Ch 12 Customer Relationship Management

Analytical CRM System
CRM system that analyzes customer behavior and perceptions in order to provide actionable business intelligence; back-office support – no customer interaction
Bundling
A form of cross-selling where an enterprise sells a group of products or services together at a lower price than the combined individual price of the products
Campaign management applications
CRM applications that help organizations plan marketing campaigns that send the right messages to the right people through the right channels
Collaborative CRM system
a CRM where communications between the organization and its consumers are integrated across all aspects of marketing, sales and consumer support process
Cross-selling
the practice of marketing additional related products to customers based on a previous purchase
Customer-facing CRM applications
areas where customers directly interact with the organization, including customer service and support, sales force automation, marketing, and campaign management
Customer interaction center (CIC)
A CRM operation where organizational representatives use multiple communication channels to interact with customers in functions such as inbound teleservices and outbound telesales
Customer relationship management (CRM)
a customer-focused and customer-driven organizational strategy that concentrates on satisfying customers by addressing their requirements for products and services, and then by providing high-quality, responsive service
Customer-touching CRM applications (or electronic CRM or e-CRM applications)
applications and technologies with which customers interact and typically help themselves. Includes search & comparison tools, technical & information services, customized products & services, and loyalty programs
Customer touch points
any interactions between a customer and an organization
Front-office processes
Those processes that directly interact with customers including sales, marketing and services
Loyalty programs
programs that offer rewards to customer to influence future behavior
Mobile CRM system
an interactive CRM system where communications related to sales, marketing, and customer service activities are conducted through a mobile medium for the purpose of building and maintaining customer relationships between an organization and its customers
On-demand CRM system
a CRM system that is hosted by an external vendor in the vendor’s data center which spares the organization the costs associated with purchasing the system, maintenance, and employees need to know only how to access and utilize it. Also known as utility computing or soft ware-as-a-service (SaaS).
Open-source CRM system
CRM software whose source code is available to developers and users at no cost
Operational CRM systems
components of CRM that support the front-office business processes that directly interact with customers (i.e. sales, marketing, and service)

two components:
1. Customer-facing applicaiotions
2. Customer-touching applications

Sales force automation
the component of an operational CRM system that automatically record all the aspects in a sales transaction process
Social CRM
The use of social media technology and services to enable organizations to engage their customers in collaborative conversations in order to provide mutually beneficial value in a trusted transparent manner
Upselling
a sales strategy where by he organizational representative will provide to customers the opportunity to purchase higher-value related products or services as opposed to or along with the customers’ initial product or service selection
Data consolidation
the organization’s CRM systems must manage customer data effectively with modern interconnected systems built around a data warehouse to make all customer-related data available to every unit of the business
360° Data View Customer
complete data set on each customer that allows a company can enhance its relationship with its customers and ultimately make more productive and profitable decisions
Contact Management System
tracks all communications between the company and the customer, the purpose of each communication, and any necessary follow-up which eliminates duplicated contacts and redundancy, which in turn reduces the risk of irritating customers.
Sales Lead Tracking System
lists potential customers or customers who have purchased related products; that is, products similar to those that the salesperson is trying to sell to the customer.
Sales Forecasting System
a mathematical technique for estimating future sales.
Product Knowledge System
a comprehensive source of information regarding products and services
Configurator
an online product-building feature that enables customers to model the product to meet their specific needs.
Customer Service and Support
systems that automate service requests, complaints, product returns, and requests for information
Call Center
a centralized office set up to receive and transmit a large volume of requests by telephone
Outbound Telesales
the CIC generates a call list for the sales team, whose members contact sales prospects
Inbound Tele-service
customers communicate directly with the CIC to initiate a sales order, inquire about products and services before placing an order, and obtain information about a transaction they have already made
Information Help Desk
assists customers with their questions concerning products or services, and it also processes customer complaints.
Live Chat: allows customers to connect to a company representative and conduct an instant messaging session enabling the participants to share documents and photos.
Marketing
CRM Marketing applications use data mining to sift through volumes of customer data
Types of customer service & support:
Customer interaction centers
Call centers
Outbound/inbound telesales
Help desk
Online chat – Live and automated
Types of sales force automation
Contact management
Sales lead tracking
Sales forecasting
Product knowledge
Customizers/configurators
Data Mining
develops a purchasing profile or snapshot of a consumer’s buying habits that may lead to additional sales through cross-selling, upselling, and bundling.
On-Premise CRM Systems
systems are purchased from a vendor and then installed them on site.