Customer Relationship Management

Customer Relationship Management - Organizations use customer relationship management systems to assist in the management of the critical relationships they have developed with their customers - These systems assist organizations to synchronize business opening units relating to customer interaction - Customer interaction includes the marketing sales and service areas of the organization - How businesses use CRM systems Customer acquisition consists of the processes and strategies an organization uses to obtain new customers - Customers can be accrued using several approaches including social media, search affiliate, referral, and email marketing - Organizations often track customer acquisition using a lead generation or acquisition funnel - A lead generation funnel starts with gaining customer interest Marketing activates driven by CRM can help to stimulate interest - Next the organization attempts to gain interest about a product or service. After interest comes desire - CRM software and the analytics it provides are used to create the need, want, or desire to purchase a product or service - the last phase of the funnel is action, which is also known as purchase in this phase of the customer pays for the products or service - CRM software is used to track purchases and record purchase information CRM software systems track prospective and current customers through the various stages of the funnel - - Software assists organizations in identifying marketing qualified leads MGLS and sales qualified leads (SQLs) - A MQL is a lead who has an identified interest in a brand or product/service offering - MQLs have intentionally engaged with a product or service by performing actions such as downloading content from a site related visits to a website and adding materials to an online shopping cart - A SQL is a lead that has been qualified and is ready to make a purchase. MQLs are curios while SQLs are ready to act - CRM software supports businesses in identifying which leads are MQL and which are SQL so that organizations can properly engage both groups Market segmentation - The processor dividing a market go both potential and existing customers into groups, based on a variety of characteristics including both demographic and psychographic types of data - Segmented groups share common traits, interest, needs, wants and geographic location CRM systems assist businesses in segmenting a market - CRM marketers use information collected in databases to create promotions that are best targeted customers’ needs and wants - Promotions created by CRM include customers loyalty programs and product/services customization Target Market Group of existing and potential customers that an organization believe they can sell their products or services to - Organizations target market shares common characteristics including geographic location, demographic and psychographics backgrounds and income level - Organizations must precisely identify their target markets, so they best utilize resources when marketing to potential and existing customers - CRM software is often to identify organizations target market and to provide critical insights into the profiles of these customer - CRM systems provides a variety of analytical tools, including those used to identify and understand the target market These tools can bet used to recognize the precise market for a specific product or service and how best to reach that market A variety of both online and traditional media strategies are used These systems collect data from customer transactions which can then be analyzed using analytical tools provided in the platform to identify trends as well as demographics and geographic information Analysis of customer characters is also an important part of the process - - What is customer acquisition? ⁃ Customer acquisition consists of the processes and strategies an organization uses to obtain new customers What are four factors to be considered when selecting a customer segmentation tool? 1. Integration 2. Data collection, Analytical tools 3. Flexibility, Scalability 4. Cost What’s the difference between a MQL or SQL - MQL- marketing qualified leads; are curious - SQL- sales qualified leads; are ready to act What is market segmentation? - Market segmentation is the process of dividing a market of both potential and existing customers into groups based on a variety of characteristics