Management Information Systems Chapter 12 Customer Relationship Management

Customer touch points
Any interaction between a customer and an organization.
low-end CRM systems
—designed for enterprises with many small customers (Amazon)
high-end CRM systems
—for enterprises with a few large customers.(eg Boeing)
Collaborative CRM systems
A CRM system where communications between the organization and its customers are integrated across all aspects of marketing, sales, and customer support processes.
Operational CRM systems
The component of CRM that supports the front-office business processes that directly interact with customers (i.e., sales, marketing, and service).
Front-office processes
Those processes that directly interact with customers; that is, sales, marketing, and service.
Customer interaction centers (CIC)
A CRM operation where organizational representatives use multiple communication channels to interact with customers in functions such as inbound teleservice and outbound telesales.
Sales force automation (SFA)
The component of an operational CRM system that automatically records all the aspects in a sales transaction process.
Upselling
A sales strategy where the organizational representative provides to customers the opportunity to purchase higher-value related products or services in place of, or along with, the consumer’s initial product or service selection.
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.
Customer-touching CRM applications, (also called electronic CRM or e-CRM)
Applications and technologies with which customers interact and typically help themselves.
Analytical CRM systems analyze customer data for a variety of purposes:
– Designing and executing targeted marketing campaigns
– Increasing customer acquisition, cross-selling, and upselling
– Providing input into decisions relating to products and services (e.g., pricing and product development)
– Providing financial forecasting and customer profitability analysis
Open-source CRM systems
CRM software whose source code is available to developers and users.
Customer relationship management (CRM)
is an organizational strategy that is customer focused and customer driven.
Collaborative CRM
is an organizational CRM strategy where data consolidation and the 360° view of the customer enable the organization’s functional areas to readily share information about customers.
Customer-facing CRM applications
include customer service and support, sales force automation, marketing, and campaign management
Customer-touching applications
include search and comparison capabilities, technical and other information and services, customized products and services, personalized Web pages, FAQs, e-mail and automated response, and loyalty programs.