Customer Relationship Management - Lecture 5 Flashcards
According to Buttle 2009, what is CRM?
It is a core business strategy that integrates internal processes and functions and external networks to create and deliver value to targeted customers at a profit
- It is grounded on high quality customer related data and enables by information technology
Why is CRM important?
- U can enhance loyalty if you know what works - needs to be monitored as it changes over time
- Looks at the technological and environmental changes
What has CRM been described as ?
“information-enabled relationship marketing”
What is Operational CRM?
Buttle (2004) defined Operational CRM as “a perspective on CRM which focuses on major automation projects with- in the front-office functions of selling, marketing and service.”
- automates the business processes underpinning the day-to- day tasks of sales, marketing, and service functions across a range of customer touch points and channels
- More IT focused e.g may apply technology to their marketing to help manage the marketing programs
- similarly, service automation allows organisations to automate their service operations, often with the objective of increased customer satisfaction
What is strategic CRM?
Buttle (2004) defined Strategic CRM as “a top down perspective on CRM, which views CRM as a core customer centric business strategy that aims at winning and keeping profitable customers”
- Lin and Su (2003) added that Strategic CRM gives the opportunity to leverage customer knowledge and create value for customers and, in the end, helps organizations to understand and fulfill current and potential customers’ needs.
What did Payne and throw say about strategic crm and its strategies?
Payne and Frow (2005) noted that an important goal in Strategic CRM is to align the broader business strategy with customer strategy.
Whats the general objective of operational CRM?
The general objective of Operational CRM is to improve the efficiency and effectiveness of customer manage- ment processes, by personalizing the relationship with customers, by improving organizational response to customers’ needs (Xu & Walton, 2005) and by increasing the speed and quality of information flows in the organization, and between the organization and its external employees and partners (Speier & Venkatesh, 2002).
What is ECRM?
- Using digital communication technologies to maximise sales to existing customers and encourage continued usage of online services
What are examples of ECRM being used?
- Could use techniques including database, personalised web messages, customer services, email and social media marketing
- May use email for monthly or weekly newsletters
What are the advantages of ECRM?
Individualised CRM (‘one-to-one marketing’) Adopt a range of sophisticated CRM strategies
What are the disadvantages of ECRM?
- Complex and expensive to implement
- May need to redesign, re-teach employees
How can you manage ECRM? Li and Bernoff 2011
Listening: developing an analytics capability enabling you to monitor social conversations – e.g. software identifying when your brand is mentioned, use of hashtags – listening to what is being said about the company
Talking: improving customer engagement capabilities that enable you to respond to what you’ve heard - e.g. Facebook, Twitter – resolve the issues through constant communication
Energising: harnessing the power of your best customer to be active advocates for your brand – e.g. creating strong relations with bloggers-opinion leaders – Benefit from working with the customer =, building relationshios
Support: using social channels to help customers help themselves and others via collaborative and cooperative behaviors across social media – e.g. use Twitter for Q&A’s – Help the customers, they could help others with a similar issue. Collaborative cooperative behaviour
- Embrace: involve customers in the development and tailoring of your products – e.g. Nike, Converse – cocreating value, embracing involvement of the customer
