CRM Answers
CRM Answers
CRM Answers
• From the viewpoint of the Management, CRM can be defined as an organized approach
of developing, managing, and maintaining a profitable relationship with customers.
• By equating the term with technology, the IT organizations define CRM as a software
that assists marketing, merchandising, selling, and smooth service operations of a
business.
• As per Franics Buttle, World’s first professor of CRM, it is the core business strategy that
integrates internal processes and functions, and external networks, to create and deliver
value to a target customer at profit. It is grounded on high quality customer data and
information technology.
CRM systems are divided based on their prominent characteristics. There are four basic types of
CRM systems −
• Strategic CRM
• Operational CRM
• Analytical CRM
• Collaborative CRM
1.Strategic CRM
• Strategic CRM is a type of CRM in which the business puts the customers first. It
collects, segregates, and applies information about customers and market trends to come
up with better value proposition for the customer.
• The business considers the customers’ voice important for its survival. In contrast to
Product-Centric CRM (where the business assumes customer requirements and focuses
on developing the product that may sometimes lead to over-engineering), here the
business constantly keeps learning about the customer requirements and adapting to
them.
2.Operational CRM
• Operational CRM is oriented towards customer-centric business processes such as marketing,
selling, and services. It includes the following automations: Sales Force Automation, Marketing
Automation, and Service Automation.
• Salesforce is the best suitable CRM for large established businesses and Zoho is the best CRM
for growing or small-scale businesses.
Marketing Automation
Event-based (trigger) marketing is all about messaging and presenting offers at a particular
time. For example, a customer calls the customer care number and asks about the rate of interest
for credit card payment. This event is read by CRM as the customer is comparing interest rates
and can be diverted to another business for a better deal. In such cases, a customized offer is
triggered to retain the customer.
Service Automation
Service automation involves service level management, resolving issues or cases, and addressing
inbound communication. It involves diagnosing and solving the issues about product.
With the help of Interactive Voice Response (IVR) system, a customer can interact with business
computers by entering appropriate menu options. Automatic call routing to the most capable
employee can be done.
4.Analytical CRM
Analytical CRM is based on capturing, interpreting, segregating, storing, modifying, processing,
and reporting customer-related data. It also contains internal business-wide data such as Sales
Data (products, volume, purchasing history), Finance Data (purchase history, credit score) and
Marketing Data (response to campaign figures, customer loyalty schemes data). Base CRM is
an example of analytical CRM. It provides detailed analytics and customized reports.
Business intelligence organizations that provide customers’ demographics and lifestyle data over
a large area pay a lot of attention to internal data to get more detail information such as, “Who
are most valuable customers?”, “Which consumers responded positively to the last campaign and
converted?”, etc.
Analytical CRM can set different selling approaches to different customer segments. In addition,
different content and styling can be offered to different customer segments. For the customers,
analytical CRM gives customized and timely solutions to the problems. For the business, it gives
more prospects for sales, and customer acquisition and retention.
5.Collaborative CRM
Collaborative CRM is an alignment of resources and strategies between separate businesses for
identifying, acquiring, developing, retaining, and maintaining valuable customers. It is employed
in B2B scenario, where multiple businesses can conduct product development, market research,
and marketing jointly.
Collaborative CRM enables smooth communication and transactions among businesses. Though
traditional ways such as air mail, telephone, and fax are used in communication, collaborative
CRM employs new communication systems such as chat rooms, web forums, Voice over
Internet Protocol (VoIP), and Electronic Data Interchange (EDI).
There are collaborative CRMs with in-built Partner Relationship Management (PRM)
software application which helps in managing partner promotions. SugarCRM is a popular
collaborative CRM. It enables expert collaboration and provides state-of-the-art social
capabilities.
2) Discuss the objective CRM in detail.
The most prominent objectives of using the methods of Customer Relationship Management are
as follows −
3)What did you mean by sales force Automation? What are the
advantages of sales force Automation .
1. Increased Productivity
2. Competitive Advantage in terms of cost, revenue, and market share.
3. Timely information regarding the sales.
4. Increased customer satisfaction with the reduced response time.
5. Keeping proper records of the customer, that can be tracked down easily.
6. The sales forecast can be done accurately with the help of past sales data.
7. Efficient utilization of scarce resources.
8. Less time required by the sales manager to prepare the daily, quarterly,
monthly or annual reports.
9. sssOptimum utilization of time by the staff members.
Disadvantages of Sales Force Automation
in CRM Customer service is time Customer service can be provided at any time
04.
and space constraint. from any location.
In Customer Relationship In Electronic Customer Relationship
05.
Management wide area coverage is Management wide area coverage possible.
not possible.
In CRM quick response is possible In E-CRM quick response may or may not
06.
through telephonic call. happen poor response
Customization of information is
Customization of information for each person
13. possible but requires little changes in
is very easy.
system.
A loyalty program is a strategy in which a company provides its customers with rewards and
discounts for being loyal. It helps businesses retain existing customers and increase product
sales. A brand offers to become a part of a reward program to consumers who perform repeat
purchases with this company.
Types of Loyalty Programs
When you consider a loyalty program for your business, you can encounter various types. You
should be ready to identify the one that will comply with your purpose. Let’s look through the
most popular for you to make a choice.
• Subscription-based program. This type entails a customer paying for the service a
certain fee to use the benefits of the company. A membership fee creates barriers for
customers who can’t afford to pay for the service. This loyalty program is extremely
popular among services like Netflix, Amazon Prime, Hulu, etc.
• Points program. This is probably the most popular type. Companies provide customers
with points for each purchase. Once they have enough points, clients can redeem them
and get something for free or at a lower price. Clients can use their loyalty cards to check
the number of points at any time. Starbucks, Petco Pals, and Mariott reward their existing
customers with points they can redeem for something useful later.
• Cashback program. Customers can get a certain percentage of the money they have
spent with a business and use them later for different purposes. Banks often use this type
of appreciation. Bank of America rewards their clients with cash back rewards for using
their debit cards to pay for various products and services.
• Tier-based program. This type relies on the levels customers can unlock only when they
purchase and get a certain amount of points. For example, Sephora gives 1 point for $1
spent. Once customers earn a specific number of points, they can enter a new level with
higher discounts and exclusive products.
5 – Improvement
2 Leadership
Statement
Leaders at all levels establish unity of pur-
pose and direction and create conditions
in which people are engaged in achieving
the organization’s quality objectives.
Rationale
Creation of unity of purpose and direction and engagement of people enable an
organization to align its strategies, policies, processes and resources to achieve its
objectives.
Key benefits
• Increased effectiveness and efficiency
in meeting the organization’s quality
objectives
• Better coordination
of the organization’s processes
• Improved communication between
levels and functions of the organization
• Development and improvement
of the capability of the organization
and its people to deliver desired results
3 Engagement of people
Statement
Competent, empowered and engaged people at all levels throughout
the organization are essential to enhance its capability to create
and deliver value.
Rationale
To manage an organization effectively and efficiently, it is important
to involve all people at all levels and to respect them as individuals.
Recognition, empowerment and enhancement of competence
facilitate the engagement of people in achieving the organization’s
quality objectives.
Key benefits
• Improved understanding
of the organization’s quality objectives
by people in the organization
and increased motivation to achieve them
• Enhanced involvement of people
in improvement activities
• Enhanced personal development,
initiatives and creativity
• Enhanced people satisfaction
• Enhanced trust and collaboration
throughout the organization
• Increased attention to shared values
and culture throughout the organization
and take appropriate actions.
4 Process approach
Statement
Consistent and predictable results are achieved
more effectively and efficiently when activities
are understood and managed as interrelated
processes that function as a coherent system.
Rationale
The quality management system consists of inter-
related processes. Understanding how results are
produced by this system enables an organization
to optimize the system and its performance.
Key benefits
• Enhanced ability to focus effort on key processes
and opportunities for improvement
• Consistent and predictable outcomes through
a system of aligned processes
• Optimized performance through effective
process management, efficient use of resources,
and reduced cross-functional barriers
• Enabling the organization to provide confidence
to interested parties as to its consistency,
effectiveness and efficiency
5. Improvement
Statement
Successful organizations have an ongoing focus on improvement.
Rationale
Improvement is essential for an organization to maintain
current levels of performance, to react to changes
in its internal and external conditions and to create
new opportunities.
key benefits
• Improved process performance, organizational
capabilities and customer satisfaction
• Enhanced focus on root-cause investigation
and determination, followed by prevention
and corrective actions
• Enhanced ability to anticipate and react
to internal and external risks and opportunities
• Enhanced consideration of both incremental
and breakthrough improvement
• Improved use of learning for improvement
• Enhanced drive for innovatio
7. Evidence-based
decision making
Statement
Decisions based on the analysis and evaluation
of data and information are more likely to produce
desired results.
Rationale
Decision making can be a complex process, and
it always involves some uncertainty. It often
involves multiple types and sources of inputs,
as well as their interpretation, which can
be subjective. It is important to understand
cause-and-effect relationships and potential
unintended consequences. Facts, evidence
and data analysis lead to greater objectivity
and confidence in decision making.
Key benefits
• Improved decision-making processes
• Improved assessment of process performance
and ability to achieve objectives
• Improved operational effectiveness
and efficiency
• Increased ability to review, challenge
and change opinions and decisions
• Increased ability to demonstrate
the effectiveness of past decisions.
7.Relationship management
Statement
For sustained success, an organization manages its
relationships with interested parties, such as suppliers.
Rationale
Interested parties influence the performance of an organization. Sustained
success is more likely to be achieved when the organization manages
relationships with all of its interested parties to optimize their impact on its
performance. Relationship management with its supplier and partner
networks is of particular importance.
Key benifits
Ethical issues originating with the collection of customer data for CRM are related to secure
collection methods and to the verification of the information. Ethical companies ensure that
sensitive information such as credit credit card numbers or medical histories are collected in a
secure environment and transmitted back to the databases securely. During data collection, it is
also critical to verify the identity of the customer and the accuracy of the information being
submitted. High security for these functions is costly but ethically necessary.
Given that much of the customer data for CRM is sensitive, ethical companies ensure the data is
kept private to the maximum extent possible. To achieve this, the company must store the data in
a form or in a location not generally accessible. The data must only be consulted when necessary
for the fulfillment of a CRM task, and only those employees who handle the data to complete the
task are able to access the data. When sub-suppliers need to use the data, they must first commit
to restrictions similar to what the CRM company has in place.
Since customers must be able to withdraw from the CRM program and since their data is then
erased, the company needs a procedure in place for safely destroying customer data when it is no
longer needed. While deletion from the database is initially sufficient as long as the database
remains secure, data on obsolete equipment and equipment that changes status to non-secure is at
risk. An ethical company has detailed policies and procedures for tracking and destroying data
and keep accurate records of such activities.
Inbound and outbound logistics refer to two of the most common processes to
move goods throughout the retail supply chain. While they are similar in nature
and both involve the transportation of products across various distribution
channels, inbound logistics deals with supply and outbound logistics fulfills
demand.
Inbound logistics
Outbound logistics processes are related to the movement of end products to the
end user, often originating in a distribution or fulfillment center and then delivered
to its final destination.
The main difference between inbound and outbound logistics is to whom the
products and goods are delivered. In the context of a warehouse that’s fulfilling
direct-to-consumer orders, inbound logistics involves receiving goods from the
manufacturing plant or product creator, whereas outbound logistics focus on
getting products sent to end customers.
The comparison table below breaks out the differences between inbound and
outbound logistics processes.
Inbound and outbound logistics both focus on the transportation of goods from one
distribution network to another. Knowing how each process works is crucial to
optimizing the supply chain, reducing logistics costs, and better managing
customer expectations.
Purchasing materials
Inbound logistics includes the sourcing or buying of raw materials and products.
You and your supplier or manufacturer should record the materials and goods your
business has ordered and have proper freight shipping tracking in place.
Receiving
Once the goods arrive at a warehouse, the receiving team accepts, logs, and stows
the inventory in the appropriate inventory storage location. You’ll need a good
system for inventory tracking to help you track when and how much inventory has
arrived at the warehouse.
Reverse logistics
Order processing
The products are picked from their assigned inventory location, and inventory
counts are updated to ensure stock levels are accurate. Products are then packaged,
labeled, and sorted by carrier and service.
Shipping out finished goods
Carriers pick up the packages, and the finished products are shipped out.
Mobile phones have become a necessity in today’s age and an extremely important commodity
in our day-to-day lives. With such increased use of mobile devices like smartphones and tablets,
a new concept in sales and marketing has emerged called mobile CRM.
But what is mobile CRM, and what does it help you obtain? The main aim of mobile CRM is to
make it possible for employees to do all that they can do with a laptop on mobile from anywhere.
Nowadays, mobile CRM is a more streamlined menu and involves fewer clicks and swipes. A
mobile CRM system is designed with intuitive navigation and user efficiency without
compromising on features.
Advantages
A mobile CRM comes with many benefits for all parties, i.e., sales reps, management, and
customers.
1. Flexibility to use any device: Most mobile CRM work on mobile devices and
smartphones, including tablets. This enables an easy transition and flexibility for the sales
rep to use their own devices.
2. Mobile CRM caters to customers’ needs at all times: You can give real-time solutions to
customers. Customers prefer doing business with those who can be available even at
short notice, which mobile CRM aids in.
3. Makes it easy to push notifications: All communications can be easily pushed to a large
team with mobile CRM.
4. Location tracking: You can register your presence at your current location and start your
day directly from the customer’s location without the need to come to the office.
5. Opens business to workers apart from full-time employees: Contractors and company
partners can access information through mobile CRM without the need to log in with
passwords. Mobile CRM and other collaboration tools work hand in hand to widen the
business scope to a larger array of stakeholders.
6. Performance appraisal: All the data entered, and visits taken by the sales rep are tracked
in the mobile CRM. This helps management review the performance of employees.
Disadvantages
customer experience may worsen due to staff over-reliance on the system.
• Security and data protection issues with centralised data.
• The excess initial time and productivity cost at the implementation.
• Requires a process-driven sales organisation.
• CRM may not suit all businesses.
Since there is no one-size-fits-all approach for integration, there are various models
that help establish a connection between different applications. However, here are
five types of EAI that we can help you with:
1. Point-to-Point Integration
2. Hub-and-Spoke Integration
As the name suggests, this model uses a central “hub” where applications and
systems connect via “spokes.”
3. Bus Integration
An advanced method of the hub-and-spoke model, it performs the same tasks but
in a different architecture.
4. Middleware
This software works with application interfaces and operating systems to translate
& support communication. It simplifies data aggregation across systems using
different scripts and formats.
5. Microservices
Here are 10 steps that will help you to implement the CRM with ease:
If you don't have a strong answer to this simple question then moving ahead is just
a waste of time and resources. Identify the needs of your business that would be
benefited by the implementation of CRM and then search for the CRM that offers
you everything you are looking forward to. You can ask the team members and
discuss the same with them. Their thoughts and review can give you better ideas to
proceed.
Whether you want to bring back all the lost customers OR have a revenue increase
by 10%, the goals can be different for different companies. So, analyze the areas of
your business and prioritize it as per the necessity. It will help you in implanting
the CRM in an organized manner. It is very important to understand how a CRM
system should be implemented to meet the real needs of the company. Moreover,
assign specific and measurable targets and objectives to be achieved by the CRM
implementation. If the goals are set from the beginning then it becomes easier to
achieve desired results.
After you have defined the problem, find out the flow of your business and gather
all the documents pertaining to it. No one would like to change the course of their
business and make things difficult. For example: If your company is into sales and
marketing of a particular product, you need to identify the details regarding
acquisition of new clients, handling of VIP clients, inventory and stock
management, collection of leads and similar relevant aspects. Gathering about such
documents and policies will help to implement the CRM in a manner that will reap
maximum benefits for all the areas of your business.
Find out the gap between your current set-up and your objectives. Check for the
lacuna where the CRM tool can be implemented and the ways in which it can be
used to bridge the gap. Ideally a CRM expert consultant can conduct the analysis
for you. But if required it can be done with the help of staff members who are
proficient with CRM tool, after close examination on the current practices and
expectations. The people in the organization are well versed with the problems and
could help you to gain more from the CRM system. Closely or remotely, everyone
in the organization is involved in the system.
A wrong input gets you only flawed output. Any system is at the behest of the staff
that uses it and a CRM system can benefit you only if your business processes
provide the right data to the system. If there is any flaw while entering the
information, it won’t fetch desired results. Make specified guidelines or if required
modify practices( complex to simple) and implement uniform practices across all
the departments to reap maximum benefits. Change takes time to be accepted and
this needs to be communicated to the staff gently. More the willingness &
acceptance the staff has for the CRM, better and higher the result would be.
It is very vital to test the CRM system before going live. It helps to check the
functioning, error (if any) and the necessary rectifications that may need to be done
before going live.
After proper testing and a thumbs up from the team, CRM tool should be ready to
go live. Go live with a bang, and involve your team as well as senior management
in the process. Create enthusiasm in your company with regards to the CRM tool
and motivate them to be a part of the change. Monitor and analyze the performance
after the implementation of CRM tool. Ask your users to share their experience as
well as measures to improve the efficient usage of CRM.