MSIS Chapter 8.2

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
Benefits of CRM
organizations can find their most valuable customers using RFM-recency, frequency and monetary value
Sales Metrics
# of prospective customers, new customers, retained customers, open leads, sales calls, sales calls per lead, and proposals given; amount of new revenue and recurring revenue
Customer Service Metrics
cases closed same day, # of cases handled by agent, # of service calls, avg # of services requests by type, avg time to resolution, avg # of service calls per day, % compliance with service-level agreement, % of service renewals, and customer satisfaction level
Marketing Metrics
# of marketing campaigns, new customer retention rates, # of responses by marketing campaign, # of purchases by marketing campaign, revenue generated by marketing campaign, cost per interaction by marketing campaign, # of new customers acquired by marketing campaign, customer retention rate, # of new leads by product
CRM Communication Channels
test, IM, voice mall, phone call, email, web order, phone order, meeting, customer service call, twitter, Facebook
CRM Reporting Technologies
help organizations identify their customers across other applications
CRM Analysis Technologies
help organizations segment their customers into categories such as best and worst customers
CRM Predicting Technologies
help organizations predict customer behavior, such as which customers are at risk of leaving
Operational CRM
supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers; sales systems, marketing systems and customer service systems
Analytical CRM
supports back-office operations and strategic analysis and includes all systems that do no deal directly with the customers; data warehouse and data mining
Marketing and Operational CRM
list generator, campaign management, cross-selling and up-selling
List Generator
compiles customer info from a variety of sources and segment it for different marketing campaigns
Campaign Management
guides users through marketing campaigns by performing such tasks as campaign definition, planning, scheduling, segmentation and success analysis
selling additional products or services to and existing customer
increasing the value of the sale
Sales and Operational CRM
sales management, contact management, and opportunity management; sales force automation
Customer Service and Support
a part of operational CRM that automates service requests, complaints, product returns and info requests
Sales Force Automation
automatically tracks all the steps in the sales process
Sales Management
automate each phase of the sales process, helping individual sales representatives coordinate and organize all their accounts; calendars, reminders, document generation, etc
Contact Management
maintains customer contact info and identifies prospective customers for future sales, using tools such as organizational charts, detailed customer notes, and supplemental sales info
Opportunity Management
target sales opportunities by finding new customers or companies for future sales; determine potential customers and competitors and define selling efforts including budgets and schedules
Customer Service and Operational CRM
contact center, web-based self-service and call scripting
Contact/Call Center
customer service representatives answer customer inquiries and solve problems, usually by email, chat or phone; automatic call distribution, interactive voice response, predictive dialing
Automatic Call Distribution
routes inbound calls to available agents
Interactive Voice Response
directs customers to use touch-tone phones or keywords to navigate or provide info
Predictive Dialing
automatically dials outbound calls and forwards answered calls to an available agent
Web-Based Self-Service
allows customers to use the web to find answers to their questions or solutions to their problems; click-to-talk
allows customers to click a button and talk with a representative via the Internet
Call Scripting
gathers product details and issue resolution info that can be automatically generated into a script for the representative to read to the customer
Uplift Modeling
a form of predictive analytics for marketing campaigns that attempts to identify target markets or people who could be convinced to buy products
Customer Segmentation
divides a market into categories that share similar attributes such as age, location, gender, habits, and so on
Website Personalization
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
Supplier Relationship Management
focuses on keeping suppliers satisfied by evaluating and categorizing suppliers for different projects
Partner Relationship Management
discovers optimal sales channels by selecting the right partners and identifying mutual customers
Employee Relationship Management
provides web-based self-service tools that streamline and automate the human resource department
Enterprise Resource Planning
integrates all departments and functions throughout an organization into a single IT system so employees can make decisions by viewing enterprise wide info about all business operations
Reasons ERP is Powerful
logical solution to incompatible applications, addresses global info sharing and reporting, avoids the pain and expense of fixing legacy systems
Core ERP Components
the traditional components included in most ERP systems and primarily focus on internal operations; accounting and finance, production and materials, human resource
Extended ERP Components
the extra components that meet organizational needs not covered by the core components and primarily focus on the external operations; business intelligence, customer relationship management, supply chain management, Ebussiness
Accounting and Finance ERP Components
manage accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting and asset management
Production and Materials ERP Components
handle production planning and execution tasks such as demand forecasting, production scheduling, job cost accounting, and quality control
Human Resource ERP Components
track employee info, including payroll, benefits, compensation, and performance assessment and ensure compliance with all laws
manages the transportation and storage of goods
the business-to-business online purchase and sale od supplies and services
Software Customization
modifies existing software according to the business’s or user’s requirements
Balanced Scorecard
a management system, as well as a measurement systems, that a firm uses to translate business strategies into executable tasks
Perspectives of Balanced Scorecard
learning and growth, internal business process, customer and financial
ERP Costs
software, consulting fees, process rework, customization, integration, testing, training, data warehouse integration and data conversions
Two-tier ERP Architecture
allows an organization to have an on-premises ERP system along with cloud ERP applications

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