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EP1141: Topic 2 - Customer Relationship Management (CRM)
Terms in this set (12)
Customer Relationship Management (CRM) Software
CRM is a software program that enables a company to manage detailed information about individual customers to carefully managing customer touch points to build customer relationships, maximize customer loyalty and retention, while allowing the company to recognize the need for customer recovery when it arises.
The primary goal of CRM is to integrate and automate sales, marketing and customer support.
How does CRM software bring value to a company?
1) CRM software gathers customer information and documents into a single CRM database so the business users can access it easily and manage it.
2) It allows a business to record potential new leads and contacts, customers, lost customers, potential new customers (prospects), suppliers, partners, and inactive customers.
3) All customer interactions can be tracked by everyone in the company (sales, service, email, marketing, accounting)
4) It reveals possibilities (selling/upselling opportunities), records buying preferences, purchasing history and concerns.
5) The valuable customer data remains when workers leave a company.
6) It provides instant metrics (reports can be produced at any time).
What are the 3 main elements of CRM software?
1) Sales Tracking
2) Marketing Automation
3) Customer Support
Sales Force Automation (SFA)
The component of a CRM system that automatically records all the aspects in a sales transaction process for a company including sales prospecting, contact information, sales quote generation, follow up and closures.
Service Centre Automation
Service Centre Automation (Contact Centre Automation) is designed to reduce certain aspects of a service center agent's job. Such a centre might include pre-recorded audio that helps in customer problem-solving and providing information (example: when calling a HELP line for a bank).
What is Customer Lifecyle?
It is the steps a customer goes through when considering purchasing, using and maintain loyalty to a product (good or service). These steps include:
1) Acquire Customers
2) Enhance their Profitability for the Company
How can CRM Software help a company acquire new customers?
CRM helps a company acquire new customers by recording all ascpects of the company's marketing activities which may include:
1) Email, snail mail
2) Company Website Visitation
3) Online Catalogue Visits and Purchases
4) Website data capture/ analysis
5) Analyze traffic on their Web site through log files, web bugs and cookies to track preferences.
6) Determine areas suitable for innovation through the recommendation of new product ideas and/or product enhancement
How can CRM Software help a company enhance their profitability from a customer?
CRM allows a company to:
1) Better understand what existing customers want
2) Increase up-sell (do you want cheese on that burger?) and cross-sell (do you want fries with that?) opportunities
3) Understand non-profitable customers
4) Reduce returns and service requirements
5) Sales Force Automation (on-line ordering, laptops, mobiles, etc. for sales staff)
How can CRM Software help a company retain profitable customers for life?
CRM helps companies retaining profitable customers for life by:
1) Increasing customer satisfaction
2) Creating customer loyalty
3) Improving service to existing customers
4) Providing more self-service opportunities
5) Building Intelligent agents, chat, email, helpdesk, FAQ that are relevant to the customer
6) Giving access to an online knowledge base
7) Ensuring priority attention for profitable customers
What are the challenges for CRM Software developers?
1. Be clear on objectives - (all departments and end-users) must be involved and in agreement as to the company's objectives.
2. The total cost of ownership (hardware, software, engineering & operations) or licensing fee - what is the total cost?
3. Achieving user adoption - This is the key to success for any CRM. Plan for training programs for the end-users and keep the system simple. A complex system discourages usage.
4. Managing the Application - The CRM system must be managed to so that all workers are consistently using the system.
5. Processes - All processes must be clearly defined and should be kept in a central depository (location).
6. Finding the right partner - Success of the CRM is dependant on finding the right solutions partner that will help with strategy and implementation. Work with a partner who understands local work cultures, technology limitations and cultural sensitivities.
7. Managing customer interactions - consideration must be given to languages, time zones, currencies.
What are the core competencies of CRM Software?
2) Direct marketing
3) Customer service & support
4) Customer billing
5) Retention management
What are some good strategies to follow when building CRM Software for client companies?
1) Understand the customer
2) Understand the issues and challenges
3) Provide education and training to workers
4) Be aware of cultural readiness (work environment)
6) Consider all the processes of the CRM strategy
7) Identify how success will be measured
8)Always re-visit the strategy
THIS SET IS OFTEN IN FOLDERS WITH...
EP1141 Topic 1: E-Business Architecture
EP1141: Topic 3 - Selling Chain Management Systems
EP1141 Topic 4: Enterprise Resource Management
EP1141 - Final Exam Study Set
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