HPC4-Group-5-Reporting-CRM-PDF

MER RELA TI ON TO S CUS Management HIP  CUSTOMER RELATIONSHIP MANAGEMENT (CRM) “The infrastructure that enables the delineation of and increase in customer value, and the correct means by which to motivate valuable customers to remain loyal—indeed to buy aga...

MER RELA TI ON TO S CUS Management HIP  CUSTOMER RELATIONSHIP MANAGEMENT (CRM) “The infrastructure that enables the delineation of and increase in customer value, and the correct means by which to motivate valuable customers to remain loyal—indeed to buy again.” CRM’S ROLE IN SUPPLY CHAIN MANAGEMENT  Firms must create methods for finding & developing good suppliers. Firms must create methods for becoming & staying good suppliers themselves. It may be necessary for a firm to certify its intermediate customers as to their ability to adequately represent their firm’s products.  KEY TOOLS & COMPONENTS OF CRM SEGMENTING CUSTOMERS Grouping customers to create specialized communications about product. TARGET MARKETING EFFORTS E-mail or direct mail saves labor & postage, reduces chances of being a nuisance. RELATIONSHIP MARKETING OR PERMISSION MARKETING Customers select the type & time of communication. Requires software & customer participation. CROSS SELLING Additional products are sold as the result of initial purchase. PREDICTING CUSTOMER BEHAVIORS Firms forecast likelihood of customers' purchases. CUSTOMER DEFECTION ANALYSIS Finding methods to retain customers. CHURN REDUCTION Reducing customer defections. CUSTOMER VALUE DETERMINATION Verify the customer lifetime value for individuals or segments. EVENT BASED MARKETING Finding methods to retaoffer the right products & services to customers at the right timein customers.  CALCULATING LIFETIME CUSTOMER VALUE WHERE : a= average annual profit, or the (annual sales x profit margin) i= annual discount rate n= expected lifetime in years Using a discount rate of 8%, and treating the avarage sales figures as annuities, the present value of the two nursery lifetime values is : Based on these lifetime value calculations, Nursery B is the more important customer. AUTOMATED SALES FORCE TOOLS SALES FORCE AUTOMATION (SFA) Used for documenting field activities, communications with the home office, & retrieving sales history. SALES ACTIVITY MANAGEMENT Tools offering sales reps a guided sequence of sales activities. SALES TERRITORY MANAGEMENT Sales managers obtain information of each sales rep’s activities. LEAD MANAGEMENT Sales reps can follow prescribed tactics when dealing with prospects to aid closing the deal. KNOWLEDGE MANAGEMENT Enables quick decision making, better customer service, & a betterequipped & happy sales staff. SEVEN RS RULE Having the right product In the right quantity In the right condition At the right place At the right time For the right customer At the right costs  MANAGING CUSTOMER SERVICE CAPABILITIES Performance measures are frequently crafted to align with meeting the seven Rs. However, the provision of such services may entail associated costs. CUSTOMER SERVICE ELEMENTS PRE-TRANSACTION ELEMENTS Precede the sale with elements such as customer service policies, the mission statement, organizational structure, and system flexibility. TRANSACTION ELEMENTS Events during the sale should encompass the order lead time, order processing capabilities, and the accuracy of the distribution system. CUSTOMER SERVICE ELEMENTS POST-TRANSACTION ELEMENTS Post-sale activities should incorporate warranty repair services, efficient complaint resolution procedures, product return processes, and comprehensive operating information. CALL CENTERS By categorizing calls, calculating average resolution times, forecasting future demand, and enhancing overall staff productivity, we can elevate customer satisfaction levels.  WEBSITE SELF-SERVICE Web sites act as support mechanisms for call centers. Customers can access their account information & operating hours, contact information, etc. FIELD SERVICE MANAGEMENT Customers can communicate directly with product specialists using wireless devices & the right diagnosis can be made quickly. MEASURING CUSTOMER SATISFACTION Customers are frequently given opportunities to provide feedback about a product, service, or organization. CUSTOMER PRIVACY CAPABILITIES Two critical issues to address are ensuring privacy and minimizing customer harassment.  DESIGNING & IMPLEMENTING A SUCCESSFUL CRM PROGRAM STEP 1. CREATING THE CRM PLAN : Objectives of the CRM program CRM’s fit with corporate strategy New applications to be purchased or developed Integration or replacement of existing legacy systems Personnel Requirements- personnel, training, policies, Upgrades, & maintenance & The costs & time frame for implementation STEP 2 - INVOLVE CRM USERS FROM OUTSET Create a project team with members from all affected organizational areas. Test with a pilot application STEP 3 - SELECT THE RIGHT APPLICATION & PROVIDER Visit trade show, read trade literature, hire consultant, etc. Compare based on performance, security, reporting capabilities, system availability, etc. STEP 4 - INTEGRATE EXISTING CRM APPLICATIONS Customer contact mechanisms need to be coordinated so that every CRM user in the firm knows about all of the activity associated with each customer. Centralized database or data warehouse containing all customer information. Step 5: Establish Performance Measures This allows the firms to ; Determine if objective have been met Compare actual to planned variance Step 6: Providing CRM training for all users Provide and require training for all of the initial users and then provide training on an ongoing basis as applications are added.  TRENDS IN CRM Customer Data Privacy Rules and regulations governing privacy invasion encompass the Patriot Act in the United States and Internet Privacy laws in the European Union. Social Media Creating and cultivating virtual communities around product or brand is a powerful way to engagement consumers.  TRENDS IN CRM Cloud Computing (Software as device) - Ala carte and on demand offerings accessed via web browser. - Changing the cost structure of CRM applications.  NK YOU FOR LISTENIN THA G! Group 5 Hernandez, R. Palad, G. Pingol, M. Pimentel, P. Rogas, R. Santos, Z. Salvador, G. Oamerga, K.