CRM in Supply Chain Management Flashcards

Flashcards on Customer Relationship Management (CRM) within a Supply Chain Context

Customer Relationship Management (CRM)

A core business strategy that integrates internal processes, functions, and external networks to create and deliver value to targeted customers profitably, using high-quality customer data and information technology.

Strategic Supply Chain Management (SCM)

Ensures customer-centric processes, such as delivering the right product to the right customer at the right place, time, quantity, condition, and cost (the 7 R’s).

Customer Lifecycle Stages

Reach, Acquire, Converse, Retain, and Loyalty.

Improved Customer Service (Advantage of CRM)

CRM stores customer data (e.g., purchase history, preferences) across channels, enabling personalized service and faster issue resolution.

Increased Sales (Advantage of CRM)

Automates sales processes, builds pipelines, and tracks interactions, streamlining lead conversion.

Customer Retention (Advantage of CRM)

Enhances retention through automated ticketing and sentiment analysis, reducing acquisition costs.

Improved Analytics (Advantage of CRM)

Provides data-driven insights via data mining and warehousing, aiding strategic decisions.

Higher Efficiency (Advantage of CRM)

Centralizes tasks, automates repetitive work, and improves team collaboration.

Transparency (Advantage of CRM)

Tracks employee performance and customer interactions, fostering accountability.

High Set-Up Costs (Disadvantage of CRM)

CRM implementation requires significant investment, which may be prohibitive for small organizations.

Lack of Training (Disadvantage of CRM)

Inadequate training leads to poor software utilization, reducing effectiveness.

Data Security and Accuracy (Disadvantage of CRM)

Risks include data breaches and inaccurate data entry, requiring compliance with laws like the POPI Act.

Eliminates Human Element (Disadvantage of CRM)

Over-automation may make customers feel like “just a number,” potentially reducing sales.

Employee Resistance (Disadvantage of CRM)

Long-term employees may resist adopting CRM, hindering strategic goals.

System Errors (Disadvantage of CRM)

CRM systems require maintenance to prevent failures that could disrupt data integrity.

Operational CRM

Automates sales and marketing processes.

Collaborative CRM (Strategic CRM)

Enhances interdepartmental information sharing to improve customer service and retention.

Analytical CRM

Gathers, organizes, and analyzes data for strategic and operational decision-making.

IDIC Model

Focuses on Identifying customers, Differentiating them by value, Interacting to build relationships, and Customizing offerings to meet expectations.

Quality Competitive Index (QCI) Model

Emphasizes customer management through acquisition (targeting, conversion), retention (value development, managing dissatisfaction), and penetration, with technology as a support tool.

Payne’s Five Forces Model

Integrates business and customer strategies through five processes: strategy development, value creation, multichannel integration, information management, and performance assessment.

CRM Value Chain Model

Focuses on creating customer value through five primary activities: customer portfolio analysis, customer intimacy, network development, value proposition development, and relationship management.

Salesforce (CRM Software)

Focuses on selling, offering account management, quotation management, and sales agent performance tracking. Ideal for sales-driven SCM organizations.

Sugar CRM (CRM Software)

Harmonizes marketing, sales, and support teams for lead and customer management, supporting integrated SCM processes.

Agile CRM (CRM Software)

Segments customers and matches them to specialized sales reps, enhancing supply chain personalization.

Pipedrive (CRM Software)

Creates multiple sales pipelines with clear visual overviews, aiding SCM prioritization of orders.

Nimble (CRM Software)

User-friendly for small businesses, aggregates social media feedback, useful for SCM customer engagement.

Hubspot CRM (CRM Software)

Comprehensive platform for full-stack business management, supporting SCM integration.

Capsule CRM (CRM Software)

Manages sales pipelines and daily activities, with easy data export (e.g., to Excel), aiding SCM analytics.

Zendesk Sunshine (CRM Software)

Breaks down team barriers, fostering holistic SCM-CRM integration.

Developing a CRM Strategy (CRM Implementation Process)

Involves creating a CRM vision, goals, objectives, education plan, and situational analysis. Ensures alignment with organizational objectives, addressing socioeconomic and technological factors.

CRM Project Foundation (CRM Implementation Process)

Defines roles, responsibilities, change management needs, and critical success factors (e.g., senior management commitment, customer information management). Establishes governance to support SCM integration, ensuring employee buy-in for effective CRM adoption.

Needs Specification and Partner Selection (CRM Implementation Process)

Involves data review, gap analysis, technology needs specification, drafting proposals, and selecting a CRM partner. Aligns technology with SCM needs (e.g., logistics data integration), ensuring the chosen system supports supply chain efficiency.

Project Implementation (CRM Implementation Process)

Designs, tests, and rolls out the CRM system in a controlled environment to identify errors. Critical for SCM to test integration with systems like ERP, ensuring seamless data flow for inventory and delivery processes.

System Appraisal (CRM Implementation Process)

Assesses whether CRM goals are met using business and project outcomes. Evaluates SCM performance (e.g., delivery timeliness, customer satisfaction) to ensure ROI and continuous improvement.