UNIT 3

Question 1

CRM

Answer 1

Customer Relationship Management

Who sells the most products and services –> who “owns” the customer

The customer relationship- a firms most valuable asset

Question 2

CRM helps to:

Answer 2

• information on a specific customer might be stored and organized in terms that make it useful for the company

(contact info, shipment preferences, previously bought etc)

CRM helps companies to consolidate all of this information to provide a unified view of a customer across the company

Question 3

Firms use CRM to:

Answer 3

• Acquire new customers
• Provide better service and support to existing customers
• Customize their offerings more precisely
• Provide ongoing value to retain profitable customers.

Question 4

CRM systems

Answer 4

• examine customers from a multifaceted perspective

Marketing-Sales-Feedback-Support

Question 5

PRM

Answer 5

Partner relationship management

Automation of the firm’s relationships with its selling partners using customer data and analytical tools to improve coordination and finally increase customer sales.

Question 6

ERM

Answer 6

Employee relationship management

Software dealing with employee issues, such as setting objectives, employee performance management, performance based compensation, and employee training.

Question 7

SFA

Answer 7

Sales Force Automotation

Sales force automation modules in CRM systems help sales staff increase their productivity by focusing sales efforts on the most profitable customers.

Question 8

SFA provide

Answer 8

• Sales prospect
• Contact information
• Product information
• Product configuration capabilities
• Sales quote generation capabilities
• Particular customer’s past purchases

Question 9

Customer service modules in CRM

Answer 9

This systems provide information and tools to increase the efficiency of call centers, help desks, and customer support staff. They have capabilities for assigning and managing customer service requests.

Example:
Appointment or advice telephone line: when a customer calls, the system routes the call to the correct service person, which inputs information about that customer into the system only once.
–>

Once the customer’s data are in the system, any service representative can handle the customer relationship.

Call centers and customer service groups achieve greater productivity, reduced transaction time, and higher quality of service at lower cost—–happier clients

Question 10

CRM systems support direct-marketing campaigns by providing:

Answer 10

• Prospect and customer data
• Providing product and service information
• Qualifying leads for targeted marketing
• Scheduling and tracking direct-marketing mailings or e-mail campaigns
• Manage and execute marketing campaigns at all stages, from planning to determining the rate of success for each campaign.

Question 11

Cross-selling

Answer 11

The marketing of complementary products to customers. (For example, in financial services, a customer with a checking account might be sold a money market account or a home improvement loan.)

Question 12

Up-selling

Answer 12

Offer augmented products to clients after analyzing their preferences

Question 13

Operational CRM

Answer 13

Includes customer oriented applications ( tools for sales force automation, call center and customer service support, and marketing automation)

Question 14

Analytic CRM

Answer 14

Includes applications (like data mining) that analyze customer data generated by:

• operational CRM applications from the company.
• data from other sources (customer lists for direct-marketing campaigns purchased from other companies or demographic data).

Question 15

CLTV

Answer 15

customer lifetime value

Analysis based on the relationship between the revenue produced by a specific customer, the expenses incurred acquiring and servicing that customer, and the expected life of the relationship between the customer and the company.

Question 16

OLAP

Answer 16

Online Analytical Processing

Question 17

An effective CRM system helps companies:

Answer 17

• Increase customer satisfaction
• Reduce direct-marketing costs (more efficient campaigns)
• More effective marketing
• Lower costs for customer acquisition and retention
  Increases sales revenue
• Apply cross-selling strategies
• Identifying the most profitable customers and segments for focusing the marketing (segmentation)
• Customer churn* is reduced as sales, service, and marketing better respond to customer needs

Question 18

Components of CRM cycle

Answer 18

1- Understand and Differentiate.
2- Develop and Customize.
3- Interact and Deliver.
4- Acquire and Retain.

Question 19

Understand and differentiate

Answer 19

• Organizations need to understand their customers.
• Profiling to understand demographics, purchase patterns and channel preference.
• Primary research to capture needs and attitude.
• Customer valuation to understand profitability, as well as lifetime value or long-term potential.
• The ICICI Group’s customers need to see that the firm is differentiating service and communications, based on their learning independently and on the customer expectation and the expected values expected

Question 20

Develop and customize

Answer 20

• In a customer-focused world, product and channel development has to follow the customer’s lead, identify customer’s wants, determine the value and desire of the customer, etc.
• Organizations are increasingly developing products and services, and even new channels based on customer needs and service expectations.
• ICICI believes that the extent of customization should be based on the potential value delivered by the customer segment.

Question 21

Interact and deliver

Answer 21

To foster relationships, organizations need to insure that:

• All areas of the organization have easy access to relevant, actionable customer information.
• All areas are trained how to use customer information to tailor interactions based on both customer needs potential customer value.

ICICI is strongly of the opinion that value is not just based on the price of the product or the discounts offered but are based on a number of factors including the quality of products and services, convenience, speed, ease of use, responsiveness, and service excellence.

Question 22

Acquire and retain

Answer 22

• The more ICICI learns about customers, the easier it is to choose those that are producing the greatest value for the organization.
• They aim to continue to learn more about each customer segment and use it for successful customer retention.
• As ICICI moves step further in CRM they hopes to gain insight and understanding that enhance the subsequent efforts.

Question 23

Implementing CRM

- five interrelated areas

Answer 23

Business Focus.
Organizational Structure.
Business Metrics.
Marketing Focus.
Technology.

Question 24

Key drivers to customer loyalty

Answer 24

1. Positive staff attitude
2. Honesty integrity and reliability
3. Proactive Advice
4. Consistent delivery of superiority quality service
5. After sale service
6. An effective complaints resolution policy

Question 25

Benefits of effective CRM

Answer 25

• Reduced costs, because the right things are being done (ie., effective and efficient operation)
• Increased customer satisfaction, because they are getting exactly what they want
• Ensuring that the focus of the organization is external
  Growth in numbers of customers
• Maximization of opportunities (eg., increased services, referrals, etc.)
• Increased access to a source of market and competitor information
• Long term profitability and sustainability
• Customer’s usage pattern
• New product development
• Central data management