3.09 PPT Relationship Management

parakeetconspiracyManagement

Nov 20, 2013 (3 years and 11 months ago)

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Indicator 3.09

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

Vocabulary


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 and 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

Explain goals of customer relationship
management (CRM)


To maximize the value and effectiveness of all customer touch points


Touch points: All the opportunities that businesses have to connect with
customers and reinforce their brand value


To provide outstanding service to customers


To maximize customer satisfaction


To attract and retain loyal customers


To cultivate and maintain positive, profitable relationships with customers


To develop individualized relationships with customers


To gather and track information about customers 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


To increase business profit


To develop a competitive advantage

Describe common CRM processes



Campaign management (usually conducted by the marketing
department)



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

Describe common CRM processes


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

Discuss the use of customer
information in customer relationship

management


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.

Discuss 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.

Describe the role of customer experience
management (CEM) in customer
relationship management (CRM).


The business world has become increasingly focused on the
customer versus the product.



Many businesses have adopted customer
-
centric attitudes
and strategies.


Customer
-
centric strategy: A plan of action used by businesses
that shifts the focus from businesses and their products to
customers and their needs


An important component of CRM is customer experience
management (CEM).


Customer experience management (CEM): Strategies,
processes, and policies used by businesses to meet or exceed
customer expectations for service and to provide customers
with outstanding experiences/interactions at every touch point
throughout their business transactions

Explain the impact of organizational
structure on customer relationship

management


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


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


Companies with superior customer relationship
management processes are much more likely to be
organized according to customer segment or group.

Discuss the role of corporate culture in
customer relationship management


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


Senior executives must believe and
demonstrate that building and maintaining
customer relationships is a corporate priority.

Discuss the role of corporate culture in
customer relationship management


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 to do
what is necessary to satisfy customers.

Discuss 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, organization, and 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.

Discuss the relationship of customer
relationship management and

business process management
.


Customer relationship management and business process
management work together to satisfy customers.


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


Business process management 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.

Describe the relationship of customer
relationship management and

continuous improvement
.


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


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

Explain ways in which customer
relationship management 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
decisionmaking
)


Long
-
term profitability

Vocabulary


Informed consent


Integrity

Describe the importance of trust in
customer/business relationships


Discuss loyalty issues in
customer/business relationships


Describe ethical issues related to the
collection of customer information


Explain situations in which
employees/departments involved in customer
relationship management may be reluctant to
share customer information with each other


Discuss ethical issues related to the sale of
customer information to third parties


Discuss the impact of poor/unethical
privacy practices on customer relationships


Vocabulary


Client intelligence


Cross
-
selling


Up
-
selling


Relationship mapping


Personalization


Segmentation


Clustering

Explain the difference between customer
relationship management technology and
customer relationship management


Describe types of customer
relationship management tools


CRM Applications


Databases


Data warehouses

Discuss customer relationship
management software approaches


Operational


Analytical


Collaborative


Sales force automation

Explain types of data

commonly stored in a CRM system


Contact data


Demographic data


Transactional data


Relationship data

Discuss the benefits and drawbacks
associated with CRM technology


Explain how CRM technology can be used
to create a “single view” of a customer


Explain the importance of cleansing,
standardizing, and updating data in a CRM
data warehouse