UNIT I

Self- Assessment Questions

1. What is the relationship approach to business?

2. What are the ingredients of a CRM strategy?

3. What issues should a CRM strategy try to answer?

4. A CRM strategy is a paradigm shift in the way we conduct business. Comment

5. What steps can a company take to move customers up the loyalty ladder?

6. Where is your customer relationship emphasis? Is it on creating initial or stand-

7. Alone transactions (Level 1)? Is it repeat customer (Level 2)? Or do customer advocates
(Level 3) drive your success?

CASE STUDY

A major cellular service provider, AIRTEL, hired the service of synergy marketing,
an agency specialized in devising the loyalty programmes, to prepare an innovative
customer loyalty programmes. The initiatives sought to improve the customer acquisition
and retention rates of the cellular phone customers, in a market of fierce competition.

The programme implementation calls for an accurate tracking of the customer

behavior using control groups – customers like those in the loyalty programme who were
not offered membership in the programme. By comparing the behavior of the customer in
the loyalty programme with those not in the programme, the financial impact of the loyalty
programme could be very precisely determined. Since, the programme is not going to be
advertised, but informed through the mail to specific customers, a perfect “blind test” of
loyalty programme effectiveness can be created in the cellular market.

Questions

1. You have to prepare a communication plan, sample selection, design of the programme
 and data analysis approach to help synergy marketing.

2. Prepare separate plans for pre-paid and post-paid customers.

UNIT II

Self Assessment Questions

1. Explain the concept of one to one marketing?

2. What is cross selling? How can a company use it to the best advantage?

3. List down & explain the methods of cross selling.

4. How will customer retention help the organisation to be more profitable?

5. Expalain the concept & methods of call scripting.

6. What is CSM? How is it oimportant for modern organisations?

7. How can an organisation use event marketing to the best advantage?

8. What are the important aspects of CRM that will help managers in running the
organisation more efficiently?

9. What is customer value modelling? Expalin?

10. Explain how behavour prediction can increase sales revenues?

 UNIT III

Self Assessment Questions

1. What do you mean by a Sales process? What are the forms of a sales activity?

2. Define Sales Force Automation.

3. What is the significance of Sales Force Automation at individual and organizational level?

4. What factors determine the success or failure in the implementation of a Sales

force Automation process.

5. Define Lead Management .

6. What are the benefits of Lead Management

7. Highlight the different ways of improving the lead management process.

8. What do you mean by Knowledge Management ?

9. Discuss in detail the critical factors and principles for the success of Knowledge
Management .

10. Briefly highlight the significance of Knowledge Management.

11. Enumerate in detail the issues of Knowledge Management .

12. Explain in detail the activities of sharing and documenting the Knowledge in Knowledge
Management .

13. What do you mean by Force field Analysis? Discuss in detail the major

14. Components within the core package of FFA.

15. Briefly discuss the features and benefits of FFA.

16. What do you mean by eCRM? Explain its significance in today’s competitive and
dynamic business environment .
 17. Discuss in detail the measures to overcome the real and imagined barriers to
18. Write short notes on PRM and its significance.

19. What are the “partner requirements” and questions to be considered when choosing a
right PRM solution?

20. Highlight the relation between ROI and PRM.

21. Elaborate in detail the PRM lifecycle.

22. Write short notes on ERP?

23. What are the advantages and disadvantages of the implementation of ERP.
24. Discuss in detail the meaning of supply chain management and its significance in business
25. What do you mean by Supplier Relationship Management?
26. Enumerate in detail the benefits of SRM?
27. What are the four critical factors to be considered for a successful implementation of an
SRM solution.

CASE STUDY

CRM at ICICI involves increased communication between the virtual universal bank
and its customers and prospects, as well as with the group itself. The underlying idea is to
enhance every instance of contact with the customer. ICICI believed that a true customer
centric relationship can only be accomplished by considering the unique perspectives
of every single customer of the organization. Hence the pressing need to put in place a
technology enabled CRM solution.

Questions

1. How one-to-one marketing can be adopted?

2. Give steps in increasing Enterprise CRM
 UNIT III

Self Assessment Questions

1. Define Analytical CRM? What are it’s benefits?

2. What are the five Ss of Managing Customer data?
3. What are the benefits of customer data management?
4. What is Customer database? What are it’s uses?
5. Define Data Warehouse. What are its components?
6. What is data mining?
7. What are the types of data mining?
8. What are the difficulties in data mining?
9. Define Market Basket Analysis. What are it’s applications?
10. What is Click stream analysis?
11. What are the levels of click stream analysis?
12. What are the challenges of tracking with click stream data?
13. What are the types of personalization?
 14. Define collaborative filtering.
15. What are the types of collaborative filtering?

Answer Key

1. Analytical CRM is a consistent suite of analytical applications that help the firm to
measure, predict, and optimize customer relationships. To address these business
issues, analytical CRM includes a sound analytical infrastructure that allows to gather
all the relevant information about customers and organise it consistently. It’s benefits
are: Acquire new profitable customers, Improve the firm’s relationships with existing
customers by addressing their individual needs, Optimize cross-selling and up-selling
opportunities, Improve customer loyalty and reduce customers’ propensity to churn.

2. Strategy: Defining what information is really important and what customer behavior
really counts.

➢ Standards: Ensuring that “customer” and other related terms mean the same
thing throughout the organization.
➢ Systems: Allotting sufficient processing power to process all the data.
➢ Statistics: Turning data into knowledge through statistical processing.
➢ Smart people: Finding smart people to structure and interpret the analysis of
customer data.
 3. Effective data management provides a number of business benefits:

➢ Increased sales through better knowledge of customer needs

➢ Improved efficiency of business processes by eliminating duplication and wasted
data collection
➢ Increased compliance and data security through standardisation and
centralisation of data.

Other benefits are:

➢ Generating customer insight

➢ Segmenting customers
➢ Building innovation
➢ Building effective communications &
➢ Creating loyalty

4. A customer database is an organised collection of comprehensive information about

individual customers or prospects that is current, accessible, and actionable for such
marketing purposes as lead generation, lead qualification, sale of a product or service,
or maintenance of customer relationships.

Data in the customer database is used for the following purposes:

➢ Customer acquisition (identifying prospects).

➢ Customer retention (deepening customer loyalty).
➢ Increasing share of wallet by identifying which customers should receive a particular
offer.
➢ Reactivating customers by making attractive timely offers.
➢ Avoiding mistakes while interacting with customers.

5. A Data warehouse is an application with a computer database that collects, integrates

and stores an organization’s data with the aim of producing accurate and timely
management of information and support for analysis techniques, such as data mining.
It is a repository of an organization’s data, where the informational assets of the
organization are stored and managed, to support various activities such as reporting,
analysis, decision-making, as well as other activities such as support for optimization
of organizational operational processes. A Data Warehouse Architecture (DWA)
is a way of representing the overall structure of data, communication, processing
 and presentation that exists for end-user computing within the enterprise. The
architecture is made up of a number of interconnected parts:

➢ External Database Layer

➢ Information Access Layer
➢ Data Access Layer
➢ Metadata Layer
➢ Process Management Layer
➢ Application Messaging Layer
➢ Data Warehouse Layer
➢ Data Staging Layer

6. Data mining is the non-trivial process of identifying valid, novel, potentially useful,
and ultimately understandable patterns in data. Data mining, the extraction of the
hidden predictive information from large databases, is a powerful new technology
with great potential to analyze important information in the data warehouse.

7. Types of Data Mining are:

➢ Sequence Mining
➢ Web Mining
➢ Text Mining and
➢ Spatial Data Mining

8. Difficulties in data mining

➢ Limited information
➢ Noise or missing data
➢ User interaction and prior knowledge
➢ Uncertainty and
➢ Size, updates and irrelevant fields

9. Market Basket Analysis is one of the most common and useful types of data analysis
for marketing. It is an algorithm that examines a long list of transactions in order
to determine which items are most frequently purchased together. The strength of
market basket analysis is that by using computer data mining tools, it is possible to
find out, what products consumers would logically buy together.
Market Basket Analysis finds application in following areas:

➢ Store Layout Changes

➢ Product Bundling
➢ Analysis of credit card purchases.
➢ Analysis of telephone calling patterns.
➢ Identification of fraudulent medical insurance claims and
➢ Analysis of telecom service purchases.

10. Click stream analysis (sometimes called click stream analytics) is the process of
collecting, analyzing, and reporting aggregate data about which pages visitors visit,
in what order and which are the results of the succession of mouse clicks each visitor
makes.

11. There are two levels of click stream analysis, traffic analysis and e-commerce
analysis. Traffic analysis operates at the server level by collecting click stream data
related to the path the user takes when navigating through the site. E-commerce-
based analysis uses click stream data to determine the effectiveness of the site as a
channel-to-market by quantifying the user’s behavior while on the Web site.

12. Challenges of tracking with click stream data are:

i. Identifying the Visitor Origin

ii. Identifying the Session
iii. Identifying the Visitor
iv. Proxy Servers

13. There are three ways to define personalization:

Personalisation at the administrator level: Administrators can define personalisation

for each user by setting the design of the portal structure for different users.
Administrator can define roles, work sets, portal layout, and access methods for
different users.

Personalisation at the user level: Users can personalise their content within the control limits
set by the administrator.

Automatic personalisation through predictive technology: Predictive technology allows

for automatic personalisation based on user type, browser type, device type,
 user location (whether inside or outside the firewall), connection bandwidth, and
the type of event being handled.

14. Collaborative filtering (CF) is the method of making automatic predictions

(filtering) about the interests of a user by collecting taste information from many
users (collaborating). The underlying assumption of CF approach is that, those who
agreed in the past tend will agree again in the future also.

15. Types of collaborative filtering are:

i. Active filtering
ii. Passive filtering
iii. Item based filtering and
iv. Explicit versus implicit filtering

Self Assessment Quiestions

1. Briefly explain prioritizing in CRM.

2. Who should scope a CRM Project?
3. Elaborate in detail the CRM Development success metrics.
4. Explain in detail planning, construction and deployment in a CRM project.
5. Briefly explain CRM delivery system.
6. Elaborate in detail the CRM program timeline.
7. How do you plan for CRM success?
8. “Garbage in, Garbage out”, Explain.
9. Explain in detail the CRM Development team.
 10. Elaborate in detail the job roles that participate in CRM development.
11. What is the purpose of measuring CRM.
12. Explain in detail the CRM Measurement frameworks.
13. Write short notes on Customer value Analysis.
14. Briefly highlight the relation of Balanced Scorecards in CRM.
15. What are the attributes of a different CRM Measurement Framework?
16. Explain in detail the complexity in CRM Measurement.

CASE STUDY

The express services industry has been recently baptized. The market
leader of yesteryears India Posts, by virtue of its monopoly status had a run of the
market. It wallowed in the luxury of not doing anything new that would rock the
boat the British left it, as it were. I t was the unorganized sector to begin with,
that identified the unmet need of the customers and introduced in the Indian
customer to what is now recognized as the express industry.

The birth of the express industry has been the turning point for India
Posts. One would have expected that an organization with such reach and
legacy as only has, would have made the first move. But it was not to be.

In the mean time, India Posts had its knee-jerk reactions of first stiffing
competition, attempting to meet competition if at least half heartedly and they
finally resigning to the competition. But after a lot of prodding and introspection in
the true making of a sleeping giant, has woken up and is evolving strategies to
meet the challenge of competition in the new world.

Questions

1. What could be the CRM practices and strategies India Post should
adopt in the current scenario?
2. Recommend strategies for tomorrow?