Weekly Questions Week 10

Weekly Questions (Week 10)

Chapter 9: Customer Relationship Management And Business Intelligence

1. What is your understanding of CRM?

Customer Relationship Management or CRM is an implemented strategy for managing a business’ interaction with consumers. As a business has a relationship with its consumers, this can increase customer loyalty and as a result, allows the business to maintain or increase market share and profitability. Customer relationship management also aims to attract new customers, retain current customer and persuade former consumers to reengage with the business.

For further information, visit:

http://en.wikipedia.org/wiki/Customer_relationship_management

http://searchcrm.techtarget.com/definition/CRM

2. Compare operational and analytical customer relationship management.

‘Operational Customer Relationship Management’ supports daily operations and transactional processes. Conversely, ‘Analytical Customer Relationship Management’ supports back office operations and strategic analysis. Middle management can use analytical CRM systems to better understand the needs and wants of consumers, in order to maintain or increase market share and profitability. The distinguishable difference relating to the 2 types of CRM’s is the interaction between businesses and consumers. Operational CRM deals directly with consumers, however, analytical CRM does not.

For further information, visit:
Textbook: Baltzan, Philips, Lynch & Blakey, Business Driven Information Systems (Australian/New Zealand edition)  

http://it.toolbox.com/wiki/index.php/Operational_Customer_Relationship_Management:_The_Basics

http://datawarehouse.ittoolbox.com/documents/what-is-analytical-crm-18387

3. Describe and differentiate the CRM technologies used by marketing departments and sales departments

Marketing Departments:

• List Generator – Gathers customer information from a range of sources and segments this information into a marketing campaign. This is done through the creation of different marketing mixes aimed at different segments of the total market.

• Campaign management – guides users through the defining, planning, and scheduling of a marketing campaign.

• Cross-selling and up-selling – cross selling involves selling additional products to consumers, however, up selling involves increasing the value of the sale. This can be seen in fast food restaurants when asking if the consumer wants a drink or fries to complement what is already bought. However up selling can be seen when consumer is asked if they want to “upsize”. 
  Sales Department:
  ·         Sales management CRM systems – automate phases of the sales process, this assists sales representatives organise and direct all of their accounts.
  ·         Contact management CRM systems – deals with / maintain contact with existing customers. Maintains customer contact information.
  ·         Opportunity management CRM systems – targets marketing mix and sales opportunity at potential customers and future sales.
  For further information, visit:
  Textbook: Baltzan, Philips, Lynch & Blakey, Business Driven Information Systems (Australian/New Zealand edition) 
  

  http://en.wikipedia.org/wiki/Customer_relationship_management

  http://www.enabling.net/solutions-crm.shtml

   

    4. How could a sales department use operational CRM technologies?

Sales department can use operational CRM technologies in an attempt to increase sales through contacting existing and potential customers. Sales management CRM systems also automate the sales process which organises the consumer’s accounts, providing sales representatives with important information about the consumers. This could be used in up-selling or cross-selling when the consumer buys in future.  

For further information, visit:
Textbook: Baltzan, Philips, Lynch & Blakey, Business Driven Information Systems (Australian/New Zealand edition) 

5. Describe business intelligence and its value to businesses

“Business intelligence refers to applications and technologies that are used to gather, provide access to and analyse data and information to support decision making efforts”(Baltzan, Phillips, Lynch, Blakey 2010).Business intelligence has great importance and can be considered as invaluable. As markets are continuously changing, businesses need to identify and understand the changing needs and wants of consumers. As such, business intelligence can assist businesses in identifying if marketing campaigns are successful, which actions/activities generate profit or incur losses and also assist in identifying good and bad customers.  

For further information, visit:
Textbook: Baltzan, Philips, Lynch & Blakey,Business Driven Information Systems (Australian/New Zealand edition)  

http://etl-tools.info/en/bi/datawarehouse_concepts.htm
http://www.waterstons.com/Service/Consulting/Business+Intelligence/?tab=2 

6. What are two possible outcomes a company could get from using data mining?

Through the use of data mining, patterns and relationships can be created. Such tools/techniques which can assist in data mining include Cluster analysis, association detection and statistical analysis. When patterns and relationships are created, businesses can alter existing or create a new marketing mix in an attempt to persuade new and existing consumers to purchase their products and services, giving the business an opportunity to increase profits.  As such this can be seen as a possible outcome of data mining. Another outcome of data mining is the opportunity of businesses to enter a niche market through the specialisation of goods and services when patterns are created.

For further information, visit:
Textbook: Baltzan, Philips, Lynch & Blakey, Business Driven Information Systems (Australian/New Zealand edition)   
http://www.crisp-dm.org/Process/index.htm
http://www.webpagefx.com/Lead-Management-System.html