MKT 2227 Lesson 3: Forms of CRM

Study Notes

Customer satisfaction is the fulfillment of customer needs, desires, and expectations, resulting in a positive emotional state.
Satisfied customers are less likely to switch to competitors, leading to sustainable advantages, reduced failure costs, and increased loyalty and positive word-of-mouth.

CRM software helps manage interactions and relationships with current and potential customers.
Features include centralizing customer data, tracking interactions across various channels, and streamlining sales, marketing, and customer service processes.
Popular CRM software includes Salesforce, HubSpot CRM, Zoho CRM, and Microsoft Dynamics 365.

On-premise CRM: installed locally, giving businesses full control over security and customization, but requiring significant upfront investment and IT infrastructure.
Cloud-based CRM (SaaS): hosted on remote servers, offering flexibility, scalability, and subscription-based pricing models, with maintenance and updates handled by the CRM provider.

Budget, IT infrastructure, scalability, data security, and industry-specific requirements.
The right CRM solution depends on the organization's size, industry, business objectives, and IT capabilities.

Focuses on automating tasks related to customer-facing levels, collecting customer data through various touchpoints, and using data for efficient and effective interactions.
Software solutions include marketing automation, sales force automation, and service automation.

Data warehousing: a process of centralized data management and retrieval, integrating various databases into a single repository.
Data mining: extracting implicit, previously unknown, and potentially useful information from data, using techniques such as clustering, classification, and anomaly detection.
Data mining enables organizations to determine relationships between internal and external factors, predict customer behavior, and identify patterns and regularities.

Identifying buying patterns, associating buying behavior with customer segments, analyzing responses to advertising, and identifying fraudulent activities.
Walmart's use of data mining to transform supplier relationships, capturing point-of-sale transactions and allowing suppliers to access data and perform analyses.

Reliance on dynamic, incomplete, and noisy databases, limited information, and adequacy and relevance of stored information.
Errors and inconsistencies in databases, subjective judgments, and missing data.

CRM is not just database marketing, a marketing process, an IT issue, or only about loyalty schemes.
CRM can be implemented by any organization, but requires a thorough understanding of its concepts and applications.

Eric's service station has seen a decline in regular clientele over 12 years, highlighting the need for effective CRM strategies to retain customers and build loyalty.