to potential customers
- Coordinate and produce materials that represent the organization on various communication platforms
- Reach out to prospects and customers on platforms to present the organisation in a positive light with the ultimate goal to drive sales
+ Marketing department must have extensive knowledge of target market’s wants and needs and buying behaviour > CRM provide trends / data to facilitate predictions
+ CRM provide more certainty about allocation of limited resources to yield best results for every marketing dollar spend
+ Data can serve as a historical record of activities launch, results achieved and markets targeted even though individual marketing team members have left the organization.
Implications of CRm and sales
3) Sales department [ convincing customers to buy
- Make direct contact with prospective customer or qualified customer to drive sales
- Motivated to close deals : establish trusting relationships
+ Feeds large amount of information into CRM system because they have the closest contact with customers
+ CRM helps sales person to organise interactions in a central system
+ Similarly to marketing department, if one team member leaves, there is continuity in service in servicing the customers seamlessly
Implication of Crm and customers
4) Customers [ lifeline of business ]
- Source of CRM data
- Customers know organisation captures data to serve them better: exception and trust that organisations will not misuse their data for one sided gain
- Strengthen the accountability of organisations by including a mandatory data breach notification requirement
- Enable meaningful consent for the collection, use, and disclosure of personal data
- Provide greater consumer autonomy over personal data by introducing a new data portability obligation and increasing protection from unsolicited messages
- Strengthen the effectiveness of the enforcement efforts of the PDPC by providing for an increase in the cap on financial penalties
