29 terms

BIS chapter 9

Customer Relationship Management
Involves managing all aspects of a customers relationship with an organization to increase customer loyalty and retention.
Recency: How recently a customer purchased items
Frequency: How frequently a customer purchases items
Monetary Value: How much a customer spends on each purchase
An organization can find its most valuable customers by using
3 Phases in the evolution of CRM
Reporting: identify customers
Analyzing: segment customers into categories
Predicting: predictions regarding customer behavior
Operational CRM
Supports traditional transactional processing for day-to-day front office operations or systems that deal directly with the customers
Analytical CRM
Supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customer.
3 Primary marketing CRM technologies to increase customer satisfaction
List Generator
Campaign management
Cross-sellin and Up-selling
List Generator
Compile customer information from a variety of sources and segment the information for different marketing campaigns.
List generators provide the marketing department with a solid understanding of the type of customer it needs to target for campaigns.
Campaign Management
Guide users through marketing campaigns. These systems can calculate quantifiable results for ROI for each campaign and track the results in order in order to analyze and understand how the company can fine-tune future campaigns.
Selling additional products or services to a customer. Ex. McDonald's offer to add an apple pie to the meal.
Is increasing the value of the sale. Ex. McDonald's offer to super-size a meal
Sales Force Automation
Is a system that automatically tracks all of the steps in the sales process.
3 primary Sales CRM Technologies used to increase customer Satisfaction
Sales Management CRM Systems
Contact management CRM Systems
Opportunity Management CRM systems
Sales Management CRM Systems
Automate each phase of the sales process, helping individual sales representatives coordinate and organize all of their accounts.
Contact Management CRM Systems
Maintains customer contact information and identifies prospective customers for future sales. (makes the customer feel valued since the sales associate knows her name and even remembers details of their las conversation)
Opportunity Management CRM systems
Target sales opportunities by finding new customers or companies for future sales. Can even calculate the probabilities of a sale.
3 primary Customer Service CRM Technologies used to increase customer Satisfaction
Contact center
Web-based self-service
Call scripting
Contact center
Knowledge-management software, which helps call centers put consistent answers at customer-service representative's fingertips, is often long on promise and short on delivery.
Is where customer service representatives answer customer inquiries and respond to problems through a number of different customer touch-points.
Web-based Self-service
Allow customers to use the web to find answers to their questions and solutions to their problems
Call Scripting
Access organizational data-bases that track similar issues or questions and automatically generate the details for the representative who can the relay them to the customer. Helps the representative to answer questions.
Occurs when a website can know enough about a person's likes and dislikes to fashion offers that tare more likely to appeal to that person.
Supply Relationship Management (SRM)
Focuses on keeping suppliers satisfied by evaluating and categorizing suppliers for different projects, which optimizes supplier selection.
The company can determine the best supplier to collaborate with and work on developing strong relationships with that supplier.
Partner Relationship Management (PRM)
Focuses on keeping vendors satisfied by managing alliance partner and reseller relationships that provide customers with the optimal sales channel.
Employee Relationship Management (ERP)
Provides employees with a subset of CRM applications available through a web browser.
Many of the ERP applications assist the employees in dealing with customers by providing detailed information on company products, services, and customer orders.
Business Intelligence
Refers ti applications and technologies that are used to gather, provide access to, and analyze data and information to support decision-making efforts.
Data mining analysis and Business intelligence divided into 3 Categories
3 Latencies that impact the speed of decision making
Data: time to make data ready for analysis and loading the data into the database
Analysis: time from which data are made available to the time when analysis is complete
Decision: time it takes a human to comprehend the analytical result and determine an appropriate action.
Business Benefits of BI
Single point of access to information for all users
It can be used at every step of the value chain
Up-to-the-minute information for everyone
Categories of BI Benefits
Quantifiable Benefits (Time saved, selling information)
Indirectly Quantifiable Benefits (Improved customer service->new business from the same customer)
Unpredictable Benefits (result of discoveries made by creative users)
Intangible Benefits (Improved communication, job satisfaction, improved knowledge sharing)