CRM in Supply Chain Management Flashcards

CRM in Supply Chain Context

• CRM integrates processes and networks to deliver value to customers.
• Aligns with SCM by ensuring customer-centric processes (the 7 R’s).
• Optimizes supply chain via customer data analysis.

Customer Lifecycle (He, 2016)

• Reach: Customer discovers the product.
• Acquire: Customer engages with marketing; learns about features.
• Converse: Customer orders, becoming a paying customer.
• Retain: Post-delivery, maintain customer satisfaction.
• Loyalty: Customer becomes a loyal advocate.

Advantages of CRM

• Improved Customer Service: Personalized service via stored data.
• Increased Sales: Automation streamlines lead conversion.
• Customer Retention: Automated ticketing and sentiment analysis.
• Improved Analytics: Data-driven insights for strategic decisions.
• Higher Efficiency: Task centralization and automation.
• Transparency: Tracks employee performance.

Disadvantages of CRM

• High Set-Up Costs: Significant investment required.
• Lack of Training: Poor software utilization.
• Data Security and Accuracy: Risks of breaches and errors (POPI Act compliance).
• Eliminates Human Element: Over-automation reduces personalization.
• Employee Resistance: Resistance to adopting CRM.
• System Errors: Maintenance needed to prevent failures.

Types of CRM

• Operational CRM: Automates sales and marketing.
  • Features: Sales team automation, contract management, lead scoring.
• Collaborative CRM: Enhances interdepartmental information sharing.
  • Features: Interaction, relationship, and document management.
• Analytical CRM: Gathers and analyzes data for strategic decisions.
  • Features: Data warehousing, buyer persona building, sales forecasting, data mining.

CRM Models in Supply Chain Management

• IDIC Model: Focuses on Identifying, Differentiating, Interacting, and Customizing.
  • SCM Relevance: Tailors supply chain to customer needs.
• Quality Competitive Index (QCI) Model: Emphasizes acquisition, retention, and penetration.
  • SCM Relevance: Aligns supply chain activities with customer management.
• Payne’s Five Forces Model: Integrates business and customer strategies.
  • SCM Relevance: Aligns supply chain with CRM goals using data.
• CRM Value Chain Model: Creates customer value through specific activities.
  • SCM Relevance: Optimizes supply chain to deliver value to profitable customers.

CRM Software

• Salesforce: Account, quotation management, sales agent tracking.
• Sugar CRM: Harmonizes marketing, sales, and support.
• Agile CRM: Customer segmentation and matching to sales reps.
• Pipedrive: Visual sales pipelines.
• Nimble: Aggregates social media feedback (small businesses).
• Hubspot CRM: Full-stack business management.
• Capsule CRM: Sales pipeline management and data export.
• Zendesk Sunshine: Holistic SCM-CRM integration.

CRM Implementation Process (Buttle & Maklan, 2015)

• Developing a CRM Strategy: CRM vision, goals, objectives, education plan.
  • Analysis: Aligns with organizational objectives.
• CRM Project Foundation: Defines roles, responsibilities, change management.
  • Analysis: Establishes governance.
• Needs Specification and Partner Selection: Data review, gap analysis, technology needs.
  • Analysis: Aligns technology with SCM needs.
• Project Implementation: Designs, tests, and rolls out CRM system.
  • Analysis: Tests integration with systems like ERP.
• System Appraisal: Assesses whether CRM goals are met.
  • Analysis: Evaluates SCM performance and ROI.