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| Question | Answer |
| What is CRM | How companies interact with customers and manage relationships with them |
| Difficulties in CRM | Large companies have many customers and there are many communication channels: E-mail, Telephone, Website, Post, etc |
| What are CRM systems (2) | CRM systems are enterprise systems that focus on functions that support CRM. It gathers customer data that companies can then use to interact better |
| What functions CRM (4) | Sales Marketing Customer Service Technical Support |
| CRM Capabilities (4) | Any employee can answer customer queries-information is there Find most loyal and profitable customers What customers are buying DIstribute information to touch points Single enterprise view |
| What are touch points | Contact points the company has with clients: in-store, telephone, website etc |
| CRM Software | Can be used for niche tools or functions for a large enterprise |
| ERM | ERM: Help employee provide better customer service with tools for employee performance management, setting objectives, performance-based compensation, employee training |
| PRM | Mostly used by companies that operate through selling partners, it improves collaboation: Lead generation pricing, promotions availability, assess partner's performance |
| Operational CRM | Deals with customer-facing activities and enhances business processes used in these activities. It also adds each interaction to a customer history in database |
| Operational CRM uses tools for | Sales force automation Customer service Marketing |
| Sales force automation (10) | Generates leads and qualifies those leads as prospects Focus sales on most profitable customers Provides sales prospect and contact information, product information, product configuration capabilities, Reducing costs of aquiring/retaining customers and cost per sale Has capabilities for sales forecasting, territory management and team selling |
| Customer Service (9) | Increase efficiency of customer support staff Interactions with customers are added to that customer history in database Any member of support staff can access that information View customer needs: Products owned, previous complaints, enquiries etc System routes calls to correct division Accurate information reduces call time Productivity and quality of service is in increased while transaction time is reduced Customer happier cause less time and better answer Web-based self-service capabilities: personalised support information online |
| Marketing (10) | Event-based marketing: automated offer to customer when he/she shows interest Provide product/service information Acquiring prospect/customer data Qualify leads for targeted marketing Scheduling and tracking direct-marketing mailings Analyse market and customer data Identify profitable customers Satisfy specific customer needs Cross selling Manage and execute marketing campaigns |
| Analytical CRM (5) | Based on data warehouses: Data from operation CRM+Customer touch points Data is analysed through online analytical processing (OLAP), data mining, other techniques Analysed to identify buying patterns, profitable/unprofitable customers, and to create market segments CLTV |
| Sources of data (2+2) | Operational CRM Customer Touch points Purchased from other companies (direct marketing lists) Demographic data |
| Touch points | Points of contact that company has with customers: website, mail, telephone |
| Customer Lifetime (3) | Revenue brought in by certain customer + Cost of servicing that customer + Expected life duration of relationship with that customer |
| Difference between operational and analytical (3) | Use many of the same resources, and these resources can be considered part of Operational however the analyses of data is Analytical Operational leads to Analytical Operational connects to customers through touch points Analytical analyses data gathered from touch points |
| Companies that provide CRM | SAP Microsoft Sage Salesforce NetSuite |
| FC Bayern Munchen LV= (London Victoria) | SAP/German football club: Intensify fan experience thorugh personalised offers M.Dynamics CRM/British insurance and investement services provider: Reduced sales administration by 66% |
| Advantgages of CRM (6) | Increases customer satisfaction through better customer service Personalised service Information available across company - any member of support team can answer queries Identify effective communication channels Reduced costs for direct marketing, and customer aquisition/retention More effective marketing - increase sales |
| Churn rate | Measure of customes who stop buyingusing the brand Reduced when CRM is effective Indicate growth or fail |
| Disadvantages of CRM | Privacy Training |
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