Review Questions
.
9.How does CRM differ from SCM?
CRM has everything to do with customer, while SCM has everything to do with suppliers. These systems deal with opposite sides of the business.
10.What is a CRM system, and what are its primary components?
Customer relationship management (CRM) systems is not simply technology but also a corporate-level strategy to create and maintain, through the introduction of reliable systems, processes, and procedures, lasting relationships with customers by concentrating on the downstream information flows. Applications focusing on downstream information flows have three main objectives: to attract potential customers, to create customer loyalty, and to portray a positive corporate image. A comprehensive CRM system comprises three primary components:
1.Operational CRM. Systems for automating the fundamental business processes—marketing, sales, and support—for interacting with the customer
2.Analytical CRM. Systems for analyzing customer behavior and perceptions (e.g., quality, price, and overall satisfaction) in order to provide business intelligence
3.Collaborative CRM. Systems for providing effective and efficient communication with the customer from the entire organization
11.Describe the enterprise-wide changes necessary for realizing a successful CRM strategy.
Companies have to realize that a successful CRM strategy must include enterprise-wide changes, including the following:
•Policy and Business Process Changes—Organizational policies and procedures need to reflect a customer-focused culture.
•Customer Service Changes—Key metrics for managing the business need to reflect customer-focused measures for quality and satisfaction as well as process changes to enhance the customer experience.
•Employee Training Changes—Employees from all areas—marketing, sales, and support— must have a consistent focus that values customer service and satisfaction.
•Data Collection, Analysis, and Sharing Changes—All aspects of the customer experience— prospecting, sales, support, and so on—must be tracked, analyzed, and shared to optimize the benefits of the CRM.
12.Contrast operational and analytical CRM.
Operational CRM enables direct interaction with customers; in contrast, analytical CRM provides the analysis necessary to more effectively manage the sales, service, and marketing activities. Whereas analytical CRM aids in the development of a company’s CRM strategy, operational CRM helps in the execution of CRM strategy; thus, either component alone provides no real benefit for a business.
13.How does analytical CRM help in monitoring social conversations?
Web 2.0 enables consumers to interact with each other in various ways, greatly facilitating the spreading of information as well as misinformation. Monitoring such conversations can help organizations to measure public perceptions, and participating can help organizations to keep customers satisfied and maintain a positive brand image. For example, monitoring online conversations can help to assess customer sentiments, find out what people really think about a product, and discover ways for improving a product: Whereas most customers do not bother to fill out a survey about a product, they are very likely to voice their thoughts on Facebook or Twitter if they are very satisfied or very dissatisfied with a product. Analytical CRM applications such as the Social Networking Accelerator add-on for Microsoft Dynamics CRM help in monitoring and analyzing ongoing conversations on social media sites, helping to spot potential perception issues or to discover trends in customer sentiment.
8