ADMS2511 - Chapter 9 notes

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Administrative Studies
ADMS 2511
Cristobal Sanchez- Rodriguez

Chapter 9 – Customer Relationship Management DEFINING CUSTOMER RELATIONSHIP MANAGEMENT – CRM is an organizational strategy that is customer-focused and customer-driven. It is a way of thinking rather than a process. It creates long-term relationships between the customer and the business since loyal customers are the biggest revenue generators for a business. Customer churn refers to organization losing a certain percentage of the customers. CRM aims to minimize customer churn. Its idea is to treat each customer differently as each customer is different. CRM companies share two basic elements: Customer Touch Points – diverse interactions with customers are called customer touch points which include telephone, mails and physical interaction. Additional touch points are email, websites and communication via smartphones. Data Consolidation – data warehouses make it easier to store all customer data in one place instead of being dispersed across the organization. Complete data on a customer is called a 360 degree view. Sharing of customer information leads to collaborative CRM. It integrates communication between the organization and its customers in all aspects of marketing, sales, and customer support. OPERATIONAL CRM – this part of CRM supports the front-office business processes, such as sales, marketing, and service. The two major components are: Customer Facing Applications – applications where actual interaction with customers happens • Customer Service and Support – systems that automate service requests, complaints, product returns, and requests of information. Customer interaction centers (CIC) have been implemented where channels such as web, fax, and face to face interaction support customers. CIC also creates a call list for sales prospects called outbound telesales. Customers can also call to inquire about their products or services which is called inbound teleservice. It also provides help desks which deal with complaints and service calls etc. IT also helps CIC by including email and web interaction with customers. • Sales Force Automation – SFA automatically records all aspects in a sales transaction process. This includes contact management system which records all contacts with a customer and eliminates errors. It has a sales lead tracking system which lists potential customers, sales forecasting system estimates future sales, and product knowledge system which is comprehensive source of information. • Marketing – CRM helps marketing to identify and target best customers and manage marketing campaigns. It helps with cross selling and upselling and bundling. • Campaign Management – helps send the right messages to the right people through the right channels. Also used to personalize indi
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