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Chapter 9

Chapter 9.docx

4 Pages
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Department
Administrative Studies
Course Code
ADMS 2511
Professor
Cristobal Sanchez- Rodriguez

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Description
Chapter 9 CRM: A customer-focused and customer-driven organizational strategy that concentrates on satisfying customers by addressing their requirements for products and services, and then by providing high-quality responsive service. Builds sustainable long-term customer relationships that create value for the company as well as for the customer.  Helps companies acquire new customers, retain existing customers and grow the relationships with existing customers.  Starts with marketing efforts that solicit prospectsbecome customersbecome repeat customersget segmented into low-value and high-value repeat customers  Customer churn: certain % of lost customers  Optimal result of CRM is to max the number of high-value repeat customers while min customer churn.  In essence, treat different customers differently, because their needs differ and their value to the company also may differ.  1%increase in customer satisfaction can lead to as much as a 300% increase in a company’s market cap  Successful CRM policies share two basic elements: a) company must identify the many types of customer touch points b) needs to consolidate data about each customer Customer Touch Points: any interaction between a customer and an organization.  Traditional: telephone, direct mailings, and actual physical interactions  CRM managed: e-mails, websites, and communication via smart phones.  Data consolidation is critically important to an organizations CRM efforts  Interconnected systems built around a data warehouse allow all customer- related data available to every unit of business360-degree view of a customer Collaborative CRM systems: Provide effective and efficient interactive communication with the customer throughout the entire organization.  Integrates communication b/w the organization and its customers in all aspects of marketing, sales and customer support processes  Enables customers to provide direct feedback to the organizationblogs and wikis  Contains two major components: a) operational CRM and b) Analytical CRM Operational CRM: component of CRM that supports the front office business process; processes that directly interact with the customer, like: 1. Customer-facing CRM applications: those applications where an organizations sales, field service and customer interaction centre reps actually interact with customers. -Customer interaction centres (CIC): organizational representatives use multiple communication channels such as the web, phones, fax and face-to- face interactions to support the communication preferences of customers. -creates call lists for the sales team to contact prospectsoutbound telesales -customers interact directly with CIC to initiate sales order, inquire about products and services before ordering or obtaining info about transactionsinbound teleservice -Also provides Information Help Deskassist customers with their questions concerning products and services and also process customer complaints, which generate follow-up activities such as quality control checks, product returns and delivery of replacement -companies must place great deal of emphasis on the CRM process. -Sales force automation (SFA): The component of an operational CRM system that automatically records all the aspects in a sales transaction process -Include contact management systemstrack all contact that has been made with a customer, the purpose of the contact, and any follow-up that might be necessary. It eliminates duplicated contacts and redundancy -Also sales tracking systemlist potential customers or customers who have purchased related products -sales forecasting systemsmathematical technique
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