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