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32 Cards in this Set

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How much of the business does CRM cover?

The whole business enterprise

________ is a business strategy, set of operational processes, and analytic tools

CRM

What is the ultimate goal of CRM?

Maximizing performance of the customer side of the enterprise

________requires a customer-centric philosophy and culture, as well as leadership and commitment to CRM from the top

CRM

_______is a timely and relevant topic that ties together a number of important concepts of modern marketing management

CRM

Is CRM an important enabler of great marketing?

Yes

CRM definition

Customer relationship management- a comprehensive business model for increasing revenues and profits by focusing on customers

3 objectives and capabilities of CRM:

Customer acquisition, customer retention, and customer profitability

When CRM focuses on product and service attributes, what are the 4 areas that we focus on?

-Customer satisfaction


-Customer loyalty


-Lifetime value of a customer


-Return on customer investment (ROCI)

The 4 stages of the CRM process cycle:

1. Knowledge discovery(learning)


2. Market planning(action)


3. Customer interaction(action)


4. Analysis and refinement(listening)

4 stages in the CRM process cycle:

1. Knowledge discovery (touchpoints, data warehouse, data mining)


2. Marketing planning


3. Customer interaction


4. Analysis and refinement (organizational learning)

What are some advantages to customer marketing?

Reduced costs, improved targeting, effectiveness, sensitivity, speed and capabilities, and improved the use of customer channel


5 CRM facilities in a customer centric culture

1. Mutually shared rewards and risk management


2. Redefining the selling role


3. Formalization of customer analysis processes


4. Proactive leadership role


5. Focusing on continuous improvement



Does CRM enable transformation into a relationship based enterprise? If so, how?

Yes, it identifies the customer, what they expect, and the value proposition of them. What kind of relationship should be build, how to foster exchange, and how to work together and share control. What is the value proposition, what do products represent, how to organize and move closer to customers, how to manage performance, and how to increase capacity for change

5 reasons the CRM fails:

1. Flavor of the month club


2. No allowances for organizational change


3. Low level of employee buy in


4.Business units silos


5. Poor training

5 reasons for CRM success:

1. Strong internal partnerships


2. Organization members collect info


3. Employee and customer friendly


4. Reporting useful data


5. High tech as necessary



Comprehensive system

Provides managers with up to the min info necessary to run their operations

5 data included in the comprehensive system:

1. Actual sales vs forecast


2. Progress on marketing plan objectives


3. Distribution channel effectiveness


4. Sales force productivity


5. Brand equity evolution

5 key benefits of a marketing dashboard:

1. Alignment of marketing within the firm


2. Development of internal relationships withe marketing


3. Est of direct links between marketing spending and profits


4. Facilitation of smoother decision making


5. Enhancement of marketing's ability to contribute

3 potential pitfalls in marketing dashboards:

1. Over reliance on inside out measurement


2. Too many tactical metrics, not enough strategic insight


3. Forgetting to market the dashboard internally

Investment decisions in marketing must consider 4 basic elements:

1. Level of investment


2. Returns


3. Risks


4. Hurdle rates

2 cautions in over-reliance on ROMI:

1. Temper the interpretation of ROMI results with review of other appropriate metrics


2. ROMI was originally designed for comparing capital projects

Market share

The percentage of a market accounted for by a specific product, product line, or brand

Penetration

A measure of brand or category popularity

Margin on sales

The difference between selling price and cost



Cannibalization rate



The reduction in sales of a firm's existing products due to the introduction of a new product

Customer lifetime value (CLV)

The dollar value of a customer relationship based on the present value of the projected future cash flows

Sales force effectiveness

By analyzing sales force performance, marketing managers can make changes to optimize sales going foward


Supply chain metrics

Measures of important indicators of a firm's success in its supply chain

Promotions and pass through

Of the promotional value provided by a manufacturer to its distributors and retailers

Cost per thousand impressions (CPM) rates

The cost per thousand advertising impressions

Share of voice/Click through rates

Quantifies the advertising presence that a specific product or brand enjoys