management to show its

gabonesedestructionSoftware and s/w Development

Feb 17, 2014 (3 years and 1 month ago)

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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.

Define


Customer Relationship Management (CRM)

-

Strategies,
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


Customer
-
Centric Strategy



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



Creating a positive consumer experience at the point of sale and
post
-
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.”
http://www.businessdictionary.com/definition/customer
-
centric.html#ixzz20QZoF11e


Define


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)



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

http://www.businessdictionary.com/definition/business
-
process
-
management
-
BPM.html#ixzz20Qc2sYbh



Define the term customer relationship
management (CRM)


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


Helps businesses to understand the respond to
customers’ changing needs


Emphasizes positive meaningful, and long
-
term
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)
Cont.


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

http://www.allbusiness.com/company
-
activities
-
management/operations/11477600
-
1.html#ixzz1c5DbnOf1


Define the term customer relationship
management (CRM)
Cont.


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


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

http://www.allbusiness.com/company
-
activities
-
management/operations/11477600
-
1.html#ixzz1c5DbnOf1


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:


Demographics


Interests


Previous orders


Preferences


Contact information


To increase “touch points”

CRM Goals continued


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


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
after
determining the company’s CRM strategy, objectives, and
program participants

Describe Common CRM Processes


Campaign management (usually conducted by the marketing
dept.)


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
commitment.”

http://en.wikipedia.org/wiki/Customer_experience


Discuss the use of customer information in
CRM


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
Cont.


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
priority


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
processes


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
groups.


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
that:


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
business


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
-
making)


Long
-
term profitability

Performance Indicator: Explain the
role of ethics in CRM

Definitions


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


Agree


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.
http://ezinearticles.com/?Presenting
-
ETHICS
---
Elevating
-
Trust
-
Has
-
Inspired
-
Customer
-
Satisfaction&id=2307463


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
-
to
-
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 @
http://chiefmarketer.com/crm/0106
-
customer
-
loyalty/



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
http://www.ehow.com/info_8384284_ethical
-
issues
-
crm.html



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
rd

parties


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
-
out

http://www.mmmlaw.com/media
-
room/publications/articles/legal
-
and
-
ethical
-
issues
-
in
-
obtaining
-
and
-
sharing
-
information1


FEDERAL TRADE COMMISSION FAIR
INFORMATION PRACTICE (FIP) PRINCIPLES


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,
inexpensive
process.


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.

http://www.prenhall.com/behindthebook/0132304619/pdf/laudon%20MIS10_CH
-
04%20FINAL.pdf


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


Lawsuits


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

Definitions


Client intelligence


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


Cross
-
selling


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


Up
-
selling


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.
http://www.agiledata.org/essays/mappingObjects.html


Definitions continued


Personalization


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)


Segmentation


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


Clustering
-

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


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
customer
-
friendly to capture greater market share,
increase customer loyalty, and attract more customers.


http://www.businessknowhow.com/marketing/crm.htm


Types of CRM tools


CRM Applications




Email focus


Infusionsoft


InTouch CRM


Social and collaborative focus


Batchbook


Kickapps


Rapportive


Gist


Sales focus


Smartsheet Sales Pipeline


SalesForce.com


Sugar CRM

http://smallbiztrends.com/2011/01/9
-
crm
-
apps
-
small
-
business.html


CRM tools continued

Databases

Data Warehouses


Uses


Customer information


Employee information


Create reports on buying
habits and trends


Track sales and create goals
for the sales team

http://www.avidian.com/crm/crm
-
database.aspx



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
continued


Collaborative CRM
-

Collaborative data management
tools make company information available across the
web

http://www.ehow.com/list_6707950_types
-
crm
-
tools.html#ixzz1c5lkeLYd


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:


Cross
-
selling/Up
-
selling opportunities



Customer drift



Sales performance



Customer trends


Types of CRM software approaches
continued


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
updates

http://www.crmscorecard.com/types
-
of
-
crm.htm



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

-

what,
when, where, and how much
a customer bought



Relationship data

-

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

CRM technology

Benefits

Drawbacks


Data consolidation & analysis


allows sales and customer services
professionals comprehensive data


Customer identification & retention


providing personalized sales
offerings


Cross
-
selling opportunities
-

offer
personally tailored product offerings
during the service transaction


Portability
-

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


http://www.ehow.com/list_6529278_crm
-
technology
-
benefits.html







Record loss
-

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


Overhead


costs associated with
running the software application


Training


takes away time from
productivity


Increased vulnerability


if security
is breached


http://www.ehow.com/list_6178037_disadvantages
-
crm
-
systems.html




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
employee


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
customer


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
warehouse


Cleansing



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


Standardizing

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