Why is it necessary for an organization to have a good customer relationship management (CRM) system?
CRM systems are necessary to efficiently and effectively support/maintain one-on-one relationships with customers to improve their experience and compete in the global market. By successfully implementing a CRM system, a company can reduce costs and improve customer satisfaction. Focusing on customer’s requirements helps with the building of brand loyalty and market growth.
Define the role of CRM in your own words.
CRM captures, stores and analyzes customer data in real-time so the organization can improve processes that directly impact customer satisfaction and support them. CRM helps efficiently and effectively carry out its business strategy.
What are the key differences between today’s CRM and the early generation of CRMs?
Early CRMs focused primarily on sales management but as technology has evolved, CRM has developed analytical processes that assess each customer interaction with the company. Today, CRM is integrated into ERP, which allows for sophisticated data mining that assists with understanding and predicting customer behaviors and needs.
How does CRM impact the company’s bottom line or performance?
CRM can help improve the bottom line if carefully planned and monitored throughout. CRM should help implement companywide business strategy that will reduce costs and enhance service by increasing customer loyalty and making quick yet informed decisions in real-time.
What are the major types of CRM?
At the highest level, CRM systems can be categorized by functionality (which includes customer service and sales force automation), by business strategy (which includes business, technology and customer as shown in Table 12-1 of book), and by the implementation perspective (which includes operational, analytical, and collaborative CRM implementation processes).
Briefly describe the customer relationship processes.
CRM delivery focuses on direct interaction with the customer to support activities to solve a specific customer process. CRM support focuses on assisting customer contact processes rather than facilitating them. CRM analysis are back-end systems that collect, consolidate and analyze customer knowledge improving support for customer contact processes like campaign and loyalty management.
What are the major components of CRM?
Market research tools provide sophisticated segmenting and targeting of customer data in real-time. Sales force automation provides sales data(forecasting/reporting) that allows reps to focus more on selling rather than administration.
Customer service and support consolidates services into help desk support centers that can be accessed by trained help desk ticket runners or by customers via the Internet.
Data mining and analytics include OLAP and other software that look for trends, demographics and other sales patterns.
What is hosted CRM?
A hosted CRM is a type of architecture where the CRM vendor hosts the web site and data. Scalability and performance are better in hosted models than in-house. The main concern with hosted CRM is that the vendor might run into down time. An application service provider like Salesforce.com can offer a hosted CRM for quick implementation for basic functions.
How should organizations design CRM systems?
Design should be a strategic business solution rather than a technical one. Up-front planning with top management and constant monitoring should be a key focus. A step-by-step implementation starting with the most critical functions is important. Security and privacy issues should also be evaluated when collecting customer data to avoid any unethical issues.
List the major CRM vendors by their target market.
Large Enterprise—Siebel, Vantive, Clarify, and Oracle
Midsize Firms—Servicesoft, Onyx, Pivotal, Remedy, and Applix
Small Companies—Goldmine, Multiactive, and SalesLogix
Customer Relationship Management (CRM)
integrates corporate strategy, business methods, and technology to accomplish company goals in a customer-centric environment. Goals include maximizing profitability, revenue and customer satisfaction.
provides the capture, storage and analysis of customer, vendor, partner and internal information in real-time. CRM should always focus on the customer experience.
focus on the needs and requirements of the customers and clients.
provides front- and back-end support for sales, marketing, administrative, and customer-service processes. It improves the efficiency of delivery and support.
provides collection and analysis of data gathered during operations to help create better relationships/experience with clients. It stores and value-adds customer knowledge for increased understanding of behaviors and needs.
are the systems that deal with interaction between customer and company. Using channels like e-mail, telephone, Internet and fax the customer can interact electronically with the company.
Market research, Sales Force Automation, Customer Service Support and Data Mining
all increase the effectiveness of CRM.
CRM is a________ business solution