Marketing and Business Intelligence Support
A customer relationship management module is designed to support both marketing needs and business intelligent needs of Franklin Cooking Company. Today’s consumer has more purchasing power than ever before, and their demands regarding customer service have increased. Customers expect a comprehensive, integrated customer relationship management module that makes them feel as if they are the only customer working with Franklin Cooking Company.
As customers continue to purchase cookies, data is immediately recorded about all of the items the customer decides to purchase. This data will quickly begin to associate the cookies that are purchased to the consumers who desire them. This means various pieces of data regarding cookie flavor preference will be attached to the consumer each time they want to purchase something from Franklin Cookie Company.
It is obvious the target market for selling cookies will be with the individuals themselves. This is what places so much value on the customer relationship module for the business. Since this is a smaller size company, marketing to large consumer groups will not be the objective of the customer relationship management module. Instead the individuals are the important people to market to, and the customer relationship module will handle all of these actions.
After enough data about the individuals has been documented, the data can be used to segment different variables that influence marketing to their respected individuals. Some of these variables can include things like a customer’s lifetime value to the company, regional demographics, sales medium preference, and average number of products purchased every transaction. All of this information can be used to treat the customer as if they are the only individual purchasing from the company.
By segmenting all of these variables, business intelligence needs are met. Franklin Cookie Company can specialize some of their communication to ensure their marketing is getting across to their consumer. This is a demonstration of customer relationship management providing an organization with the business intelligence it needs to be a flexible, competitive company.
Fulfilling these business intelligence needs is an important step to increasing work productivity. Not only does it provide cost savings, but it also increases the rate at which employees can respond to customer needs. The more Franklin Cookie Company understands about their customer, the more specific their marketing message can be. This kind of relationship with the customer avoids the cost of mass marketing to large groups of people.
Once the customer relationship module has been put in to place and runs seamlessly, different type of cookies can be created to accommodate individual’s needs. This feature is only capable after enough data has been recorded about the individual. This is part of a process that involves up-selling. Without the use of these business intelligence modules, it would be very difficult to up-sell to the correct individual.
Finally, a customer relationship management module will provide Franklin Cookie Company with data showing which individuals have quit purchasing cookies. It is not difficult to determine who has stopped making transactions at a store and who has not. The difficult part about this, and the most significant reason for success in a business, understands why that individual left. Customer relationship management at least provides information that shows why a customer left, and what the company can do as a whole to ensure that it never happens to any other individual customer.
CRM System Standard Approach
To implement a CRM (Customer Relationship Management) system into an e-commerce and a brick and mortar organization, there are several steps that must be taken. CRM’s basic goal whether it is a traditional or an e-commerce type of structure, is customer satisfaction. To effectively make the CRM system work, all processes must work together to create a seamless company system. Let’s take a look into the processes that make up the CRM.
An important step in this process is to store the information that your system has collected. In order to do this, a centralized database would be the best solution for the company. This allows all information to come from one source for the entire company. Not only does this make it more simplified to backup data, it also ensures that employees are receiving the most up to date information in the system. Since this is a centralized system, information can be directly stored without any delay in updating. It is equally important that the information can be accessed and readable by all employees. Furthermore, it is also important that information certain departments or employees don’t need is not included in the screen that they receive. Receiving information that is not needed can slow down productivity shifting through all of the information and will annoy workers more than help them complete their job. With one system in place, access lists can be put into place to restrict access and protect personal information.
Another step needed in the process is the collection of personal data so that you can classify and organize your customers into categories such as age, race, gender, location, and spending habits. If a website is available for your company, customers can update their own information saving the company time and money. This can be completed when the customer first logs into the site. This is a very valuable tool used by the marketing department so they know which products are in demand at which times if the year, why, and who buys it. This collecting of data actually goes into the data mining process as well. The patterns and relationships of the customers can be relayed into spreadsheets. This process can also be classified as profiling. With this information, the sales and marketing department have a strong advantage as to what the customers are in demand for and when they want it. This can also enhance a customer’s shopping experience by offering coupons or discounts during the period where the product is mostly needed.
Customer information can also be stored by each purchase by assigning control or ID numbers to customers. Some companies can offer incentives to register their product online and answer a short survey. For instance, Max and Erma’s have comment cards on all tables. They also ask you to fill out comments online about the experience you had at the location where you were dining. When these comment cards are filled out online or through traditional mailing techniques, Max and Erma’s offer a coupon that entitles you to six free cookies. This is a nice way to entice customer survey responses. This valuable tool can also help service managers to determine where problems are in the company and what they can do to improve and make it a better experience for the customer the next time around.
A CRM system can also help decide if a royalty program would be a good alternative for the company. Based on the information that is collected, the system can decide who is eligible for more incentives. For instance, Macy’s offers a store credit account. When an individual spends over $1000.00 a year, they can be bumped up to a better card that has even better incentives such as free gift wrapping, or free shipping. Not only will this entice the customer to spend more online and at brick and mortar businesses, it also can save the customer some money in the long run. These incentive programs also helps assign numbers to customers so they can be tracked with their spending habits. This will help the company determine spending history so coupons and incentives can be used when the customer spends the most amount of money, say around a holiday or around a birthday date.
Measuring the Quantitative Value of a CRM
The Franklin Cooking Company will measure the quantitative value of the customer relationship management (CRM) program chosen. The primary reasons for implementing the CRM include:
Most organization loose at least 20% of their customer each year due to various reasons e.g. competition, a perception of better customer service and better products (Tech Republic, 2008).
It is easier and cheaper to retain existing customers (Wagner & Zubey, 2007)
CRM’s help in maximizing customer profitability (Goldenberg, 2002).
The Franklin Cookie Company is dedicated to the idea that our CRM is vital to business. “In order to manage effectively, one must measure” (Kaplan & Norton, 2001).Therefore, The Franklin Cookie Company will measure the quantitative value of our CRM:
· To influence or validate decision making
· To guide ongoing activities or tactics
· To predict future sales.
The Franklin Cookie Company will utilize its web site as the main measurement tool. Some of the measurements taken will be:
· Visitor count-How many people visited the site?
· Unique visitor count-How many unique people have visited the site?
· Duration-Total time a visitor spent on the page or site.
· Frequency-Number of repeat customers.
· Revenue generation-Total dollars spent.
o Average revenue per customer
o Revenue per visitor
These measurements will allow the Franklin Cookie Company to evaluate the Return on Investment for the CRM system, the value of each customer and also make assumptions about products, marketing programs and measure customer loyalty (Kellen, 2002).
These measurements will allow our company to clearly and visually communicate with upper management and help identify the company’s success or short comings (Tech Republic, 2008).
References
Awad, E. (2007). Electronic commerce: From vision to fulfillment. (3rd ed.). Upper
Saddle River, New Jersey: Pearson Prentice Hall.
Dyche, Jill (2001). Crm handbook, a business guide to customer relationship
management. Addison-Wesley Professional. ISBN: 978-0-201-73062-3
Goldenberg, B. J.(2002). Barton J. Goldenberg. Upper Saddle River, NJ, USA: Prentice Hall.
Kellen, Vince (2002). CRM Measurement Frameworks. Retrieved November 24th, 2008,
from website: http://www.kellen.net/crmmeas.htm
Monk, E., & Wagner, B. (2006). Concepts in enterprise resource planning. (2nd ed.).
Boston: Thomson Course Technology.
Tech Republic. (2008). Selecting Strategic CRM Measures. Retrieved November 23, 2008,
from Tech Republic: http://whitepapers.techrepublic.com
Zubey, M., & Wagner, W. (2007). Customer relationship management: A people,
process, and technology approach. (1st ed.). Boston: Thomson Course Technology.
A customer relationship management module is designed to support both marketing needs and business intelligent needs of Franklin Cooking Company. Today’s consumer has more purchasing power than ever before, and their demands regarding customer service have increased. Customers expect a comprehensive, integrated customer relationship management module that makes them feel as if they are the only customer working with Franklin Cooking Company.
As customers continue to purchase cookies, data is immediately recorded about all of the items the customer decides to purchase. This data will quickly begin to associate the cookies that are purchased to the consumers who desire them. This means various pieces of data regarding cookie flavor preference will be attached to the consumer each time they want to purchase something from Franklin Cookie Company.
It is obvious the target market for selling cookies will be with the individuals themselves. This is what places so much value on the customer relationship module for the business. Since this is a smaller size company, marketing to large consumer groups will not be the objective of the customer relationship management module. Instead the individuals are the important people to market to, and the customer relationship module will handle all of these actions.
After enough data about the individuals has been documented, the data can be used to segment different variables that influence marketing to their respected individuals. Some of these variables can include things like a customer’s lifetime value to the company, regional demographics, sales medium preference, and average number of products purchased every transaction. All of this information can be used to treat the customer as if they are the only individual purchasing from the company.
By segmenting all of these variables, business intelligence needs are met. Franklin Cookie Company can specialize some of their communication to ensure their marketing is getting across to their consumer. This is a demonstration of customer relationship management providing an organization with the business intelligence it needs to be a flexible, competitive company.
Fulfilling these business intelligence needs is an important step to increasing work productivity. Not only does it provide cost savings, but it also increases the rate at which employees can respond to customer needs. The more Franklin Cookie Company understands about their customer, the more specific their marketing message can be. This kind of relationship with the customer avoids the cost of mass marketing to large groups of people.
Once the customer relationship module has been put in to place and runs seamlessly, different type of cookies can be created to accommodate individual’s needs. This feature is only capable after enough data has been recorded about the individual. This is part of a process that involves up-selling. Without the use of these business intelligence modules, it would be very difficult to up-sell to the correct individual.
Finally, a customer relationship management module will provide Franklin Cookie Company with data showing which individuals have quit purchasing cookies. It is not difficult to determine who has stopped making transactions at a store and who has not. The difficult part about this, and the most significant reason for success in a business, understands why that individual left. Customer relationship management at least provides information that shows why a customer left, and what the company can do as a whole to ensure that it never happens to any other individual customer.
CRM System Standard Approach
To implement a CRM (Customer Relationship Management) system into an e-commerce and a brick and mortar organization, there are several steps that must be taken. CRM’s basic goal whether it is a traditional or an e-commerce type of structure, is customer satisfaction. To effectively make the CRM system work, all processes must work together to create a seamless company system. Let’s take a look into the processes that make up the CRM.
An important step in this process is to store the information that your system has collected. In order to do this, a centralized database would be the best solution for the company. This allows all information to come from one source for the entire company. Not only does this make it more simplified to backup data, it also ensures that employees are receiving the most up to date information in the system. Since this is a centralized system, information can be directly stored without any delay in updating. It is equally important that the information can be accessed and readable by all employees. Furthermore, it is also important that information certain departments or employees don’t need is not included in the screen that they receive. Receiving information that is not needed can slow down productivity shifting through all of the information and will annoy workers more than help them complete their job. With one system in place, access lists can be put into place to restrict access and protect personal information.
Another step needed in the process is the collection of personal data so that you can classify and organize your customers into categories such as age, race, gender, location, and spending habits. If a website is available for your company, customers can update their own information saving the company time and money. This can be completed when the customer first logs into the site. This is a very valuable tool used by the marketing department so they know which products are in demand at which times if the year, why, and who buys it. This collecting of data actually goes into the data mining process as well. The patterns and relationships of the customers can be relayed into spreadsheets. This process can also be classified as profiling. With this information, the sales and marketing department have a strong advantage as to what the customers are in demand for and when they want it. This can also enhance a customer’s shopping experience by offering coupons or discounts during the period where the product is mostly needed.
Customer information can also be stored by each purchase by assigning control or ID numbers to customers. Some companies can offer incentives to register their product online and answer a short survey. For instance, Max and Erma’s have comment cards on all tables. They also ask you to fill out comments online about the experience you had at the location where you were dining. When these comment cards are filled out online or through traditional mailing techniques, Max and Erma’s offer a coupon that entitles you to six free cookies. This is a nice way to entice customer survey responses. This valuable tool can also help service managers to determine where problems are in the company and what they can do to improve and make it a better experience for the customer the next time around.
A CRM system can also help decide if a royalty program would be a good alternative for the company. Based on the information that is collected, the system can decide who is eligible for more incentives. For instance, Macy’s offers a store credit account. When an individual spends over $1000.00 a year, they can be bumped up to a better card that has even better incentives such as free gift wrapping, or free shipping. Not only will this entice the customer to spend more online and at brick and mortar businesses, it also can save the customer some money in the long run. These incentive programs also helps assign numbers to customers so they can be tracked with their spending habits. This will help the company determine spending history so coupons and incentives can be used when the customer spends the most amount of money, say around a holiday or around a birthday date.
Measuring the Quantitative Value of a CRM
The Franklin Cooking Company will measure the quantitative value of the customer relationship management (CRM) program chosen. The primary reasons for implementing the CRM include:
Most organization loose at least 20% of their customer each year due to various reasons e.g. competition, a perception of better customer service and better products (Tech Republic, 2008).
It is easier and cheaper to retain existing customers (Wagner & Zubey, 2007)
CRM’s help in maximizing customer profitability (Goldenberg, 2002).
The Franklin Cookie Company is dedicated to the idea that our CRM is vital to business. “In order to manage effectively, one must measure” (Kaplan & Norton, 2001).Therefore, The Franklin Cookie Company will measure the quantitative value of our CRM:
· To influence or validate decision making
· To guide ongoing activities or tactics
· To predict future sales.
The Franklin Cookie Company will utilize its web site as the main measurement tool. Some of the measurements taken will be:
· Visitor count-How many people visited the site?
· Unique visitor count-How many unique people have visited the site?
· Duration-Total time a visitor spent on the page or site.
· Frequency-Number of repeat customers.
· Revenue generation-Total dollars spent.
o Average revenue per customer
o Revenue per visitor
These measurements will allow the Franklin Cookie Company to evaluate the Return on Investment for the CRM system, the value of each customer and also make assumptions about products, marketing programs and measure customer loyalty (Kellen, 2002).
These measurements will allow our company to clearly and visually communicate with upper management and help identify the company’s success or short comings (Tech Republic, 2008).
References
Awad, E. (2007). Electronic commerce: From vision to fulfillment. (3rd ed.). Upper
Saddle River, New Jersey: Pearson Prentice Hall.
Dyche, Jill (2001). Crm handbook, a business guide to customer relationship
management. Addison-Wesley Professional. ISBN: 978-0-201-73062-3
Goldenberg, B. J.(2002). Barton J. Goldenberg. Upper Saddle River, NJ, USA: Prentice Hall.
Kellen, Vince (2002). CRM Measurement Frameworks. Retrieved November 24th, 2008,
from website: http://www.kellen.net/crmmeas.htm
Monk, E., & Wagner, B. (2006). Concepts in enterprise resource planning. (2nd ed.).
Boston: Thomson Course Technology.
Tech Republic. (2008). Selecting Strategic CRM Measures. Retrieved November 23, 2008,
from Tech Republic: http://whitepapers.techrepublic.com
Zubey, M., & Wagner, W. (2007). Customer relationship management: A people,
process, and technology approach. (1st ed.). Boston: Thomson Course Technology.
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