Learn: IDSc Test 3 (Kevin Kuhn)

Supplier

Provides raw materials or parts to a manufacturer

Order

A buyer's intention to receive good or services from a seller

Purchase

The transactional process of acquiring goods or services

Raw Materials

The basic components required to produce a product

Inventory

The quantity of materials that a business holds for utilization or sale

Customer

Recipient of a good or service via a financial transaction in exchange for payment

Invoice

Formal document issued by a seller describing products (or services), pricing, and payment terms

Finished Goods

A product that is ready for sale without any additional process

Payment

The process of compensating for a product or service

Transaction

A business exchange that has a financial impact

DPO Formula

(Average Accounts Payable ÷ Cost of Goods Sold) x 365

What Does DPO Show?

The average number of days a company takes to pay suppliers

How does DPO help companies?

Helps companies find the right balance between conserving cash and maintaining strong supplier relationships

Receivables Turnover Ratio Formula

Net Credit Sales ÷ Average Accounts Receivable

What does the Receivables Turnover Ratio show?

Shows how often a business collects its outstanding receivables within a given period

What does a high Receivables Turnover Ratio indicate?

More efficient collection processes and better credit risk management

Employee Engagement

The emotional attachment employees feel towards their organization. Often used as a key metric for measuring the effectiveness of an organization's Human Resources capability

Employee Competencies

The measurable combination of knowledge, skills, abilities, and behavioral traits that enable an employee to perform job duties successfully

Firms with an in-depth view of employee competencies across the organization can easily and rapidly locate:

- Best-fit candidates

- Identify and resolve skill shortages

- Reallocate resources in response to changing conditions

Customer Acquisition Cost

The amount of money a firm spends to convince a customer to buy a product or service

What is the goal when it comes to CAC?

Should cost less to bring in a customer than the value that the customer will eventually return to the business

What helps decrease CAC?

- Word-of-mouth

- Social media

1st Party Data

Collected by firms with customer direct relationships

2nd Party Data

Another organization's first-party data

3rd Party Data

Gathered by thousands of specialist firms across the web

Minimum Viable Product (MVP)

A bare-bones offering that allows the organization to collect customer feedback and to validate concepts and assumptions that underlie the business idea

Social CRM

Leveraging social media for management of brand, marketing, sales, and customer support

Functions of CRM

- Brand Awareness

- Product Announcements

- Sentiment Analysis

- Lead Generation

- Customer Support

- Social Media Analytics

- Customer Engagement

- Customer Response

- Customer Analytics

Loyalty Programs

Provides rewards and usage incentives, typically in exchange for a method that provides a more detailed tracking and recording of customer activity

What is a strong example of a Loyalty Program?

Starbucks Reward Program

True or False: Loyalty Programs can represent a significant switching cost

True

Customer Data Sources:

- In-Store Sales

- Online Sales

- Web Browsing

- Surveys

- Customer Service

- Sales Department

- Advertising Platforms

- Web Analytics

- Marketing Automation Platforms

- Loyalty Programs

- Mobile Apps

- Legacy Systems

- Wearables

- Internet of Things

What Does McKinsey Recommend?

Companies should create a complete picture of their customer across a comprehensive set of characteristics

CRM Key Business Values:

- Improved customer satisfaction

- Allows for individualization of marketing activities

- Lower costs for customer acquisition and retention

- Increased revenue from identifying most profitable customers and segments for marketing, cross-selling, up-selling

- Provides a single view of customers

360 Degree View:

Human Resource Management Systems (HRMS)

Software that assists in managing the workforce of an organization and supports the Human Resource (HR) Department with their everyday duties

HRMS Functions:

- Talent management

- Employee services

- Benefits administration

- Absence management

- Talent retention

- Workforce management

- Workforce analytics

HRMS Key Trends:

- Technology is changing the nature of work itself

- Technology will eliminate entire categories of occupations

- The developing relationship between workers and robots

- Organizations have global workforces

- Companies today are struggling to create an innovative culture

How can CRM increase revenue?

- Providing services and products that are exactly what your customers want

- Offering better customer service

- Cross-selling products more effectively

- Helping sales staff close deals faster

- Retaining existing customers and discovering new ones

What are the steps in the Boggi Milano Case?

1. Break down organizational silos

2. Build a digital foundation

3. Digitize the store

4. Unify service across channels

5. Unify marketing functions

Result of the Boggi Milano Case?

100% year-over-year growth in online sales

How did Amazon win?

Amazon won by investing in an in-house CRM system, involving almost zero human interaction, that can grow with their business.

Why is Amazon so successful?

With almost 85% of the world's products available, they streamlined the buying process with recommendations, one-click ordering, and Prime delivery to make it as quick and simple as possible to use

Summarize the AON case

Aon uses retirement analytics to compare employees' pension savings to their retirement needs and predict when employees may retire. This helps Aon identify potential losses of critical talent, plan for future workforce needs, and make better HR decisions using combined employee data.