ERP & CRM PDF

ERP & CRM © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.  Learning Goals:...

ERP & CRM © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.  Learning Goals: Define customer relationship management (CRM), and explain its importance to a small business. Discuss the significance of providing extraordinary customer service. Understand how technology can be used to improve customer relationships and the techniques used to create a customer database. © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.  Learning Goals (cont.): Explain how consumers are decision makers and why this is important in understanding customer relationships. Identify certain psychological influences on consumer behavior. Recognize certain sociological influences on consumer behavior. © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.  ERP & CRM ERP is Enterprise Resource Planning. A business management solution that companies use to manage their accounting and finances, supply chain, and operations. CRM is Customer Relationship Management. In a nutshell, CRM lets you store and manage prospect and customer information, like contact info, accounts, leads, and sales opportunities, in one central location. ERP and CRM are not dependent on each other. © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.  What is Customer Relationship Customer Management? Relationship Management (CRM) A company-wide business strategy designed to optimize profitability and customer satisfaction by focusing on highly defined and precise customer groups. © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, 14–5 in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom  What is Customer Relationship Management? Focus of CRM: (cont.) Customers rather than products Changes in processes, systems, and culture All channels and media involved in the marketing effort, from the Internet to field sales. © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, 14–6 in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom  Benefits of CRM to the Small Firm Economic benefits of maintaining relationships with current customers: ◦ Acquisition costs for new customers are high. ◦ Long-time customers spend more money than new ones. ◦ Happy customers refer their friends and colleagues. © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, 14–7 in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom  Benefits of CRM to the Small Firm (cont.) Economic benefits of maintaining relationships with current customers (cont.): Order-processing costs are lower for established customers. Current customers are willing to pay more for products. © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, 14–8 in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom  14.1 Sources of the Next Sale © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.  14.2 Essential Materials of a Successful CRM Program © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.  Outstanding Customer Relationships through Extraordinary Service Transactional Relationship  An association between a business and a customer that relates to a purchase or a business deal Beliefs about Exceptional Customer Service  Small firms possess greater potential for providing superior customer service than do large firms. © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, 14–11 in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom  Outstanding Customer Relationships through Extraordinary Service (cont.) Beliefs about Exceptional Customer Service (cont.)  Superior service creates customer satisfaction.  Customer satisfaction results in a positive transactional relationship.  Positive relationships lead to increased firm profits. © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, 14–12 in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom  Managing Customer Satisfaction  Key Elements of Customer Satisfaction: Providing the most basic benefits of the product or service. Offering general support services, such as customer assistance. Setting up a system to counteract customers’ bad experiences. Delivering extraordinary services that excel in meeting customers’ preferences and make the product and/or service seem customized. © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, 14–13 in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom  Extraordinary Service: Personal Attention Ways to Provide Extraordinary Service Do business Address on first- problems name basis Find ways promptly to help Provide Keep in custom touch service 14–14 © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.  Managing Customer Satisfaction Customer Experience Management (CEM) An approach that recognizes that with every interaction, customers learn something about a firm that will affect their desire to do business there in the future. Having a positive experience with a business becomes part of the firm’s value equation. © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, 14–15 in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom  Using Technology to Support Customer Relationship Management CRM Software Web 2.0 © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.  14.5 Highly Recommended CRM Software Packages for Small Businesses © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.  Creating a CRM Database Categories for Building a Customer Database Personal information Lifestyle and psychographic data Demographics Profile of past Internet information responses Transaction data Complaints © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.  Using a CRM Database 1. Capture relevant Creating An customer data on Effective CRM interactions across Program important touch points 2. Analyze those data to better understand customers 3. Use those insights to improve relationships with customers © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.  Using a CRM Database (cont’d)  Customer Segmentation Strategy  A process of identifying customers that fit into smaller, more homogeneous groups.  80/20 Principle  A principle that maintains that 80 percent of a firm’s sales will come from 20 percent of its customers.  Recency-Frequency Monetary Analysis  An analysis that reveals customers most likely to buy from a firm in the future because they have made purchases recently, frequently, and in amounts exceeding an established minimum.  Customer Lifetime Value (CLV)  The total profit expected from all future sales to a long-term customer. © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, 1–20 in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom  Stage 1: Need Recognition Need Recognition Occurs when a consumer realizes that her or his current state of affairs differs significantly from some ideal state. A consumer must recognize a need before purchase behavior can begin. Many factors can influence recognition of a need. Marketing strategy can be used to influence need recognition. © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, 14–21 in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom  Stage 2: Information Search and Evaluation Evaluative Criteria The features or characteristics of a product or service that customers use to compare brands Evoked Set A group of brands that a consumer is both aware of and willing to consider as a solution to a purchase need. Gaining inclusion into an evoked set requires creating market awareness of a product or service. © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, 14–22 in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom  Stage 3: Purchase Decision Factors Affecting the Purchase Decision: Brands in the evoked set Brand advertising Purchase setting: store or non-store outlet Store, catalogs, TV shopping channels, the Internet Intention to purchase: planned or spontaneous Store layout, sales personnel, and point-of-purchase displays. Ease of use of Web site © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, 14–23 in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom  Stage 4: Post-Purchase Evaluation Post-Purchase Dissonance Is the anxiety that occurs when a customer has second thoughts immediately following a purchase. Can lead to customer complaints, brand switching, or discontinuing use of the product. © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, 14–24 in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom  Stage 4: Post-Purchase Evaluation Post-Purchase Dissonance (cont.) Can reduced by: Reassurance by salespersons. Guarantees and trial periods. Customer follow-ups. Confirming information from other users. © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, 14–25 in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom  14.6 Simplified Model of Consumer Behavior (Customers as Decision Makers) © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.  Understanding Psychological Influences on Customers Needs Are the starting point for all behavior Need categories: physiological, social, psychological, and spiritual. Are seldom completely or permanently satisfied (e.g., daily newspaper). Function together (e.g., the desire for status clothing). Consumers may purchase the same product to satisfy different needs (e.g., Internet access). © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, 14–27 in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom  Understanding Psychological Influences on Customers (cont’d)  Perceptions Are individual processes that give meaning to the stimuli confronting consumers Whatever is perceived depends on the characteristics of the stimulus and the perceiver. Perceptual Categorization Is the process of grouping similar things so as to manage huge quantities of incoming stimuli. Can create a barrier (i.e., brand loyalty) to competing brands. © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, 14–28 in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom  Understanding Psychological Influences  on Customers (cont’d) Motivations Are goal-directed forces that organize and give direction to the tension caused by unsatisfied needs. Behavior variables can be analyzed to determine the motivations a consumer will internalize as an impetus to purchase a good or service. © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, 14–29 in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom  Understanding Psychological Influences  on Customers (cont’d) Attitude Is an enduring opinion based on knowledge, feeling, and behavioral tendency. Can discourage or foster behavioral tendencies to purchase a product. © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, 14–30 in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom  Understanding Sociological Influences on Customers Culture Social Classes Consumers Reference Opinion Leaders Groups © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.  Key Terms 80/20 principle motivations attitude needs culture opinion leader customer database perception customer experience perceptual categorization management (CEM) post-purchase customer lifetime value (CLV)dissonance recency- customer relationship frequency-monetary management (CRM) analysis customer segmentation reference groups strategy social classes evaluative criteria touch point evoked set transactional relationship © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.