ISM: 8.2 – Flashcards
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CRM
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Customer Relationship Management- A means of managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and an organization's profitability.
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Harley-Davidson asks the dealers to agree to a number of standards including:
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- Checking online orders twice daily - Shipping online orders within 24 hours - Responding to customer inquiries within 24 hours
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An organization must track:
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- How recently customers purchased items - How frequently a customer purchases items - The monetary value of each customer purchase
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Name the 3 phases in the evolution of CRM:
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1. Reporting 2. Analyzing 3. Predicting
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CRM reporting technologies
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Help organizations identify their customers across other applications.
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CRM analysis technologies
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Help organizations segment their customers into categories such as best and worst customers.
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CRM predicting technologies
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Help organizations predict customer behavior, such as which customers are at risk of leaving.
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Operationl CRM
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Supports traditional transactional processing for day-to-day front office operations or systems that deal directly with the customers.
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Analytical CRM
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Supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers.
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The 3 primary operational CRM technologies a marketing department can implement to iincrease customer satisfaction are:
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1. List Generator 2. Campaign management 3. Cross-selling and up-selling
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List generators
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Compile customer information from a variety of sources and segment it for different marketing campaigns.
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List Generator sources include:
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-Web visits -Questionnaires - Surveys - Marketing Mailers -and so on
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Campaign management systems
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Guide users through marketing campaigns by performing such tasks as campaign definition, planning, scheduling, segmentation, and success analysis.
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Cross-selling
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Selling additional products or services to an existing customer.
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Up-selling
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Increasing the value of the sale. Ex: Supersizing a meal.
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Who were the first to begin developing CRM systems?
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Sales Departments
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SFA
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Sales force automation- Automatically tracks all the steps in the sales process.
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What do SFA products focus on?
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- increasing customer satisfaction - building customer relationships - improving product sales
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The three primary operational CRM technologies a sales department can adopt are:
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1. Sales management CRM systems 2. Contact management CRM systems 3. Opportunity management CRM systems
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Sales management CRM systems
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Automate each phase of the sales process, helping individual sale representatives coordinate and organize all their accounts. Features include: Calendars, reminders, multimedia presentations, and document generation.
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Contact management CRM system
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Maintains customer contact information and identifies prospective customers for future sales, using tools such as organizational charts, detailed customer notes, and supplemental sales information.
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Opportunity management CRM systems
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Target sales opportunities by finding new customers or companies for future sales.
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What is the primary difference between contact management and opportunity management?
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Contact management deals with existing customers and opportunity management with new or potential customers.
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What is a primary reason firms lose customers?
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Negative customer service experience
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contact center/call center
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Where customer service representatives answer customer inquiries and solve problems, usually by e-mail, chat, or phone.
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Web-based self-service systems
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Allow customers to use the web to find answers to their questions or solutions to their problems.
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click-to-talk
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Functions, which allow customers to click on a button and talk with a representative via the Interent.
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Call scripting systems
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Gather product details and issue resolution information that can be automatically generated into a script for the representative to read to the customer.
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Website personalization
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Occurs when a website has stored enough data about a person's likes and dislikes to fashion offers more likely to appeal to that person.
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Examples of the information insights analytical CRM can help an organization gain:
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- Find new profitable customers - Exceed customer expectations - Discover the activities the firm performs the best - Eliminate competition - Care about customers
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SRM
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Supplier relationship management- Focuses on keeping suppliers satisfied by evaluating and categorizing suppliers for different projects
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PRM
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Partner relationship management- Discovers optimal sales channels by seleting the right partners and identifying mutual customers.
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ERM
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Employee relationship management- provides web-based self-service tools that streamline and automate the human resourse department.
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ERP
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Enterprise resource planning- Integrates all departments and functions throughout an organization into a single IT system so employees can make decisions by viewing enterprisewide information about all business operations.
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Core ERP components
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The traditional components included in most ERP systems and primarily focus on internal operations.
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Extended ERP components
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The extra components that meet organizational needs not covered by the core components and primarily focus on external operations.
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The three most common core ERP components focusing on internal operations are:
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1. Accounting and finance 2. Production and materials management 3. Human resources
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Accounting and fincance ERP components
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Manage accounting and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management.
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Production and materials management ERP components
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Handle production planning and execution tasks such as demand forecasting, production scheduling, job cost accounting, and quality control.
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Human resources ERP components
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Track employee information including payroll, benefits, compensation, and performance assessment and ensure compliance with all laws.
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The 4 most common extended ERP components are:
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1. Business intelligence 2. Customer relationship management 3. Supply chain management 4. Ebusiness
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Elogistics
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Manages the transportation and storage of goods
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Eprocurement
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The business-to-business (B2B) online purchase and sale of supplies and services.
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Balanced scorecard
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A management system, as well as a measurement system, that a firm uses to translate business strategies into executable tasks.
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The blananced score-card uses 4 perspectives to monitor an organization:
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1. The learning and growth perspective 2. The internal business process perspective 3. The customer perspective 4. The financial perspective
