Term
IT's impact on business today - *
Name two ways business has been influeced by IT
|
|
Definition
Internet popularity
- High percentage of users
- Email
- Facebook
- New websites
News & Media
|
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Term
Information Technology Capital Investment - ***
What effect does IT investment have on Total investment? |
|
Definition
IT is the main driver of total investment over the past few decades. |
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Term
A business information system - **
After receiving an input what 4 processes does an Info System do to create an output? |
|
Definition
- Processing
- Classify
- Arrange
- Calculate
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Term
Inoformation Systems is made up of what 3 broad catagories? * |
|
Definition
- Organization
- Technology
- Management
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Term
Management Information Systems is made up of 3 Technology and 3 Behavioral approaches. List them. * |
|
Definition
Tech:
- Management Science
- Computer science
- Operations research
Behavioral:
- Socialogy
- Economics
- Psychology
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Term
Tech Dimensions of IS - ** |
|
Definition
- Hardware
- Software
- Storage
- Communications technology
- Networks
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Term
Organization-IT Interdependence *
IS communicates Business objectives and processes with what 3 aspects of software? |
|
Definition
- Hardware
- Data management
- Telecommunications
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Term
Strategic Business Objectives of IT **
There are 6 objectives, with examples. |
|
Definition
- Operational excellence
- New products, services, and business models.
- Customer and supplier intimacy
- JCPenny and TAL - utilize customer data
- Improved decision making
- Verizon - shortened customer service call times
- Competative advantage
- Survival
- Citibank - first to put out ATM's
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Term
Variation of ROI of IT ***
Explain the benefits and drawbacks of investing in IT |
|
Definition
Benefit: on average investments in IT are far above other investments
Drawback: Variation is much higher across firms (risky) |
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Term
Complementary Assets **
List some assets that complement of each of the following aspects of business:
- Organizational Assets
- Managerial Assets
- Social Assets
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|
Definition
Organizational
- Culture
- Business model
- Processes
- IS Developement
Mangerial
- Management Support
- Innovation
- Teamwork
- Training
Social
- Society's invetment
- Laws and regulations
- Internet
- Education
- IT Services
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Term
Four Major Business Functions **
List them. |
|
Definition
- Sales & Marketing
- Manufactuing & Production
- Finance & Accounting
- Human Resource
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|
Term
List the 3 levels of of business and what information systems pertain to that level. ** |
|
Definition
Strategic Level (top)
- ESS - Executive Support System
Management Level (middle)
- MIS - Management Information Systems
- DSS - Decision-Support Systems
Operational level (bottom)
- TPS - Transaction Processing Systems
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Term
What is TPS, and when is it used? ** |
|
Definition
TPS - Transaction Processing System
TPS is used by employees to support operational activities and transactions |
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|
Term
What is MIS, and when is it used? ** |
|
Definition
Management Information Systems
MIS is used to sum up all relevant information for management to make educated decisions. |
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|
Term
What is DSS, and when is it used? ** |
|
Definition
Decision Support System
Takes in various information, analyzes the data and gives the best possible solution. |
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Term
What is ESS, and when is it used? |
|
Definition
Executive Support System
ESS is used to monitor each devision of a company and make broad strategic executive decisions. |
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Term
Order Tracking System
What type of:
Business Function?
Information System? |
|
Definition
Manufacturing & Production
TPS |
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Term
Order fulfillment System e.g. NewEgg
What type of:
Business Function?
Information System? |
|
Definition
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Term
Order fufilment process *
Name the function of each of the following processes
- Sales
- Accounting
- Manufacturing and Production
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Definition
Sales
- Generate and submit order
Accounting
Manufacturing & Production
- Assemble product
- Ship product
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Term
Challenges and oppurtunities with IT consearning Customer satisfaction in information Era |
|
Definition
Challenge:
More "empowered" customers - online forums and customer reviews can tarnish your product
Oppurtunity
More "involved" customer - fish for feedback on your product to improve |
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Term
CRM - Acronym for what? **
An enterprice applicatin taht helps firms manage ________ with customers. |
|
Definition
Customer Relationship Management
"relationships" |
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Term
From Marketing *
Explain some benifits of a high customer retention, and good customer service. |
|
Definition
Cost is 1/6th of a new customer.
Dissatisfied customers gossip
Profits increase 85% by increasing customer retention by 5%
Odds of selling to a new customer - 15%
Odds of selling to an existing customer - 50% |
|
|
Term
Beyond Sales... **
The front office is the focus of the:
a. Sales department
b. Entire company |
|
Definition
|
|
Term
Beyond Sales... **
With new CRM technology business models are shifting from _________-based to _________-service based. |
|
Definition
from "transaction"-based business model to "service"-based business model. |
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|
Term
Beyond Sales... **
Customer Centricity definition |
|
Definition
Maxime value of every customer interaction |
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Term
Customer Loyalty Management Process Map *
After entering customer information into the CRM database, what are the three possible routes to manage their service? |
|
Definition
Returning Customer?
- w/ high value and loyalty
- Provide special offers and service*
- w/o high value and loyalty
- Route to best agent to resolve issue*
New Customer?
- Route to best agent to resolve issue*
* = end result |
|
|
Term
Functions of CRM *
List a few functions of CRM |
|
Definition
- Manages ways used by firms to deal with existing and potential new customers
- Captures customer data
- Consolidates customer data and provides analytical tools for answering questions
- Provides a unified view of customers across the company
- Distribute customer info to variosu systems and customer touch points
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Term
Touch Points *
3 Good
3 Bad |
|
Definition
Good
- New product offerings to customers in need
- Customized website
- Product promotions to right customers
Bad
- Junk mails
- Phone calls at wrong time
- SPAM
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Term
How CRM System Supports Marketing *
What two mediums of communication generate the best response |
|
Definition
Telephone (30.8%) & Direct Mail (29.2%) |
|
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Term
Customer Relationship Management (CRM) **
Provides/organizes customer data to aid in these three fields.
List the fields and explain how they are helped. |
|
Definition
Sales
- Telephone sales
- Web Sales
- Retail Store sales
- Field Sales
Marketing
- Campaign data
- Content
- Data Analysis
Service
- Call center data
- Web self-service
- Wireless data
|
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Term
Example of CRM Software Capabilities *
List the 3 uses of customer data and how you can use that data. |
|
Definition
Sales
- Account management
- Lead management
- Order management
- Sales planning
- Field sales
- Sales analytics
Marketing
- Campaign management
- Channel promotions management
- Events management
- Market planning
- Market operations
- Marketing analytics
Service
- Service delivery
- Customer satisfaction management
- Returns management
- Service planning
- Call center & help desk
- Service analytics
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Term
Operational CRM **
Define operational CRM and give examples |
|
Definition
Managing customers face to face, sales, service and marketing.
Examples include:
- Campaign management
- e-marketing
- account and contact management
- lead management
- telemarketing
- telselling
- e-selling
- field sales
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Term
Analytical CRM **
Define and give examples of Analytical CRM |
|
Definition
Analyzes customer data generated by operational CRM applications to provide information for improving business performance.
Examples include:
- Develop customer segmentation and profiles
- analyze customer or product profitability
- identify trends in sales length cycle
- analyze leads generate and conversion rates
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Term
Analytical CRM Data Warehouse *
The Customer Data Warehouse plays what role within CRM? |
|
Definition
The Customer Data Warehouse collects data from channels within the company and other sources. It then uses analysis tools and data mining to provide info on profitable customers, market segments, customer profiles and churn rates. |
|
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Term
Business Value of CRM Systems **
What are the values of a CRM System (6 total)
know the 2 bold ones |
|
Definition
- Increased customer satisfaction
- More effective marketing and reduce direct marketing costs
- Lower costs for customers acquisition and retention
- Increased revenue from identifying most profitable customer and segements of marketing, cross-selling, up-selling
- Reduce churn rate: Number of customers who stop using or purchasing products or services from a company.
- Realizing Customer Lifetime Value (CLTV): Difference between revenues and expenses minus the cost of promotional marketing used to retain an account.
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Term
CRM Performance Measurement **
List ways to measure CRM effectiveness (5 total) |
|
Definition
- Cost per lead
- Cost per sale
- Number of repeat customers
- Churn rate
- Sales closing rate
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Term
Name 4 types of IT and a company that utilizes that
1. |
|
Definition
Pricing and marketing: QuiBids/Priceline/Groupon
Selling direct: Amazon Fresh/Dell/MINIUSA
Digital goods: iTunes/Amazon Kindle
C2C commerce: Craigslist/eBay/Prosper.com/GetAround |
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|
Term
What are 3 types of media IT is prevalent in and an example of its use in that type?
1. |
|
Definition
TV: HDTV / Interactive TV / 3D TV / Google TV
Music: Spotify / Satellite Radio / iCloud / Google Music
Movie: Netflix / Amazon VOD / Hulu |
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|
Term
What are examples of IT in Gaming, Social Networking, & Virtual Communities?
1. |
|
Definition
Gaming: MW3 / WoW / Second Life / Kinect / Wii
Social: Facebook / MySpace / LinkedIn / Twitter
Virtual Communities: Wikipedia / Flickr / YouTube / Instagram |
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Term
|
Definition
Broad subject conerned with technology and other aspects of managing and processing information especially in large organizations. |
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|
Term
What are computer professionals called? Division of company that deals with software technlonogy called? |
|
Definition
IT Specialists
IT department |
|
|
Term
|
Definition
System (includes hardware, software, people, & communications systems) that collects and rocesses data and provides it to managers at all levels who use it for decision making, program implementation, and control. |
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Term
What are the four roles of IS?
2. |
|
Definition
Functional support role
Decision support role
Strategic support role
Performance monitoring role |
|
|
Term
What are the historical IT views and what they were viewed as?
2. |
|
Definition
Connection View (~1970-95) IT as Tool
Immersion View (~1991-2012) IT as Environment
Fusion View (~2012 - ?) IT as Fabric
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|
Term
What is the idea of Ubiquitous Computing?
1. |
|
Definition
Computing/technology surrounds us. WiFi, laptops, cell phones, projectors, tvs. It requires focused effort to remove yourself from tech environment. |
|
|
Term
What are some voice recognition applications?
1. |
|
Definition
Siri, GPS, Shazam, Phone operator systems |
|
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Term
What is special about today's business vs business 50+ years ago.
1. |
|
Definition
Doing business on a Global Scale
Overcoming regional/country differences and similarities |
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Term
To be good at everything means being good at nothing.
--Old Chinese Idiom
What is it referring to?
1. |
|
Definition
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|
Term
What are challenges/impacts of the ubiquitous environment?
1. |
|
Definition
- Organizational
- Economic
- Technological
- Political, cultural, social, etc.
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Term
List an example of the benefits for business specialization for each section (Factories, Remote offices, Business Partners, Suppliers, Customers) |
|
Definition
Factories
- Just-in-time production
- Continuous inventory replenishment
- Production planning
Remote offices
- Communicate plans and policies
- Group Collaboration
- Electronic communication
- Scheduling
Business Partners
Suppliers
- Procurement
- Supply chain management
Customers
- Online marketing
- Online sales
- Built-to-order products
- Customer service
- Sales force automation
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Term
IT is considered a key enabler. What does that mean/refer to?
1. |
|
Definition
Without IT, communications between retailers, distributors, customers, etc. would not be as efficient or information rich. IT enables many types of info: inventory, shipping, production, procurement, order processing, and planning & scheduling. |
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Term
What is the history of adoption of Global Outsourcing in the US (% & Year --> % and Year)
2. |
|
Definition
Global Outsourcing increased from 40% of US largest manufacturers (1991) to 80% (2004). |
|
|
Term
What % of companies experienced cost saving from outsourcing?
2. |
|
Definition
61% of global companies using outsourcing experience cost saving
|
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|
Term
What % of companies utilizing outsourcing found increasing ability to focus on core business?
2. |
|
Definition
57% found increasing ability to focus on core business
|
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|
Term
What % of companies utilizing outsourcing reported improvements in process speed?
2. |
|
Definition
50% reported improvements in process speed |
|
|
Term
What is the relationship between a website & webpage?
2. |
|
Definition
Website contains webpages |
|
|
Term
How does someone access a website?
2. |
|
Definition
Client sends request to a server. Server sends data back. |
|
|
Term
What is the impact of the architecture of enterprise applications?
1. |
|
Definition
Enables enterprise applications to automate processes that span multiple business functions (S&M, M&P, Fin & Acc, HR) and organizational levels (programmer - CEO) and may extend outside the organization (Suppliers, Customers, etc.). |
|
|
Term
|
Definition
|
|
Term
What is an Enterprise Resource Planning System?
1. |
|
Definition
A cross-functional enterprise system that allows different software modules to communicate with each other and utilize each other's data.
|
|
|
Term
What is the traditional view of systems?
2. |
|
Definition
Business functions (M&P, Fin & Acc, S&M, HR) utilize business processes to communicate with their corresponding Information Systems (M&P Systems, Fin & Acc Systems, etc.). Vendors and customers outside the "organizational boundaries." |
|
|
Term
How do Enterprise Systems Work?
2. |
|
Definition
All business processes communicate with a centralized database to access information required to complete their tasks. (HR can see how many hours worked, labor cost, and job skills of an individual) |
|
|
Term
What are ERP benefits?
2. |
|
Definition
Decision support and Knowledge Management (KM): provides cross-functional information on business performance to managers, increases decision speed & effectiveness.
Enterprise agility: breaks down walls of business processes, accelerates transfer of information between departments |
|
|
Term
What are the challenges of Enterprise Systems?
1. |
|
Definition
Difficult to build: requires fundamental changes in the way the business operates
Technology: Requires complex software; large investments of time, money, expertise
Centralized organizational coordination and decision making: Not best way for all firms to operate |
|
|
Term
Costs of ERP (pie-chart)
2. |
|
Definition
Reengineering: 43%
Data Conversions: 15%
Training and Change Management: 15%
Sofware: 15%
Hardware: 12% |
|
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Term
What is a Supply Chain Management System? (SCM)
2. |
|
Definition
Enterprise application that helps manage relationshiop with suppliers.
Macy's sends purchase data to suppliers so they can analyze what colors are popular, when to restock, etc. |
|
|
Term
What is a supply chain?
2. |
|
Definition
Network of organizations and business processes for getting raw materials, turning them into products, and distributing to customers. |
|
|
Term
Which directions do materials, information, and payments flow through the supply chain?
2. |
|
Definition
Supplies: downstream
(raw materials -> finished product -> consumer)
Information: upstream & downstream
(supplier <- purchase info ; tracking info -> consumer)
Payments: upstream
(supplier <- firm <- consumer) |
|
|
Term
|
Definition
Note the tiers of suppliers, flow from Nike <-> Distributor <-> Retailer <-> Customer
[image] |
|
|
Term
Name 2 key processes of SCM for each:
Plan, Source, Make, Deliver, Return
2. |
|
Definition
|
|
Term
What are 2 functions of SCM Systems?
2. |
|
Definition
- Decide when and what to produce, store, and move.
- Rapidly communicate orders/product design
- Track status of orders/shipment
- Check inventory availability; monitor inventory levels
- Reduce inventory, transportation, & warehousing costs
- Plan production based on actual customer demand
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|
Term
Define the push-based and pull-based models. Who uses them? (SCM)
3. |
|
Definition
Push-based: Production master schedules based on forecasts of demand for products; products "pushed" to customers (Fashion industry)
Pull-based: Supply chain driven by actual customer orders (Dell) |
|
|
Term
|
Definition
|
|
Term
What are the 3 Supply Chain Management Applications?
2. |
|
Definition
- Supply chain management systems: Automate flow of info between company and supply chain partners
- Supply chain planning systems: Generate demand forecasts for a product; help develop sourcing & manufacturing plans
- Supply chain execution systems: Ensure products delivered to right locations in most efficient manner. Manage flow of products thru distribution centers and warehouses.
|
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|
Term
What are the metrics used to evaluate Supply Chain Performance?
2. |
|
Definition
- Fill rate
- Average time: order to delivery
- Number of days of supply in inventory
- Forecast accuracy
- Cycle time for sourcing and making a product
|
|
|
Term
What are two benefits of SCM systems?
1. |
|
Definition
- Close coordination of activities involved in buying, making, and moving product; match supply w/ demand
- Integrates supplier, manufacturer, distributor, and customer logistics; including reverse logistics
- Reduces time, redundant effort, and inventory costs; minimizes inventory level
- Helps in procurement of materials & transformation of raw materials into intermediate and finished products
- Helps in distribution of the finished products to customers
- Speed product time to market; use assets more effectively
|
|
|
Term
What is the "Future Internet-Driven Supply Chain?"
1. |
|
Definition
A chain with not beginning or end, communication/information flowing throughout.
[image] |
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|
Term
Growth of e-Commerce
From graph, 1994 - 2104, what is the projected growth?
1. |
|
Definition
1994: just above $0 billion
2014: projected $350 billion |
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|
Term
Traits of e-Commerce
Name 3
2. |
|
Definition
- Ubiquity: shop anywhere
- Global reach: shop anywhere
- Universal standards: Communications between different systems are seamless
- Increases richness: Internet increases depth, detail, and scope of info
- Interactivity: More interactions with customers
- Information density: Reduces information cost and information asymmetry
- Personalization: Individualized commerce
- Social technology: user-generated content
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|
|
Term
What do digital markets reduce?
1. |
|
Definition
Information asymmetry
Search costs
Transaction costs
Menu costs |
|
|
Term
What do digital markets enable?
1. |
|
Definition
Price discrimination
Dynamic pricing
Disintermediation |
|
|
Term
Digital Markets Compared to Traditional Markets
3. |
|
Definition
Digital markets reduces over cost, reduces information asymmetry, delays gratification, has stronger network effects, and disintermediates the transaction.
Traditional markets have a higher overall cost, instant gratification, high info asymmetry, intermediation, and weaker network effects.
Chart on pg. 380 |
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|
Term
What is the fundamental basis of e-Commerce? Why do people use it?
1. |
|
Definition
Revenues generated from customers who see it having a superior value to traditional markets. |
|
|
Term
What is one e-Commerce Revenue Option from each group?
Commerce, community, content, infrastructure
1. |
|
Definition
Commerce:
- Product sales
- Commissions
- Sales or transaction fees
Content:
- Subscription fees
- Document fees
- Registration fees
Community:
- Ad fees
- Referral fees
- Membership fees
Infrastructure:
- Software/hardware sales or license
- Maintenance/update
- Integration/install
- Hosting/access fees
|
|
|
Term
|
Definition
Provides initial point of entry to Web
ex. Yahoo.com, MSN.com |
|
|
Term
|
Definition
Online retail store for goods
ex. Amazon.com, Newegg.com |
|
|
Term
What is a content provider?
2. |
|
Definition
Provides digital content
ex. WSJ.com, ESPN.com |
|
|
Term
What is a transaction broker?
2. |
|
Definition
Facilitates online transactions
ex. eTrade.com, Expedia.com |
|
|
Term
What is a market creator?
2. |
|
Definition
Provides a trading platoform for individuals and firms
ex. eBay.com, craigslist.org |
|
|
Term
What is a service provider?
2. |
|
Definition
Provides online services, including search
ex. flickr.com, PayPal.com |
|
|
Term
What is a community provider?
2. |
|
Definition
Provides online community to focused groups
ex. MySpace.com, facebook.com |
|
|
Term
What are two properties of information goods?
Example?
2. |
|
Definition
- Information based
- Big fixed cost
- Small or negligible variable cost
- Easy versioning and pricing
Ex. Movie, record, book, research paper, etc. |
|
|
Term
What is the goal of versioning?
2. |
|
Definition
To charge as many people as possible the price as high as possible. |
|
|
Term
What is the theoretical basis of versioning? What is its purpose?
Is it easier to version information goods or physical goods?
2. |
|
Definition
Price discrimination. Purpose is to capture consumer surplus
Information goods. Same product, different modules enabled/disabled. |
|
|
Term
Costs of Digital vs. Traditional Goods
3. |
|
Definition
Digital goods have zero marginal cost, high cost of production, and low copying, dributed delivery, and inventory costs. Marketing and pricing are variable.
Traditional goods have high marginal, copying, distributed delivery, and inventory costs. Variable cost of production and market cost. Fixed pricing.
Chart pg. 381 |
|
|
Term
The study by Brynjolfsson and Smith (2000) showed what about prices for online and conventional stores?
2. |
|
Definition
Prices online < conventional store
Price fluctuation online > conventional store
Price dispersion online > conventional store |
|
|
Term
Why should prices online be lower than traditional stores?
3. |
|
Definition
Regular shopping provides:
- Affective processing (images, sounds, smells) leading to impulse buys vs cognitive faculties (price and feature comparison)
- Invisible trasaction costs (gas, time, parking) vs. visible (shipping)
- Instant gratification vs. delayed gratification
|
|
|
Term
What is cost transparency?
2. |
|
Definition
Ability of consumer to determine the premium the seller is charging. |
|
|
Term
What are direct impacts of cost transparency?
2. |
|
Definition
Low profits: (AT&T vs. Sprint) Sprint undercut AT&T showing extreme premium AT&T was charging
Services and products as commodities: (Ameritrade, e-Trade vs. Merrill Lynch) Online trading taking lower commission
Customer loyalty: (P&G)
Reputation damage by price unfairness: (Auto industry 1970s) High value, low price japanese cars coming into market |
|
|
Term
IT's impact on business today - *
Name two ways business has been influeced by IT
|
|
Definition
Internet popularity
- High percentage of users
- Email
- Facebook
- New websites
News & Media
|
|
|
Term
Information Technology Capital Investment - ***
What effect does IT investment have on Total investment? |
|
Definition
IT is the main driver of total investment over the past few decades. |
|
|
Term
A business information system - **
After receiving an input what 4 processes does an Info System do to create an output? |
|
Definition
- Processing
- Classify
- Arrange
- Calculate
|
|
|
Term
Inoformation Systems is made up of what 3 broad catagories? * |
|
Definition
- Organization
- Technology
- Management
|
|
|
Term
Management Information Systems is made up of 3 Technology and 3 Behavioral approaches. List them. * |
|
Definition
Tech:
- Management Science
- Computer science
- Operations research
Behavioral:
- Socialogy
- Economics
- Psychology
|
|
|
Term
Tech Dimensions of IS - ** |
|
Definition
- Hardware
- Software
- Storage
- Communications technology
- Networks
|
|
|
Term
Organization-IT Interdependence *
IS communicates Business objectives and processes with what 3 aspects of software? |
|
Definition
- Hardware
- Data management
- Telecommunications
|
|
|
Term
Strategic Business Objectives of IT **
There are 6 objectives, with examples. |
|
Definition
- Operational excellence
- New products, services, and business models.
- Customer and supplier intimacy
- JCPenny and TAL - utilize customer data
- Improved decision making
- Verizon - shortened customer service call times
- Competative advantage
- Survival
- Citibank - first to put out ATM's
|
|
|
Term
Variation of ROI of IT ***
Explain the benefits and drawbacks of investing in IT |
|
Definition
Benefit: on average investments in IT are far above other investments
Drawback: Variation is much higher across firms (risky) |
|
|
Term
Complementary Assets **
List some assets that complement of each of the following aspects of business:
- Organizational Assets
- Managerial Assets
- Social Assets
|
|
Definition
Organizational
- Culture
- Business model
- Processes
- IS Developement
Mangerial
- Management Support
- Innovation
- Teamwork
- Training
Social
- Society's invetment
- Laws and regulations
- Internet
- Education
- IT Services
|
|
|
Term
Four Major Business Functions **
List them. |
|
Definition
- Sales & Marketing
- Manufactuing & Production
- Finance & Accounting
- Human Resource
|
|
|
Term
List the 3 levels of of business and what information systems pertain to that level. ** |
|
Definition
Strategic Level (top)
- ESS - Executive Support System
Management Level (middle)
- MIS - Management Information Systems
- DSS - Decision-Support Systems
Operational level (bottom)
- TPS - Transaction Processing Systems
|
|
|
Term
What is TPS, and when is it used? ** |
|
Definition
TPS - Transaction Processing System
TPS is used by employees to support operational activities and transactions |
|
|
Term
What is MIS, and when is it used? ** |
|
Definition
Management Information Systems
MIS is used to sum up all relevant information for management to make educated decisions. |
|
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Term
What is DSS, and when is it used? ** |
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Definition
Decision Support System
Takes in various information, analyzes the data and gives the best possible solution. |
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Term
What is ESS, and when is it used? |
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Definition
Executive Support System
ESS is used to monitor each devision of a company and make broad strategic executive decisions. |
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Term
Order Tracking System
What type of:
Business Function?
Information System? |
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Definition
Manufacturing & Production
TPS |
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Term
Order fulfillment System e.g. NewEgg
What type of:
Business Function?
Information System? |
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Definition
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Term
Order fufilment process *
Name the function of each of the following processes
- Sales
- Accounting
- Manufacturing and Production
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Definition
Sales
- Generate and submit order
Accounting
Manufacturing & Production
- Assemble product
- Ship product
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Term
Challenges and oppurtunities with IT consearning Customer satisfaction in information Era |
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Definition
Challenge:
More "empowered" customers - online forums and customer reviews can tarnish your product
Oppurtunity
More "involved" customer - fish for feedback on your product to improve |
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Term
CRM - Acronym for what? **
An enterprice applicatin taht helps firms manage ________ with customers. |
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Definition
Customer Relationship Management
"relationships" |
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Term
From Marketing *
Explain some benifits of a high customer retention, and good customer service. |
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Definition
Cost is 1/6th of a new customer.
Dissatisfied customers gossip
Profits increase 85% by increasing customer retention by 5%
Odds of selling to a new customer - 15%
Odds of selling to an existing customer - 50% |
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Term
Beyond Sales... **
The front office is the focus of the:
a. Sales department
b. Entire company |
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Definition
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Term
Beyond Sales... **
With new CRM technology business models are shifting from _________-based to _________-service based. |
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Definition
from "transaction"-based business model to "service"-based business model. |
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Term
Beyond Sales... **
Customer Centricity definition |
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Definition
Maxime value of every customer interaction |
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Term
Customer Loyalty Management Process Map *
After entering customer information into the CRM database, what are the three possible routes to manage their service? |
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Definition
Returning Customer?
- w/ high value and loyalty
- Provide special offers and service*
- w/o high value and loyalty
- Route to best agent to resolve issue*
New Customer?
- Route to best agent to resolve issue*
* = end result |
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Term
Functions of CRM *
List a few functions of CRM |
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Definition
- Manages ways used by firms to deal with existing and potential new customers
- Captures customer data
- Consolidates customer data and provides analytical tools for answering questions
- Provides a unified view of customers across the company
- Distribute customer info to variosu systems and customer touch points
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Term
Touch Points *
3 Good
3 Bad |
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Definition
Good
- New product offerings to customers in need
- Customized website
- Product promotions to right customers
Bad
- Junk mails
- Phone calls at wrong time
- SPAM
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Term
How CRM System Supports Marketing *
What two mediums of communication generate the best response |
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Definition
Telephone (30.8%) & Direct Mail (29.2%) |
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Term
Customer Relationship Management (CRM) **
Provides/organizes customer data to aid in these three fields.
List the fields and explain how they are helped. |
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Definition
Sales
- Telephone sales
- Web Sales
- Retail Store sales
- Field Sales
Marketing
- Campaign data
- Content
- Data Analysis
Service
- Call center data
- Web self-service
- Wireless data
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Term
Example of CRM Software Capabilities *
List the 3 uses of customer data and how you can use that data. |
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Definition
Sales
- Account management
- Lead management
- Order management
- Sales planning
- Field sales
- Sales analytics
Marketing
- Campaign management
- Channel promotions management
- Events management
- Market planning
- Market operations
- Marketing analytics
Service
- Service delivery
- Customer satisfaction management
- Returns management
- Service planning
- Call center & help desk
- Service analytics
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Term
Operational CRM **
Define operational CRM and give examples |
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Definition
Managing customers face to face, sales, service and marketing.
Examples include:
- Campaign management
- e-marketing
- account and contact management
- lead management
- telemarketing
- telselling
- e-selling
- field sales
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Term
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Definition
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Term
Analytical CRM **
Define and give examples of Analytical CRM |
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Definition
Analyzes customer data generated by operational CRM applications to provide information for improving business performance.
Examples include:
- Develop customer segmentation and profiles
- analyze customer or product profitability
- identify trends in sales length cycle
- analyze leads generate and conversion rates
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Term
Analytical CRM Data Warehouse *
The Customer Data Warehouse plays what role within CRM? |
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Definition
The Customer Data Warehouse collects data from channels within the company and other sources. It then uses analysis tools and data mining to provide info on profitable customers, market segments, customer profiles and churn rates. |
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Term
Business Value of CRM Systems **
What are the values of a CRM System (6 total)
know the 2 bold ones |
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Definition
- Increased customer satisfaction
- More effective marketing and reduce direct marketing costs
- Lower costs for customers acquisition and retention
- Increased revenue from identifying most profitable customer and segements of marketing, cross-selling, up-selling
- Reduce churn rate: Number of customers who stop using or purchasing products or services from a company.
- Realizing Customer Lifetime Value (CLTV): Difference between revenues and expenses minus the cost of promotional marketing used to retain an account.
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Term
CRM Performance Measurement **
List ways to measure CRM effectiveness (5 total) |
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Definition
- Cost per lead
- Cost per sale
- Number of repeat customers
- Churn rate
- Sales closing rate
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