Module 4: Customer Relationship Management Flashcards
CRM objectives
- Customer Acquisition
- Customer Retention
- Customer profitability
Customer acquisition
Process of gaining new customers by persuading them to purchase a company’s products and/or services
Customer retention
The ability of a company or product to retain its customers over some specified period
Customer profitability
CRM reduces the cost of business and increases profitability. As a rule, winning a new customer’s business takes significantly more time, effort, and marketing resources than renewing or expanding business with an existing customer
Primary Functions of CRM
- Operational
- Analytical
- Collaborative
CRM Process Cycle
touchpoints
Any way a consumer can interact with a business, whether it be person-to-person, through a website, an app, or any form of communication
re-engineering processes
Recreating a core business process with the goal of improving product output, quality, or reducing costs
data mining
The practice of examining large databases in order to generate new information
integrating data
Technical and business processes used to combine data from disparate sources into meaningful and valuable information
data warehouse
A large store of data accumulated from a wide range of sources within a company and used to guide management decisions
data warehousing
Electronic storage of a large amount of information by a business or organization
dashboards
The graphical representation of the data generated by a report (or multiple reports) at a certain point in time
Data integrity
The accuracy and validity of data
viruses
A piece of code that is capable of copying itself and typically has a detrimental effect, such as corrupting the system or destroying data
worms
A type of malicious software program whose primary function is to infect other computers while remaining active on infected systems
data breaches
The intentional or unintentional release of secure or private/confidential information to an untrusted environment
cybercrime
Criminal activities carried out by means of computers or the internet
trojan horses
A type of malicious software designed to spy on the victim’s computer to access files or to extract sensitive data
Benefits of CRM
Improved efficiency
A CRM, apart from organizing information, records, and reports, can automate, streamline, and monitor workflows and activities quickly. CRM systems are also intended to integrate with a broad range of company and office platforms in order to provide superior flexibility. All of these are intended to guarantee that the staff and teams involved function as efficiently as possible and generate optimal outcomes.
Customer focus
A CRM is one of the established means of increasing favorable customer experiences and communication, as it is capable of tracking the connection of an organization with customers on all touchpoints—business website, email, mobile, live chat, tickets, and physical or online store. CRM makes an organization customer-focused and responsive, leading to increased customer retention and prospect conversion. The organization is geared toward a relationship-based enterprise.
Data accessibility
CRM highlights information as the most valuable strategic asset. Integrated CRM systems have instruments for collecting, analyzing, and making sense of customers’ and prospects’ information, so an organization can gather ideas to enhance its services and offerings. The organization can effectively target customer segments, track market effectiveness, expedite the marketing cycle, and improve the use of customer channels. Understanding what information is all about, processing it to filter helpful patterns and indicators, and making it easily accessible to the organization will serve as a guide in offering outstanding services for customers.
Enhanced accountability
With improved workflows and communication between teams and employees, roles can be defined and employees can understand their responsibilities. A CRM can readily recognize weak areas in the customer relationship and can identify the employees accountable. This allows the company to take corrective action and react accordingly.
Common Customer Touchpoints
Key performance indicators (KPIs)
A type of performance measurement. KPIs evaluate the success of an organization or of a particular activity in which it engages
mass marketing
A market strategy in which a firm tries to appeal to the whole market by broadcasting a message that will reach the largest number of people possible
mass production
The production of large amounts of standardized products, including and especially on assembly lines
target market
A particular group of consumers at which a product or service is aimed
market segmentation
The process of defining and subdividing a large homogeneous market into clearly identifiable segments having similar needs, wants, or demand characteristics
Geographic
Country, state, and zip code
Demographic
Age, gender, race, ethnicity, education, and income
Cultural
Country of origin, language, religion, dietary preferences, family structure, and social roles
Psychographic
Values, opinions, attitudes, and lifestyle
Behavioral
How they use products, what benefits they want, how they shop or pay, and their loyalty status
Targeted Marketing
One-to-one marketing
Creating a unique marketing mix for every customer
database marketing
A form of direct marketing using databases of customers or potential customers to generate personalized communications in order to promote a product or service for marketing purposes
