CRM Exam I - 22:19 , both 1.Whattheysell...

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22:19 In Which 2 general ways can companies compete, and how does CRM help enable  both? 1. What they sell? With analytics (number crunching) CRM helps with what they sell. 2. How they run? It’s a way of thinking/formal business processes that can give firms a sustainable and  competitive advantage (and greater profits) from how thy view and value and manage  relationships. Customers  Employees and employers Suppliers and other partners Investors ** CRM helps us do what we have always done, but…  Faster, better and more reliably. Helps with all the marketing and mix elements Product (better segmentation) Price (segments with higher perceived value) Place Promotion Customer Experience Sales automation Touch points: Multiple little aspects of a brand—any point of interaction between the  customer and product.  Exist wherever customers come into virtual or concrete contact  with a company’s products, services, communications, places, people, processes or  technologies. CRM is managing these touch points into once focus
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Look at customer segments and focus on different segments (for larger  businesses)rather than individuals. *** TREAT DIFFERENT CUSTOMERS DIFFERENTLY*** (either within  segments of with individuals) Will increase PROFIT and BUSINESS Able to PRICE HIGHER because of CRM Customers get more VALUE from product  Willing to SPEND MORE because of CRM Moment of Truth: Occur during customer interactions at touch points.  These are the  moment when customers form evaluate judgments, positive or negative, about their  experience. Big River Case Study Was a long distance phone company  Started selling internet connections, cell phone services and VOIP Went from a monopoly to   highly competitive  In monopoly companies, you don’t need customers to like you because the consumers  need your services They wanted a CRM solution to ensure they held onto their customers and differentiate  themselves from competitors—be more customer focused THE DESIRE TO CHANGE CAME FIRST The commitment first, followed by finding the tools to do so.  During Big Beaver, CRM allowed the company to be proactive with consumers using  account records to find where they were and who was affected to help  Competitive advantages are temporary 4 Primary Uses of CRM 1.  Strategic:  A core customer centric business strategy that aims at winning  and keeping profitable customers 
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Like what big river did 3-5 years for ROI 2. Operational:  Focuses on the automation of customer facing processes  such as selling, marketing, and customer service.
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  • Spring '13
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