On-demand CRM systems are those hosted by an external vendor in the vendor's data center. Advantages of on-demand CRM systems include lower costs and a need for employees to know only how to access and use the software. Drawbacks include possibly unreliable vendors, difficulty in modifying the software, and difficulty in integrating vendor-hosted CRM software with the organization's existing software. Show Mobile CRM systems are interactive systems through which communications related to sales, marketing, and customer service activities are conducted through a mobile medium for the purpose of building and maintaining customer relationships between an organization and its customers. Advantages of mobile CRM systems include convenience for customers and the chance to build a truly personal relationship with customers. A drawback could be difficulty in maintaining customer expectations; that is, the company must be extremely responsive to customer needs in a mobile, near-real-time environment. Open-source CRM systems are those whose source code is available to developers and users. The benefits of open-source CRM systems include favorable pricing, a wide variety of applications, easy customization, rapid updates and bug (software error) fixes, and extensive free support information. The major drawback of open-source CRM systems is quality control. Social CRM is the use of social media technology and services to enable organizations to engage their customers in a collaborative conversation to provide mutually beneficial value in a trusted and transparent manner. "Real-time CRM means that organizations are able to respond to customer product searches, requests, complaints, comments, ratings, reviews, and recommendations in near real-time, 24/7/365."
Terms in this set (65)Customer Relationship Management (CRM) Customer relationship management is the core business strategy that integrates internal processes and functions, and external networks, to create and deliver value to targeted customers at a profit. Single view of the customer (SVOC) Integrates all customer data from sales, marketing, service and accounts, to create a coherent picture of the customer's interactions with the business. Types of CRM Strategic CRM Strategic CRM Core customer-centric business strategy that aims at winning and keeping profitable customers. Operational CRM Focuses on automation of customer-facing processes such as selling, marketing, and customer service. Analytical CRM The process through which organizations transform customers-related data into actionable insight for either strategic or tactical purposes. What can a good CRM program deliver? Increased frequency from existing customers. 4 different aspects of CRM o
Product-oriented businesses Benefits of analytical CRM Customers - analytical CRM can deliver timely, customized, solutions to the customer's problems, thereby enhancing customer satisfaction. Company - analytical CRM offers the prospect of more powerful cross-selling and up-selling programs, and more effective customer retention and customer acquisition programs. Customer retention Means how the business can keep an ongoing profitable relationship with the customer. Tenure Means the length of the relationship between the business and the customer. Customer churn rate Means how many percent of the customers stops doing business with the company. The customer journey - 7 stages - Suspect - Does the potential customer fit your target market profile? Life time value The present-day value of all the net margins earned from a relationship with a customer, customer segment or cohort. Customer loyalty - two dimensions Behaviour loyalty is measured by reference to customer purchasing behaviour. Loyalty is expressed in continued patronage and buying. Attitude loyalty is measured by reference to components of attitude such as beliefs, feelings and purchasing intention. Those customers who have a stronger preference for, involvement in or commitment to a supplier are the more loyal in attitudinal Customer lifecycle A representation of the stages that customers go through in their relationship with a company, as seen from the companies perspective. 3 stages of the customer lifecycle Customer acquisition Two types of new customers New-to-category customer who have either identified a new need or found a new category of solution for an existing need. A customer can be new-to-category if they begin an activity that requires resources that are new to the business. New-to-company is customers who are new to the company. They are won from competitors. New-to-company customers can be very expensive to acquire, particularly if they are strongly committed to their current supplier. Commitment is reflected in a strong positive attitude to, or high levels of investment in, the current supplier. Strategic switching Occurs when customers shift their allegiance from one supplier to another in pursuit of a better deal. This is a low commitment to the company. For example, banks know that their promotional pricing stimulates hot money Prospecting Is about searching for opportunities that will generate income for your business and add value to your business. You can do this by segmentation or targeting. Advertising The creation and delivery of message to targeted audiences through the purchase of time or space in media owned by others. Key performance indicators How many customers are acquired? The ideal result would be a low-cost programme that generated lots of highly valuable customers. Customer retention The number of customers doing business with a firm at the end of a financial year expressed as percentage of those who were active customers at the beginning of the year. Customer development The process of growing the value of retained customers. Companies generally attempt to cross-sell and up-sell products into the customer base whilst still having regard for the satisfaction of the customer. Different measures for retaining customers Raw customer retention rate is the number of customers doing business with a firm at the end of a trading period expressed as percentage of those who were active customers at the beginning of the period. Sales-adjusted retention rate is the value of sales achieved from the retained customers expressed as a percentage of the sales achieved from all customers who were active at the beginning of the period. Profit-adjusted retention rate is the profit earned from the retained customers expressed as a percentage of the profit earned from all customers who were active at the beginning of the period. Ways to create customer perceived value Loyalty schemes Customer portfolio management (CPM) The collection of mutually exclusive customer groups that comprise a business's entire customer base. In other words, a company's portfolio is made up of customers clustered on the basis of one or more strategically important variables Benefits with CPM Aims to optimize business performance - whether that means sales growth, enhance customer profitability or something else - across the entire customer base. It does this by offering differentiated value proposition to different segments of customers. Basic disciplines for CPM Segmentation, sales forecasting, activity-based costing (ABC), customer lifetime value estimation and data mining. Value proposition A company's promise that customer will experience a specific bundle of benefits from their use or consumption of a company offering. Market segmentation process Identify the business you are in. Sales forecasting Qualitative methods Customer centric view A learning firm that constantly adapts to customer requirements and competitive conditions. Activity based costing Gives the manger of the claims processing department a much clearer idea of what activities create costs. Data mining Can be thought of as the creation of intelligence from large quantities of data. It has particular value when you are trying to find patterns or relationships in large volumes of data. 7 core CPM strategies o Protect the
relationship Customer experienced value When a company create and deliver value to targeted customers at a profit. Value The customer's perception of the balance between benefits received from a product or service and the sacrifices made to experience those benefits. Different sacrifices that the customers make Money TCO Looks not only at the cost of acquiring products, but also the full cost of using and serving the product throughout its life, and ultimately disposing of the products. Is an attempt to come up with meaningful estimates of lifetime costs across all the stages. When are customers experience value? Value-in-experience Special attributes of services - four types Heterogenous - performed by people so cannot be
performed at the same time. How to classify customers o Planned vs. unplanned Different concepts of customer experience o Touch points SFA (sales force automation) The application of computerized technologies to support sales people and sales management in achievement of their work-related objectives. The SFA ecosystem Solution providers Marketing automation The application of computerised technologies to support marketers and marketing management in the achievement of their work-related objectives. You would use marketing automations to run highly targeted campaigns based on complex data mining and predictive analytics. Closed loop marketing (CLM) Ensures that companies learn continuously from their marketing activities, achieving higher levels of marketing effectiveness. Service automation The application of computerised technologies to support service staff and management in the achievement of their work-related objectives.
Customer service The assistance and advice provided by a representative of a company to those who buy or use its products or services. The nordic model of service quality Identifies three components of service quality; technical, functional and reputational. Developing and managing customer-related databases o Define the database function. Customer-related database Databases containing data that are employed for CRM purposes, for and about the customer. Customer-related data Anything pertinent to the development and maintenance of customer relationship. Structured vs. Unstructured Data Structured data is data stored in a fixed and named field in a record or file. Unstructured data do not fit a pre-defined model. It takes form of textual and non-textual files. i.e. Big data. Types of databases hierarchical, network, relational Data building schemes o Competition
entries Data integration Challenge of integrating data from several sources into a coherent single view of customer. It requires the customer's identify to be traceable in all interactions with the firm, and that any anomalies between the records in various database are identified and resolved. Text analytics Extract relevant information from unstructured text files, and transform it into structured information that can then be leveraged in various ways. Big Data 3 V's Volume, Variety, Velocity (hastighet) 3 ways to generate analytical insight Standard reports OECD Principles Purpose specification Safe harbour principles Notice Implementation of CRM o Phase 1 - Develop CRM strategy Kothler's 8 steps to managing change o Create a sense of urgency so that people begin to feel "we must do something". Sets found in the same folder
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Human Resource Management15th EditionJohn David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine 249 solutions Other Quizlet setsRadiology ch 12-33 terms erin_moody85PLUS Psych Final discussion questions11 terms alexis_tabbs10 Neuro Disease Index Exam II109 terms dmaglaris Monopoly - Lecture 146 terms CallumEcon What is the main objective of a customer relationship management program?Customer relationship management (CRM) is a technology for managing all your company's relationships and interactions with customers and potential customers. The goal is simple: Improve business relationships to grow your business.
What is the one focused objective of CRM quizlet?CRM must be focused on relationship development, not just database development. Companies can use different methods and applications to build customer loyalty. Companies can develop campaigns and loyalty programs, they can try to cross-sell, and they can target their communications.
What is one of the three major objectives of customer relationship management?The overall business goals of CRM systems are to help organizations 1) capture new leads and move them through the sales process; 2) support and manage relationships with current customers to maximize their lifetime value to the company; and 3) boost productivity and lower the overall costs of marketing, sales, and ...
What are customer relationship management programs quizlet?Customer Relationship Management: is about building and maintaining profitable long-term customer relationships beyond the one-off buy and sell transaction. acquiring, retaining and partnering with selective customers to create superior value for both the company and the customer.
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What is the main objective of a customer relationship management program quizlet?
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