Week 3 Flashcards
CRM SYSTEM
Means of amanging all aspects of a customers relationship with an organisation to endeavour to increase customer loyalty and retention and an organisations profitability
allows identification pattens and create marketing strategies
Importance of Customers
Considered as experts because business cannot exist without customers
How does CRM help business
find most valuable customers throug RFM formula
RFM formula
Recency, frequncy and monetary value
Component of CRM
Opperational CRM
Analytical CRM
Operational CRM
Direct interaction with customers
Analytical CRM
used to analyse customers and make decisions
dig deep into companys historical information
expose patters of behaviour which can be capitalize
enhance and support decision
relies on data warehousing and business intelligence
Marketing Operational CRM
List generator
campaign management systems
cross selling and up selling
List generator
compiles customer information from variety of sources
segment information
Campaign management systems
guide users through marketing campaigns
Cross selling
selling additional products or services
Up selling
increasing the value of the sale
Sales Operational CRM
Sales Management CRM systems
Contact management CRM Systems
Opportunity management CRM systems
Sales Management CRM Systems
Automates each phase of the sales process
help organanize sales account
Contact Management CRM Systems
Maintains customer contact information and identifies prospective customers for future sales
Opportunity Management CRM system
Targets sales opportunities by finding new customers or companies for future sales
Customer Service Operational CRM
Contact centre
Web based self service
Call scripting
Contact centre
customer service representatives answer inquiries
Web-based self service
use web to find answers
Call scripting
access organisational databases that track similar issues and automatically generate the details of the CSR who can then relay them to the customer
Social CRM (SCRM)
Social Media +
CRM systems
Social media
Technologies used in the social web for social interaction
How can SCRM support Analytical CRM
storage and analysis of structured and unstructured social media data
analysis of social media content (opinion, influencer)
analysis of connections between postings and tracking of authors across several social media (forums, reddit)
How can SCRM support Operational CRM
Support sales and transaction activities (social media advertising)
provide channels for customer inreaction
support customer service and after sales
respond to reviews on social networks
answering customers requests
involving of partners where forums are used to discuss problems and issues
Supply chain management
refers to the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability
supply chain
all parties involved directly or indirectly in obtaining raw materials or a product
Supply Chain Process
Procurement
Manufacture
Package and move products
Upstream supply chain
PROCUREMENT
Activities of a company and their connections with their suppliers
Value Chain
OPERATIONS, MANUFACTURING, INVENTORY CONTROL
Internal supply chain
All inhouse processess used in transforming the inputs received into the orgnanisations outputs
Downstream supply chain
DISTRIBUTION, WAREHOUSING, LOGISTICS, AFTER SALE SERVICE
delivery products to retailers
IT Role in Supply Chain
creating integration of business process and information between
customers
suppliers
transportation providers
Supply Chain planning system (SCP)
uses advanced mathematical algorithms to improve the flow and efficiency of the supply chain while reducing inventory
Supply Chain Execution system (SCE)
automates the different steps and stages of the supply chain
increase visibility and provide real time data to demand and needs
can help increasing profitability
SCM MEtrics
Backorder
Customer order promised cycle time
Customer order actual cycle time
Inventory replenishment cycle time
Inventory turns (inventory turnover)
Back order
an unfilled customer order
Customer Order Promised cycle Time
the gap between purchase order creation date and the requested delivery date
Customer order actual cycle timie
Average time taken to fulfill customers order
Inventory Replenishment cycle time
manufacturing cycle time + time of deployment of product to distribution centre
Inventory Turns
Inventory turnover/ cycles for a company per year
Issues with Supply Chain
Globalization of manufacturing operation (need global network)
Safety and quality of products
Shorter lead time, less inventory and better throughput (need lean product strategy)
e business
conducting business on the internet
buying + selling + serving customers + collaborate with partners
e business model
plan to conduct e business
b2b, b2c, c2c, c2b
B2B
Business to business
buying and selling each other over the internet i.e. e marketplace
E Marketplace
interactive business communities providing a central market where multiple buyers and sellers can engage in e biz activities
Goal of e-marketplace
increase efficiency by tightening and automating relationship between buyers and sellers
B2C
business that sells to customers over the internet
e shop
b2c model
online retail
Pure play (b2c)
Virtual business , no physical store i.e. amazaon.com
clicks and mortar business (b2c)
physical store and internet i.e. ikea
e mall
consists a number of e shops
C2B
customer selling to business i.e. istockphoto.com
C2C
customer selling customer
sites offering goods and services to assist consumers interacting with each other over the internet
Generating income via e business
Content provider (digital content ->itunes)
Infomediaries (specialized information)
Online marketplace (bring together buyers and sellers)
Portals (google)
Service providers (youtube)
Transaction progers (rakuten)
E business Revenue models
Advertising Fee
License Fee
Subscription Fee
Transaction Fee
Advertising Fee benefit
well targeted -> value adding
easy to implement
Advertising Fee Challenges
Limited revenue potential
Overdone can be poorly targeted
License Fee Benefits
creates incentives to do many transactions
participants are locked in
License Fee Challenges
Upfront fee is a barrier
Price differentiation is a challenge
Subscription Fee benefits
Creates incentives to do a transaction
Price can be differentiated
ay build additional revenue from new user groups
Subscription Fee Challenges
Fixed barriers to entry for participants
Transaction fees Benefits
Tied to savings
revenue source when trx volume is reached
Transaction fees Challenges
process savings must be visible
decrease with time
Advantages of e business
Expand global reach
access to real time information
opening new markets
reducing costs (office, less humans)
improving operations
improving effectiveness
