Exam 8: Customer Relationship Management CRM

Customer relationship management

According to the CEO of Allied Office Products,"We're a head-count business: I know that if you have a 60-person office,you should buy $290 worth of basic office supplies-paper,pens,staples-from us with each order,but if that's all we get,we stagnate.For us to grow,we have to convince the customer,who already likes our products and service,to buy more than just basic supplies;we have to increase the order by 10,20,or 29 times." Allied's salespeople are trained to push the company's less traditional,higher-margin lines such as coffee and refreshments,printing and forms management,and office furniture.What are Allied's salespeople engaging in?

What is the term for a central repository for data from various functional areas of the organization that can be shared by all of the organization's departments?

How does the traditional approach for acquiring data from customers occur?

Data mining analyzes significant relationships simultaneously among several customer dimensions within vast data warehouses.

Multinational companies often face difficult problems when pulling together internal data about their customers.

Explain the importance of interactions in a customer relationship management system.Most colleges and universities have some form of CRM system.Describe an interaction that occurs at your institution.

In Nokia stores,"Experience Areas" feature phones connected to photo printers,speakers,notebook computers,and Bluetooth headsets to demonstrate the interactivity and full range of features available on the cell phones.These "Experience Areas" allow customers to interact with the technology and provide information to Nokia.What are the "Experience Areas" examples of?

The Toronto Blue Jays,a Major League Baseball team,used customer satisfaction surveys of season ticket holders to determine why the number of season ticket holders was declining.What was this survey an example of?

As flextime,consulting,telecommuting,and downsizing make it more difficult for people to donate blood at the workplace,Canadian Blood Services has launched a CRM marketing campaign in Toronto to boost awareness and repeat donations.Early in the campaign,it went to its listings of previous donors and pulled out those with birthdays in February,March,and April.These donors were sent a birthday card with the greeting,"On the anniversary of your life,would you consider saving another's life?" -Refer to Blood Services.Where is the information about past donors stored?

As flextime,consulting,telecommuting,and downsizing make it more difficult for people to donate blood at the workplace,Canadian Blood Services has launched a CRM marketing campaign in Toronto to boost awareness and repeat donations.Early in the campaign,it went to its listings of previous donors and pulled out those with birthdays in February,March,and April.These donors were sent a birthday card with the greeting,"On the anniversary of your life,would you consider saving another's life?" -Refer to Blood Services.Which type of list did the organization develop for donors to receive birthday cards?

Data mining is an analytical process that compiles actionable data about the purchase habits of a firm's current and potential customers.

Briefly describe six common CRM marketing database applications.

In 1981,the producers of Butterball Turkey opened the Butterball Turkey Talk-Line.Created to assist struggling cooks preparing the holiday bird,the Butterball Turkey Talk-Line was initially staffed with six home economists who responded to 11,000 phone calls in its first year.The Butterball Turkey Talk-Line is now known as "the granddaddy of all help lines." Today the staff of 45 home economists and nutritionists responds to over 100,000 questions between October and December.In keeping with its history of technological advances,Butterball launched butterball.com in 1985,one of the first consumer websites,complete with turkey preparation tips and favourite recipes from the Butterball kitchens.Butterball Turkey's commitment to providing premium products and renowned customer service has prevailed as a long-standing tradition to call on,not only at the holidays,but also all year long.Butterball has maintained a prominent position on people's holiday tables,a position it is likely to hold for many years to come. -Refer to Butterball Turkey.What are Butterball's touch points?

What is the term for the addition of information to customer or prospect records for the purpose of better describing or better determining the responsiveness of customers or prospects?

What is the term for a company-wide business strategy designed to optimize profitability,revenue,and customer satisfaction by focusing on highly defined and precise customer segments?

In a CRM system,which term describes all areas of the business where customers have contact with the company,and data may be gathered and used to guide the decision making within that business unit?

What is a marketing channel?

Describe the actions of a company that is referred to as having a customer-centric focus.

The way to people's hearts may be through their stomachs,but Kraft Foods has decided not to rely exclusively on that maxim to secure the long-term loyalty of its customers.It is also making new product developments through data generated from interaction between Kraft and its customers.Kraft Foods can best be described as which of the following?