MISY 5380 - CRM - Ch. 1 Introduction to Customer Relationship Management verified to pass 2023/2024

MISY 5380 - CRM - Ch. 1 Introduction to Customer Relationship Management Customer Relationship Management (CRM) - correct answer enables an organization to better manage relationships with suppliers, distributors, dealers, etc. Reasons CRM is a difficult business practice to define - correct answer ► It can apply to different levels of customers. ► Some of the key components of CRM shift when considering business-to-business (B2B) versus business-to-consumer (B2C) relationships. ► The composition of CRM systems will be different in big versus small companies, even though their objectives will be the same. Key processes that help define CRM - correct answer 1. Strategy development 2. Value creation 3. Multichannel integration 4. Information management 5. Performance assessment Strategy development - correct answer At both the business level and customer level, with the latter involving decisions regarding the appropriateness of various customer segmentation approaches: mass, segmented, and one-to-one Value creation - correct answer Involves determining what product/ service attributes customers value and which customers and customer segments are valuable to the company. CRM enables companies to identify and direct relationship efforts to those with high customer lifetime values (CLV). Multichannel integration: - correct answer Involves efforts to provide the "perfect customer experience" through integrating all of the means by which consumers interact with organizations including: e-mail, mobile, social media, sales personnel, outlets, customer engagement centers (formerly called call centers or customer contact centers), direct marketing, e-commerce, m-commerce, chat, etc. Performance assessment - correct answer Includes measuring the success of CRM efforts through metrics on customer acquisition, retention, win-back, satisfaction, loyalty, and profits. Information management - correct answer Involves collecting, organizing, and using customer data and customer information from all touch points (any point of contact that a customer or prospect has with the company) in order to learn more about each customer and generate the appropriate marketing response. customer service representative (CSR) - correct answer generally working in a Customer Contact Center (CCC) B2B - correct answer business to business B2C - correct answer Business to consumer CRM definition groupings - correct answer • software package, process, system, or technology • data storage and analysis • change in corporate culture • concept of "managing demand" • new strategies focused on current customers When CRM is viewed in terms of systems, it must... - correct answer ► Gather customer data from all touch points ► Warehouse the data, providing easy access for all ► Deliver useable information based on the data A comprehensive CRM system should contain these major technology components - correct answer ► A data warehouse ► Analytical tools ► Campaign management tools ► Interfaces When CRM systems fail, it tends to be as a result of - correct answer cultural issues Transaction Marketing - correct answer views the sale as the end of the relationship, whereas relationship marketing views the sale as the beginning. Relationships require... - correct answer two-way communications between customers and the organization The goal of a company should be to - correct answer attract the greatest number of profitable customers Why "Management" is important when defining CRM - correct answer it pertains to the organization's ability to develop strategies that attract and retain customers Management - correct answer the identification of prospects, selection and acquisition of relevant prospects, and development of the relationship Managing strategies and tactics - correct answer requires effective planning and effective and timely implementation CRM is founded on these tenets - correct answer ► Customers should be managed as important assets ► Not all customers are equally desirable ► Customers vary in their needs, preferences, and buying behavior ► By better understanding their customers, companies can tailor their offerings to maximize overall value The more a company knows its customers.... - correct answer the greater the opportunity to increase market penetration and share of wallet A company knowing its customers leads to.... - correct answer greater market share and the opportunity to trade customers up and increase the speed of new product acceptance Greater market share and the opportunity to trade customers up and increase the speed of new product acceptance lead to... - correct answer quickened cash flow with less volatility and risk The focus of CRM is... - correct answer all existing customers barnacles - correct answer long-time customers The knowledge base contained in a CRM system will - correct answer aid in the acquisition of new customers As companies gather information customers, they can avoid attracting customers who... - correct answer ► buy infrequently ► buy only when products or services are on sale ► frequently return merchandise ► complain often A good CRM system... - correct answer identifies potentially profitable and unprofitable customers early on To create value, CRM systems sometimes point toward... - correct answer de-marketing to certain groups For example, it may benefit a company to add or raise fees to certain customers in order to either make them profitable or drive them away CRM systems are being used because they can enhance productivity across the range of key marketing functions - correct answer • Identifying prospects • Acquiring customers • Developing customers