Questions and Answers
What is an example of data mining in the given content?
What is a challenge of relying on databases for data mining?
What is NOT a common misconception about CRM?
What issue can occur when relying on database information?
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Why might Eric's service station benefit from data mining?
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What is an example of a product penetration analysis?
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What issue can occur when dealing with large databases?
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What is a benefit of WalMart's data mining approach?
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Why might data be incomplete in a database?
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What is a type of analysis that involves understanding customer purchasing habits?
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Study Notes
Customer Relationship Management (CRM)
- 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
- 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.
Types of CRM Software
- 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.
Factors to Consider when Selecting CRM Software
- 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.
Operational CRM
- 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 and Mining
- 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.
Examples of Data Mining
- 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.
Issues with Data Mining
- 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.
Misunderstandings about CRM
- 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.
Case Study: Eric's Service Station
- 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.
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Description
This quiz covers the concept of customer satisfaction, CRM software, forms of CRM, storing and analysing customer data, and common misunderstandings about CRM.