management to show its

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17 Φεβ 2014 (πριν από 4 χρόνια και 1 μήνα)

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3.09 Understand the nature of
customer relationship
management to show its
contributions to a company

3.00 Understand product/service management, emotional
intelligence, financial analysis, selling and customer relations.


Customer Relationship Management (CRM)


processes, and policies used by businesses to build, maintain, and
maximize the long
term value of customer relationships

Customer Experience Management (CEM)

Managing the
customer's experience with a supplier of goods or services, over the
duration of their relationship with that supplier

Centric Strategy

Focusing on the customer’s needs
and wants (think marketing concept).

Creating a positive consumer experience at the point of sale and
sale. A customer
centric approach can add value to a company
by enabling it to differentiate itself from competitors who do not
offer the same experience.”


Touch Points

is the interface with customers, non
customers, employees and others

before, during and
after a transaction. Seeing or hearing an ad, walking by the
product on a shelf, hearing someone talk about it, etc.

Continuous Improvement

Focus on improving the
production, sales or other process of a business with the
aim to better satisfy customers

Business Process Management (BPM)

undertaken by businesses to identify, evaluate, and
improve business processes.

Define the term customer relationship
management (CRM)

Strategies, processes, and policies used by
businesses to build, maintain, and maximize the
term value of customer relationships

Helps businesses to understand the respond to
customers’ changing needs

Emphasizes positive meaningful, and long
communication and interaction with customers.

Involves the collection of customer information to
draw conclusions about the customer’s needs and
wants as well as predict the customer’s loyalty and
value in the future

Define the term customer relationship
management (CRM)

CRM is a strategic tool firms can use to leverage
proprietary information to identify cross
opportunities, new prospects, and potential conflicts
of interest or independence issues. By developing a
deeper understanding of your clients
industries, markets and relationships
through CRM,
your firm can gain a sustainable competitive
advantage in challenging times

Define the term customer relationship
management (CRM)

CRM is a strategic tool firms can use to leverage
proprietary information to identify cross
opportunities, new prospects, and potential conflicts
of interest or independence issues.

By developing a deeper understanding of your
their industries, markets and relationships
through CRM, your firm can gain a sustainable
competitive advantage in challenging times

Describe the nature of customer
relationships in today’s society

Because customers now have so many different choices in
the marketplace, they have become more selective about
whom they do business with.

When given the choice to do business with one of two
businesses that sell nearly identical products at similar
prices, customers often choose to purchase from the
business that offers better customer service.

As a result, customers’ expectations for customer service
are higher.

Explain goals of CRM

To build better relationships with existing customers

To build customer loyalty

To attract new customers

CRM tracks important information about the customer:



Previous orders


Contact information

To increase “touch points”

CRM Goals continued

To gather and track information about customer for use
in business decision

To understand customers and their needs so that these
needs can be fulfilled in a manner satisfactory to
customers and businesses

To develop products that meet or exceed customer
expectations (PSM)

To increase business profit

To develop a competitive advantage

The importance of formulating a CRM strategy
prior to implementing CRM processes and tools

Each company should design a unique CRM strategy that
directly addresses its needs, its organization, and its customers

An important step in developing a CRM strategy is identifying
the objectives/goals of the CRM program (e.g., to increase
customer retention, to improve product offerings, etc.)

Before implementing CRM processes and tools, each company
must determine which members of its organization will be
involved in CRM so that these individuals can be trained

CRM technology and tools should be selected
determining the company’s CRM strategy, objectives, and
program participants

Describe Common CRM Processes

Campaign management (usually conducted by the marketing

Targeting prospective customers

Distributing promotional materials to targeted prospects

Tracking response to promotional materials

Generating leads for sales

Sales management (sometimes divided into lead management,
offer management, and contract management)

Recording lead information

Qualifying leads

Prioritizing leads

Contacting leads

Making sales

Common CRM Processes cont.

Service management

Providing after
sales services, such as:

Maintenance and repair services

Warranties and guarantees

Retaining customers

Complaint management

Receiving customer complaints

Resolving customer problems

Communicating customer complaints to the organization

Retaining customers

Describe the role of Customer Experience
Management (CEM) in CRM

The goal of customer experience management (CEM) is to move
customers from satisfied to loyal and then from loyal to advocate.
Traditionally, managing the customer relationship has been the
domain of Customer Relationship Management (CRM). However,
CRM strategies and solutions are designed to focus on product,
price and enterprise process, with minimal or no focus on customer
need and desire.

Where CRM is enterprise
focused and designed to manage
customers for maximum efficiency, CEM is a strategy that focuses
the operations and processes of a business around the needs of the
individual customer.

Jeananne Rae notes, “building great consumer experiences is a
complex enterprise, involving strategy, integration of technology,
orchestrating business models, brand management and CEO

Discuss the use of customer information in

By gathering and organizing customer information, a
business can better determine and fulfill its customers’
needs and wants

Customer information is also used to identify the most
profitable, loyal customers. After identifying these
customers, the business may provide higher, better
service to these customers to maintain their loyalty and
increase their profitability

Role of Corporate culture in CRM

Corporate culture is what makes one business in an
industry different from another in the same industry

How has the company decided to approach its customers?

What kinds of people does it hire?

What are the priorities of that company?

CRM helps the company build strong relationships aimed
at making the customer happy

For CRM be effective, the culture of the company must place
customer satisfaction as its top priority

Role of corporate culture in CRM

For CRM to be successful, it must be supported by the
corporate culture (i.e., the values, beliefs, and encouraged
behaviors in an organization)

Sr. Executives must believe and demonstrate that building
and maintaining customer relationships is a corporate

Corporate values must be understood and embraced by
all employees

Employee incentives, such as prizes and bonuses, can help
ensure that employees embrace CRM strategies and

Also, employees must be given leeway (authority) to do
what is necessary to satisfy customers

Explain the impact of organizational
structure on CRM

The organization should be structured so that customers
have “seamless,” easy interactions with the company.

To ensure that customer have “seamless” interactions
with the company all customer information must be easily
available to all employees who require it (usually using
CRM technology)

Companies with superior CRM processes are much more
likely to be organized according to customer segments or

Employees are assigned into teams to support specific types of
customers (B2B, retail, online, etc).

Describe the relationship of CRM and
continuous improvement

Continuous improvement: The activity of regularly
updating one’s processes for better efficiency and service

After developing a CRM strategy and implementing CRM
processes, continuous improvement must occur to ensure

Company values remain in line with the CRM strategy

CRM processes remain effective

The relationship of CRM and business
process management

CRM and business process management (BPM) work
together to satisfy customers

BPM: A type of management that focuses on the design
and improvement of business processes to make them as
efficient and effective as possible; strives to align business
processes with customers’ needs and wants

BPM ensures that CRM processes meet the needs, wants,
and expectations of customers, while CRM processes can
gather customer information that can be used to ensure
that business processes are designed with the end user

the customer
in mind

Explain ways in which CRM can benefit a

Increased customer satisfaction and loyalty

More customers and customer referrals

Reduced costs

Fewer complaints

Lower employee stress levels

Increased access to customer information (for use in
business decision

term profitability

Performance Indicator: Explain the
role of ethics in CRM


Consent: (v) to be of the same mind or opinion (n)
acceptance or approval of what is planned or done by
another; acquiescence


Integrity: the quality of following rules, even if no one is
around to enforce them. Integrity includes treating
people fairly, applying rules consistently, and being
unbiased and unprejudiced.

Can be counted on to do the right thing

Describe the importance of trust in
customer/business relationships

Building Trust is the Key to Avoiding Ethical Dilemmas

Adapted Aesop’s Fable: two buddies (insurance salesperson
and client) are traveling together in the woods, when a bear
rushes out in front of them. On instinct, the salesperson grabs
a tree branch and climbs a tree, stranding the client. Ever
resourceful, the client feigns death, knowing the bear won’t eat
dead meat. (NOT true.)

After the bear sniffs close to the clients ear, it eventually leaves
the area. As the sales person climbs down the tree, he
laughingly asks the client: What did that big bad bear whisper?
The client glares, then offers: He said, never trust a friend who
deserts you in a pinch.

Describe the importance of trust in
customer/business relationships

Customers won’t (or won’t continue to) buy from
someone they don’t trust

Employees will leave a company where management can’t
be trusted

Trust is the currency of adult interactions

Lack of trust leads to wasted time and decreased sales

Trust is needed for businesses to work together

Discuss loyalty issues in
customer/business relationships

Developing and nurturing loyalty should be the marketer's
primary, day
day concern. Doing so increases the likelihood
their brand can withstand economic turmoil, competitive
threats, and reasonable price increases.

Through in
store temporary price reductions or couponing,
consumers are told "we'll reduce your risk if you give us a
try." The problem is that, just like the price relief itself, the
consumers' commitment to the brand is temporary.

Another popular strategy among marketers with significant
budgets is the development of catchy marketing phrases like
"Just Do It" or "Oops, I could have had a V8". This approach
can be effective, until budgets are cut because another brand
in the division is underperforming.

See the rest of the article @

Describe ethical issues related to the
collection of customer information

Customer information is personal information and must
be protected

The company has a moral obligation to safeguard
personal information collected from the customer

The company often is legally culpable if information is
mishandled or not properly protected

Some customer information could be used to steal from
the customer or impersonate him/her

Children’s information often has legal restrictions concerning
what can be collected and stored

Describe ethical issues related to the
collection of customer information

Security measures when handling credit card payments
and information

Customer data is stored in a secured manner that
monitors when and who accesses the information

There are secure levels of access so those that should
not be able to see certain information can’t

Data is properly deleted when a customer leaves the
CRM program

Read about ethics in CRM at

Situations in which employees/departments involved in
CRM may be reluctant to share customer information

Information was expensive to collect

Customers are sensitive to being contacted

Data won’t be properly controlled

Person requesting the information has not
been vetted and is not confirmed as being
allowed access

Ethical issues related to the sale of
customer information to 3


Data that can be purchased or rented from third party
vendors may include names, addresses, telephone
numbers, mailing addresses, social security numbers, age
information, health and medical data, and other personal
or proprietary information

information obtained for one purpose may be lawful, but if
utilized for another purpose, may be illegal.

Consumer advocates want to give consumers the option to
have to affirmatively "opt
in", i.e., sign a consent form, to permit
information to be conveyed to a third party

Considered automatically to have opted


1. Notice/awareness (core principle).Web sites must disclose their information
practices before collecting data. Includes identification of collector;

uses of data; other recipients of data; nature of collection (active/inactive); voluntary or
required status; consequences of refusal; and steps taken to protect confidentiality,
integrity, and quality of the data.

2. Choice/consent (core principle). There must be a choice regime in place
allowing consumers to choose how their information will be used for

secondary purposes other than supporting the transaction, including internal use and
transfer to third parties.

3. Access/participation. Consumers should be able to review and contest the
accuracy and completeness of data collected about them in a timely,

4. Security. Data collectors must take responsible steps to assure that consumer
information is accurate and secure from unauthorized use.

5. Enforcement. There must be in place a mechanism to enforce FIP principles. This can
involve self
regulation, legislation giving consumers legal
remedies for violations, or
federal statutes and regulations.

The impact of poor/unethical privacy
practices on customer relationships

Company reputation is ruined

Customers get angry and won’t do business anymore

Customers will call and complain about the poor control
of their information


Regulators may intervene

Have the database destroyed

Levy fines

Other businesses will no longer share data

Performance Indicator: Describe
the use of technology in CRM


Client intelligence

Research done during the Pre
approach phase of selling or while working with the


encouraging a customer who buys one
product to buy a related or complementary product (i.e.
tie, shirt, shoes with a suit)


the seller will provide opportunities for the
customer to buy more products or services, often at a
reduced price. BOGO

Relationship mapping

A methodology that describes a
relationship between two or more objects.

Definitions continued


Creation of custom tailored
services(such as news pages on the web or specialized
newsletters) that meet the individual customer’s
particular needs or preferences (RSS feeds)


Subdivision of a population into segments
with similar characteristics, such as age, education, income
(Market segmentation)


A group of the same or similar elements
gathered or occurring closely together, helpful indata
collection and in selling

Difference between CRM technology and

CRM is a strategy (no, not software) to transform your
business to be customer, not product, focused. The CRM
software is just a tool that helps the company carry out
this strategy. Depending on its implementation, it can help
your business identify who your customers are, what they
need and anticipate what could want. It allows businesses
to tailor offers to their current customers, building closer
relationships that make them feel valuable.

Overall, CRM can make your company more efficient and
friendly to capture greater market share,
increase customer loyalty, and attract more customers.

Types of CRM tools

CRM Applications

Email focus


InTouch CRM

Social and collaborative focus





Sales focus

Smartsheet Sales Pipeline

Sugar CRM

CRM tools continued


Data Warehouses


Customer information

Employee information

Create reports on buying
habits and trends

Track sales and create goals
for the sales team

Data warehouse serves as the
repository to collect and
integrate the breadth of
customer information found in
operation systems as well as in
external ones.

The data warehouse supports a
complete view of the
customers, including customer
data from typical sources such
as: transactional data,
interaction data (solicitations,
call centers), demographic and
behavioral data and self
provided profile data

Types of CRM software approaches

Remember when we discussed thinking about your CRM program
before buying your software?

Operational CRM

provide support to front office business
processes such as sales personnel, marketing and service staff

Analytical CRM

Basically it evaluates the necessary customer
data for a wide variety of reasons and purposes like:

Designing and accomplishing target marketing campaigns.

Designing and accomplish various campaigns i.e. cross selling, up selling and
customer acquisition.

Identifying customer behaviors regarding products and services i.e. product
development and pricing.

Management information system, i.e. financial forecasting

Types of CRM software approaches

Collaborative CRM

Collaborative data management
tools make company information available across the

Sales Intelligence CRM

It is known as a direct sales
tool, which is similar to Analytical CRM. Usually it has
a variety of features like:

selling opportunities

Customer drift

Sales performance

Customer trends

Types of CRM software approaches

Campaign Management

contains features of both
Operational and Analytical, includes tracking, storing and
analyzing campaign statistics

Other tools include

Customer Relationship CRM

identify the best
current customers and segments

Simple CRM

Social CRM

can create online ads and Twitter

Data commonly stored in a CRM system

Contact data

ability to
build stronger, longer lasting
relationships with
customers. Know what they
“Like” on Facebook and
who/what they’re following
on Twitter in addition to
their personal data

Demographic data

income, zip code, etc.

Transactional data


when, where, and how much
a customer bought

Relationship data


customer facing employees
in such areas as sales,
customer support, and
marketing to make quick yet
informed decisions on
everything from cross
and upselling opportunities
to target marketing
strategies to competitive
positioning tactics.

CRM technology



Data consolidation & analysis

allows sales and customer services
professionals comprehensive data

Customer identification & retention

providing personalized sales

selling opportunities

personally tailored product offerings
during the service transaction


resolve customer issues
on site while using the information
provided by CRM technology

Improved Forecasting

can identify
both short

and long
term trends in
customer activity

Record loss

company does not
have control of the data. If there
is an outage, information will be


costs associated with
running the software application


takes away time from

Increased vulnerability

if security
is breached

How CRM technology can be used to create
a “single view” of the customer

Software can be programmed to collect and display
customer information in a way the works best for the

A “dashboard” summarizes information so that a manager or
employee can get pertinent information at a glance

Employees can be taught to read standardized summary pages
that give them the information needed to best approach the

CRM technology can present only the critical information
for the particular customer and can be used to compare
customers using like information

Importance of upkeep in the CRM data


removing discrepancies and inconsistencies
in client/customer data. Helps to improve efficiency and
accuracy of CRM data

Also properly removing customer information for those
customers that no longer participate


information about the customer by
recognizing, comparing, matching, and reconciling
customer data across disparate systems according to
predefined rules

Updating data

to view customer in “real
time” and
ensure correct information is stored and being used