Section 5 Planning Guide Sheets Page 5-1 Knowledge/ Skill Statement Understands the techniques and strategies used to foster positive, ongoing relationships with customers Instructional Area Customer Relations Performance Element Reinforce company’s image to exhibit the company’s brand promise Performance Indicator Identify company’s brand promise (CR:001) Level Career-sustaining SCANS Information 5-7; Systems 15; Basic Skills 1-2, 5-6; Thinking Skills 7, 10, 12 21st Century Skills Critical Thinking and Problem Solving 1 Objectives a. b. c. d. Sample Activity Divide the class into groups of three to five students. Ask each group to select a local business and identify its brand promise. Each group should record the brand promise, write a rationale for its findings, and share its findings and rationale with the class. Students should remain in these groups when studying ways of reinforcing company image through employee performance. Define the terms touch points, brand, and brand promise. Explain the importance of a company’s brand promise. Describe factors impacting a company’s brand promise. Demonstrate how to identify a company’s brand promise. Resources Textbooks Chiaravalle, B. & Schenck, B.F. (2007). Branding for dummies (pp. 96-98). Indianapolis: Wiley Publishing, Inc. Grewal, D. & Levy, M. (2008). Marketing (pp. 271-272, 274-285). New York: McGraw-Hill/Irwin. Kotler, P. & Keller, K.L. (2006). Marketing management (12th ed.) [pp. 274-278]. Upper Saddle River, NJ: Prentice-Hall. O’Guinn, T.C., Allen, C.T., & Semenik, R.J. (2009). Advertising & integrated brand promotion (5th ed.) [pp. 21-24, 212-213]. Mason, OH: South-Western Cengage Learning. Perreault, W. D., Cannon, J. P., & McCarthy, E. J. (2008). Basic marketing: A marketing strategy planning approach (16th ed.) [p. 249]. Boston: McGrawHill/Irwin. Software/ Online Asacker, T., VanAuken, B. & Daye, D. (2008, February 6). The language of branding: “Brand promise”. Retrieved May 10, 2011, from http://www.brandingstrategyinsider.com/2008/02/the-language-of.html George, R. (2000-2011). Tapping into brand touchpoints. Retrieved May 10, 2011, from http://www.marketingprofs.com/3/george2.asp Krueger, J.R. (2007, March 1). Brand promise: Providing the “second wow”. Retrieved May 10, 2011, from http://www.jckonline.com/article/CA6429130.html Smith, G. (2000-2010). A brand is the sum of all touchpoints. Retrieved May 10, 2011, from http://www.marketingprofs.com/4/smith1.asp 1 Section 5 Planning Guide Sheets Page 5-2 Turner, M.R., Wiseman, G., & Goldsmith A. (2007). Delivering on your brand promise—one location at a time. Retrieved May 24, 2011, from http://www.maritz.com/~/media/Files/MaritzDotCom/White%20Papers/ Research/Delivering-on-Your-Brand-Promise.ashx 2 Section 5 Planning Guide Sheets Page 5-3 Knowledge/ Skill Statement Understands the tools, techniques, and systems that businesses use to create exchanges and satisfy organizational objectives Instructional Area Marketing Performance Element Acquire foundational knowledge of customer/client/business behavior to understand what motivates decision-making. Performance Indicator Discuss actions employees can take to achieve the company’s desired results (MK:015, MK LAP 2) Level Career-sustaining SCANS Information 5; Systems 15; Basic Skills 1-2;Thinking Skills 12 21st Century Skills Communication & Collaboration 1, 3, 4; Leadership & Responsibility 2, 4 Objectives a. b. c. d. e. Sample Activity Ask each group of four students to develop two short case studies. One case study should present a situation in which employee actions negatively impact a business, and the other should explain a situation in which employee actions positively impact a business. Each group to explain its case studies in a presentation to the class. Explain the importance of employees to company operations. Describe types of results that businesses try to achieve. Discuss how employee actions can negatively impact businesses. Explain how employee actions can positively impact businesses. Describe positive actions employees can take to help a business achieve its goals. Resources LAP Marketing Education Resource Center (2008). Act now [LAP: MK-002]. Columbus, OH: Author. Marketing Education Resource Center (2008). Act now: Instructor copy [LAP: MK002]. Columbus, OH: Author. Textbooks Clark, B., Sobel, J. & Basteria, C.G. (2010). Marketing dynamics: Teacher’s edition (2nd ed.) [pp. 624-625]. Tinley Park, IL:Goodheart-Willcox. Bailey, L.J. (2007). Working (4th ed) [pp. 94-97]. Mason, OH: South-Western Cengage Learning. Ludden, L.V. (2003). Job savvy: How to be a success at work (3rd ed.) [pp. 14-15, 118, 159, 163, 189]. Indianapolis: JIST Publishing. Kimbrell, G., & Vineyard, B.S. (2006). Succeeding in the world of work (pp. 174-179, 182-185). New York: Glencoe/McGraw-Hill. Pride, W. M., Hughes, R. J., & Kapoor, J. R. (2008). Business (9th ed.) [p. 234]. Boston: Houghton Mifflin. Wallace, H.R., & Masters, L.A. (2006). Personal development for life & work (9th ed.) [p. 300]. Mason, OH: South-Western Cengage Learning. Williams, J.W., & Eggland, S.A. (2005). Human relations for career success (6th ed.) [pp. 9, 84-86, 89-91, 95-98]. Mason, OH: South-Western Cengage Learning. 3 Section 5 Software/ Online Planning Guide Sheets Page 5-4 DiGirolamo, R. (2011). How to be a good employee. Retrieved May 16, 2011, from http://ezinearticles.com/?How-to-Be-a-Good-Employee&id=1241091 Estes, A. (2011). Top 7 tips to improve: Profitability and employee productivity statistics. Retrieved May 27, 2010, from http://top7business.com/?id=10900 Marketing Education Resource Center (2008). Act Now [LAP: MK-002—Presentation Software]. Columbus, OH: Author. Mercer LLC. (2007). Engaging employees to drive global business success: Insights from Mercer’s What’s Working™ research. Retrieved May 16, 2011, from http://www.mmc.com/knowledgecenter/Engaging_Employees_To_Drive _Business.pdf Regier, S. (n.d.). 12 tips to increase productivity with better time management. Retrieved May 16, 2011, http://www.evancarmichael.com/Marketing/94/12-Tips-To-IncreaseProductivity-With-Better-Time-Management.html Rhoads, G. (2009, January 20). Employee engagement: An essential ingredient for business success. Retrieved May 16, 2011, from http://blog.allegiance.com/2009/01/employee-engagement-an-essentialingredient-for-business-success/ Sullivan, R. (n.d.). Cut costs to increase profits. Retrieved May 16, 2011, from http://www.isquare.com/cutcosts.cfm 4 Section 5 Planning Guide Sheets Page 5-5 Knowledge/ Skill Statement Understands the techniques and strategies used to foster positive, ongoing relationships with customers Instructional Area Customer Relations Performance Element Reinforce company’s image to exhibit the company’s brand promise. Performance Indicator Determine ways of reinforcing the company’s image through employee performance (CR:002) Level Career-sustaining SCANS Information 5, 7; Systems 15; Basic Skills 2, 5-6; Thinking Skills 8-9, 12, 13, 15, 17 21st Century Skills Critical Thinking and Problem Solving 1, 3 Objectives a. b. c. d. e. Sample Activity Discuss types of company images. Describe factors that affect a company’s image. Explain the importance of reinforcing the company’s image. Describe ways that employees can reinforce the company’s image through their performance. Demonstrate how to determine ways to reinforce the company’s image through employee performance. Students should remain in the groups they formed when identifying a company’s brand promise. Each group should use the local business and its brand promise previously identified to determine ways that the company’s employees reinforce the business’s image through their performance. The group should record its findings and suggest additional ways for employees to reinforce the company’s image. Resources Textbooks Clow, K.E, & Baack, D. (2010). Integrated advertising, promotion, and marketing communications (4th ed.) [pp. 360-367]. Upper Saddle River, NJ: Prentice Hall. Evenson, R. (2007). Award-winning customer service (pp. 14-15, 70-71, 114-115). New York: AMACOM. Kotler, P., & Armstrong, G. (2008). Principles of marketing (12th ed.) [p. 206, 434]. Upper Saddle River, NJ: Prentice-Hall. Kotler, P. & Keller, K.L. (2006). Marketing management (12th ed.) [pp. 320-322]. Upper Saddle River, NJ: Prentice-Hall. O’Guinn, T.C., Allen, C.T., & Semenik, R.J. (2009). Advertising & integrated brand promotion (5th ed.) [pp. 399, 409-410]. Mason, OH: South-Western Cengage Learning. Performance Research Associates. (2007). Delivering knock your socks off service (4th ed.) [pp. 3-7]. New York: AMACOM. Zeithaml, V.A., Bitner, M.J., & Gremler, D.D. (2009). Services marketing: Integrating customer focus across the firm (5th ed.) [pp. 492-508]. New York: McGraw-Hill Irwin. 5 Section 5 Software/ Online Planning Guide Sheets Page 5-6 Devarajan, R. (2003). Image is everything. Retrieved May 12, 2011, from http://www.blonnet.com/2003/05/28/stories/2003052800180900.htm Encyclopedia of Business (2nd ed.). (2011). Corporate identity. Retrieved May 12, 2011, from http://www.referenceforbusiness.com/encyclopedia/Con- Cos/CorporateIdentity.html#IMPORTANCE_OF_CORPORATE_IMAGE Hromadka, E. (2011). Brand awareness: Tips on building your company’s image. Retrieved May 12, 2011,, from http://www.allbusiness.com/north- america/united-states-indiana/1194553-1.html Jena, C. (Feb. 26, 2007. Linking employees to organisational brand. Retrieved May 12, 2011, from http://www.aspiresys.com/newsevents/webpages/ExpressComputer/Linki ng_employees.htm Marken Communications. (2011). Corporate image, we all have one, but few work to protect, project it. Retrieved May 12, 2011, from http://www.markencom.com/docs/03mar13.htm Robles, L. (2008, October 14). Employee image essential aspect of growing your business. Retrieved May 12, 2011, from http://utahpulse.com/featured_article/employee-image-essential-aspectgrowing-your-business 6 Section 5 Planning Guide Sheets Page 5-7 Knowledge/ Skill Statement Understands the tools, techniques, and systems that businesses use to create exchanges and satisfy organizational objectives Instructional Area Marketing Performance Element Acquire foundational knowledge of customer/client/business behavior to understand what motivates decision-making. Performance Indicator Explain factors that influence customer/client/business buying behavior (MK:014) Level Specialist SCANS Information 5; Systems 15; Basic Skills 1-2; Thinking Skills 12 21st Century Skills Critical Thinking & Problem Solving 1, 3; Communication & Collaboration 1 Objectives a. b. c. d. e. f. g. h. i. j. k. l. m. Sample Activity Define the following terms: behavior, perception, drive, cues, attitudes, beliefs, and expectations. Discuss the role that needs and wants play in behavior. Explain the selective processes that consumers use to respond to stimuli. Distinguish between attitudes and beliefs. Explain how cultural influences affect consumer behavior. Describe how social influences impact consumer behavior. Discuss how a person’s individual differences impact consumer behavior. Explain how psychological influences impact consumer behavior. Discuss situational influences that impact consumer behavior. Describe ways that final consumer behavior differs from that of business customers. Explain how environmental influences affect business-customers’ behavior. Discuss how organizational influences affect business-customers’ behavior. Explain why business professionals attempt to satisfy both a company’s needs and those of individuals when working with business customers. Arrange for a local business manager to speak to the class about factors that influence customer/client/business behavior in her/his industry both locally and globally. Ask the guest speaker to discuss what his/her business and others in the industry have done or plan to do to accommodate and/or eliminate some of the factors influencing customer/client/business behavior. Each student should write a one-paragraph summary of the speaker’s presentation. Resources Textbooks Boone, G., & Kurtz, D.L. (2009). Contemporary marketing 2009 (pp. 158-170). Mason, OH: South-Western Cengage Learning. Bovée, C. L., & Thill, J.V. (2008). Business in action (4th ed.) [pp. 222-224]. Upper Saddle River, NJ: Pearson Prentice Hall. Burrow, J.L. (2006). Marketing (2nd ed.) [pp.146-155]. Mason, OH: Thomson/SouthWestern. Clark, B., Sobel, J., & Basteri, C.G. (2010). Marketing dynamics: Teacher’s edition (2nd ed.) [pp. 205-212, 215-221]. Tinley Park, IL: Goodheart-Willcox Company, Inc. Etzel, M.J.; Walker. B.J.; & Stanton, W.J. (2007). Marketing (14th ed.) [pp. 96-107, 130, 131-136]. Burr Ridge, IL: McGraw-Hill Irwin. 7 Section 5 Planning Guide Sheets Page 5-8 Farese, L. S., Kimbrell, G., & Woloszyk, C. A. (2009). Marketing essentials (pp. 2829, 31-32, 263, 743). Woodland Hills, CA: Glencoe/McGraw-Hill. Grewal, D. & Levy, M. (2008). Marketing (pp. 132-143, 159-166). New York: McGraw-Hill Irwin. Kotler, P. & Armstrong, G. (2008). Principles of Marketing (12th ed.) [pp. 130-145, 162-163, 167-169]. Upper Saddle River: NJ: Prentice-Hall. Lamb, C.W., Jr.; Hair, J.F., Jr.; & McDaniel, C. (2003). Essentials of marketing (3rd ed.) [pp. 110-115]. Mason, OH: South-Western. Peppers, D. & Rogers, M. (2004). Managing customer relationships: A strategic framework (pp. 138-152). Hoboken, NJ: John Wiley & Sons, Inc. Perreault, W.D., Jr.; Cannon, J.P.; & McCarthy, E.J. (2008). Basic marketing: A marketing strategy planning approach (16th ed.) [pp. 152-168, 178-186]. Burr Ridge, IL: McGraw-Hill Irwin. Sheth, J. & Mittal, B. (2004). Customer behavior: A managerial perspective (2nd ed.) [pp. 80-86, 333-344]. Mason, OH: South-Western. Soloman, M. R., Marshall, G. W., & Stuart, E. W. (2008). Marketing: Real people, real choices (5th ed.) [pp. 147-165, 180-182]. Upper Saddle River, NJ: Pearson Prentice Hall. Software/ Online Chapter 6—analyzing consumer markets and buying behavior. (n.d.). Retrieved May 16, 2011, from http://lsb.scu.edu/~kfox/KotlerChapters/CH06.html Kacen, J., & Lee, J. (2002). The influence of culture on consumer buying behavior. Retrieved May 16, 2011, from http://www.bauer.uh.edu/kacen/documents/KacenLee_ImpulseBuyingJC P.pdf KnowThis.com (1998-2011). Business buying behavior. Retrieved May 16, 2011, from http://www.knowthis.com/tutorials/principles-of- marketing/business-buying-behavior.htm KnowThis.com (1998-2011). Consumer buying behavior. Retrieved May 16, 2011, from http://www.knowthis.com/tutorials/principles-of- marketing/consumer-buying-behavior.htm KnowThis.com (1998-2011). Consumer buying behavior: External influences. Retrieved May 16, 2011, from http://www.knowthis.com/tutorials/principles-of-marketing/consumerbuying-behavior/influences-culture-and-groups.htm O’Brien, S. (2006, February 1). Marketing factors: Consumer buying behavior. Retrieved May 16, 2011, from http://www.associatedcontent.com/article/19593/marketing_factors_cons umer_buying_behavior.html?cat=35 Storace, O. (2009, July 11). Revealing the why in consumer buying behavior. Retrieved May 16, 2011, from http://businessmanagement.suite101.com/article.cfm/revealing_the_why_ in_consumer_buying_behavior Utomo, D.S. (2007, July 16). Characteristics affecting consumer buying behavior. Retrieved May 16, 2011, from http://bizcovering.com/marketing-and- advertising/characteristic-affecting-consumer-purchase-behavior/ 8 Section 5 Planning Guide Sheets Page 5-9 Knowledge/ Skill Statement Understands the techniques and strategies used to foster positive, ongoing relationships with customers Instructional Area Customer Relations Performance Element Understand the nature of customer relationship management to show its contributions to a company. Performance Indicator Discuss the nature of customer relationship management (CR:016, CR LAP 2) Level Specialist SCANS Information 5; Systems 15; Basic Skills 1-2; Thinking Skills 12 21st Century Skills Critical Thinking & Problem Solving 1, 3; Communication & Collaboration 1 Objectives a. b. c. d. e. f. g h. i. j. k. l. Sample Activity Define the following terms: customer relationship management (CRM), customer experience management (CEM), customer-centric strategy, touch points, continuous improvement, and business process management (BPM). Discuss the nature of customer relationships in today’s society. Explain goals of customer relationship management (CRM). Discuss the importance of formulating a CRM strategy prior to implementing CRM processes and tools. Describe common CRM processes. Describe the role of customer experience management (CEM) in customer relationship management (CRM). Discuss the use of customer information in customer relationship management. Discuss the role of corporate culture in customer relationship management. Explain the impact of organizational structure on customer relationship management. Describe the relationship of customer relationship management and continuous improvement. Discuss the relationship of customer relationship management and business process management. Explain ways in which customer relationship management can benefit a business. Review and present the Customer Relationship Management Briefing (pp. 5-151 to 5-153) to students in a lecture or discussion format. Invite a guest speaker to talk with the class about the use and benefits of customer relationship management strategies. The speaker should also discuss the role of the corporate culture in customer relationship management and the connection among customer relationship management, continuous improvement, and business process management. Each student should write and submit a short summary of the discussion. 9 Section 5 Planning Guide Sheets Page 5-10 Resources LAP MBAResearch and Curriculum Center. (2010). Know when to hold ’em (Nature of Customer Relationship Management) [LAP: CR:002]. Columbus, OH: Author. MBAResearch and Curriculum Center. (2010). Know when to hold ’em (Nature of Customer Relationship Management): Instructor copy [LAP: CR:002]. Columbus, OH: Author. Textbooks Daft, R.L., & Marcic, D. (2009). Understanding management: Instructor’s edition (6th ed.) [p. 29, 55-56, 235]. Mason, OH: South-Western Cengage Learning. Jones, G.R., & George, J.M. (2008). Contemporary management (5th ed.) [pp. 350352]. New York: McGraw-Hill/Irwin. Kotler, P., & Armstrong, G. (2008). Principles of marketing (12th ed.) [pp. 16-18, 45, 112-113, 468]. Upper Saddle River, NJ: Prentice-Hall. Peppers, D. & Rogers, M. (2004). Managing customer relationships: A strategic framework (pp. 17-32, 111, 488-497). Hoboken, NJ: John Wiley & Sons, Inc. Perreault, W. D., Cannon, J. P., & McCarthy, E. J. (2008). Basic marketing: A marketing strategy planning approach (16th ed.) [pp. 81-82, 379]. Boston: McGraw-Hill/Irwin. Robbins, S.P., & Coulter, M. (2007). Management (9th ed.) [pp. 70-71, 74, 228-229, 312-313]. Upper Saddle River, NJ: Pearson Prentice Hall. Sheth, J. & Mittal, B. (2004). Customer behavior: A managerial perspective (2nd ed.) [pp. 362-385]. Mason, OH: South-Western. Soloman, M.R.; Marshall, G.W.; & Stuart, E. W. (2008). Marketing: Real people, real choices (5th ed.) [pp. 224-227]. Upper Saddle River, NJ: Pearson Prentice Hall. Workbooks/ Manuals Odgers, P. (2004). The world of customer service (pp. 7-8, 167-169, 190). Mason, OH: South-Western. Software/ Online Brendler, B. (2001-2011). Why does corporate culture matter. Retrieved May 12, 2011, from http://www.crm2day.com/editorial/EpyZukylZpqlLzXaev.php Bueren, A., Schierholz, R., Kolbe, L., & Brenner, W. (n.d.). Customer knowledge management—Improving performance of customer relationship management with knowledge management. Retrieved May 12, 2011, from http://web.iwi.unisg.ch/org/iwi/iwi_pub.nsf/wwwPublRecentEng/9E047 CC0ED6401CDC1256E18003A2D73/$file/Customer%20Knowledge%2 0Management%20%20Improving%20Performance%20of%20Customer%20Relationship% 20Management%20with%20Knowledge%20Management.pdf Chow, D. (2008, June 12). What exactly is touchpoint? Retrieved May 12, 2011, from www.customerthink.com/blog/what_exactly_touchpoint (2005, Fall). CRMA roundtable: Customer experience management. Retrieved May 12, 2011, from http://www.realmarket.com/required/CRMA_Roundtable_CEM.pdf Cobb, R. (n.d.). Want value from your acquisition? Try a customer-centric approach. Retrieved May 6, 2011, from http://www.oocities.org/shaw4545/aa/marketing03636.htm Duncan, L. (2006, January 10). Just what is customer experience management, anyway? Retrieved May 12, 2011, from www.marketingprofs.com/6/duncan3.asp Kenealy, B. (2008, January). Customer relationship management: CRM rises again. Retrieved May 12, 2011, from http://www.insurancenetworking.com/issues/2008_45/CRM_customer_r elationship_management_insurance_technology10339-1.html 10 Section 5 Planning Guide Sheets Page 5-11 Knowledge@Wharton. (2001, May). Making customer relationship management work. Retrieved May 12, 2011, from http://knowledge.wharton.upenn.edu/article.cfm?articleid=390 MBAResearch and Curriculum Center. (2010). Know when to hold ’em (Nature of Customer Relationship Management) [LAP: CR:002: Presentation software]. Columbus, OH: Author. Pivotal CRM. (2008). Surviving and thriving in a challenging market. Retrieved May 5, 2011, from http://viewer.bitpipe.com/viewer/printDocument.do?accessId=9320831& pagesToPrint=1,2,3,4,5,6,7,8&gotoPage=2&pageNum=2&method=recor d&resourceId=1222447195_860 Reichold, A., Kolbe, L., & Brenner, W. (n.d.). Performance measurement of CRM in financial services. Retrieved May 12, 2011, from http://web.iwi.unisg.ch/org/iwi/iwi_pub.nsf/wwwPublYearGer/30FE4CB AD9E0A387C1256EF300791D44/$file/PM%20in%20CRM%20of%20F S_IWI_HSG_final.pdf 11 Week 13 Sheets Topic Customer Relationship Management Key Points Define the term customer relationship management (CRM): Strategies, processes, and policies used by businesses to build, maintain, and maximize the long-term value of customer relationships o Helps businesses to understand and respond to customers’ changing needs o Emphasizes positive, meaningful, and long-term communication and interaction with customers o Involves the collection of customer information to draw conclusions about the customer’s needs and wants as well as predict the customer’s loyalty and value in the future Explain goals of customer relationship management (CRM). To maximize the value and effectiveness of all customer touch points o Touch points: All the opportunities that businesses have to connect with customers and reinforce their brand value To provide outstanding service to customers To maximize customer satisfaction To attract and retain loyal customers To cultivate and maintain positive, profitable relationships with customers To develop individualized relationships with customers To gather and track information about customers for use in business decision-making To understand customers and their needs so that these needs can be fulfilled in a manner satisfactory to customers and businesses To develop products that meet or exceed customer expectations To increase business profit To develop a competitive advantage Describe common CRM processes. Campaign management (usually conducted by the marketing department) o Targeting prospective customers o Distributing promotional materials to targeted prospects o Tracking response to promotional materials o Generating leads for sales Sales management (sometimes divided into lead management, offer management, and contract management) o Recording lead information o Qualifying leads o Prioritizing leads o Contacting leads o Making sales Service management o Providing after-sales services, such as: Maintenance and repair services Warranties and guarantees o Retaining customers Complaint management o Receiving customer complaints o Resolving customer problems o Communicating customer complains to the organization o Retaining customers 12 Week 13 Sheets Discuss the use of customer information in customer relationship management. By gathering and organizing customer information, a business can better determine and fulfill its customers’ needs and wants. Customer information is also used to identify the most profitable, loyal customers. After identifying these customers, the business may provide higher, better service to these customers to maintain their loyalty and increase their profitability. Discuss the nature of customer relationships in today’s society. Because customers now have so many different choices in the marketplace, they have become more selective about whom they do business with. When given the choice to do business with one of two businesses that sell nearly identical products at similar prices, customers often choose to purchase from the business that offers better customer service. As a result, customers’ expectations for customer service are higher. Describe the role of customer experience management (CEM) in customer relationship management (CRM). The business world has become increasingly focused on the customer versus the product. Many businesses have adopted customer-centric attitudes and strategies. o Customer-centric strategy: A plan of action used by businesses that shifts the focus from businesses and their products to customers and their needs An important component of CRM is customer experience management (CEM). o Customer experience management (CEM): Strategies, processes, and policies used by businesses to meet or exceed customer expectations for service and to provide customers with outstanding experiences/interactions at every touch point throughout their business transactions Explain the impact of organizational structure on customer relationship management. The organization should be structured so that customers have “seamless,” easy interactions with the company. To ensure that customers have “seamless” interactions with the company, all customer information must be available in one location to all employees who require it (usually using CRM technology). Companies with superior customer relationship management processes are much more likely to be organized according to customer segment or group. Discuss the role of corporate culture in customer relationship management. For customer relationship management to be successful, it must be supported by the corporate culture. Senior executives must believe and demonstrate that building and maintaining customer relationships is a corporate priority. Corporate values must be understood and embraced by all employees. Employee incentives can help ensure that employees embrace CRM strategies and processes. Also, employees must be given leeway to do what is necessary to satisfy customers. 13 Week 13 Sheets Discuss the importance of formulating a CRM strategy prior to implementing CRM processes and tools. Each company should design a unique CRM strategy that directly addresses its needs, organization, and customers. An important step in developing a CRM strategy is identifying the objectives/goals of the CRM program (e.g., to increase customer retention, to improve product offerings, etc.). Before implementing CRM processes and tools, each company must determine which members of its organization will be involved in CRM so that these individuals can be trained. CRM technology and tools should be selected after determining the company’s CRM strategy, objectives, and program participants. Discuss the relationship of customer relationship management and business process management. Customer relationship management and business process management work together to satisfy customers. Business process management: A type of management that focuses on the design and improvement of business processes (including CRM processes) to make them as efficient and effective as possible; strives to align business processes with customers’ needs and wants Business process management ensures that CRM processes meet the needs, wants, and expectations of customers, while CRM processes can gather customer information that can be used to ensure that business processes are designed with the end user—the customer—in mind. Describe the relationship of customer relationship management and continuous improvement. Continuous improvement: The activity of regularly updating one’s processes for better efficiency After developing a CRM strategy and implementing CRM processes, continuous improvement must occur to ensure that: o Company values remain in line with the CRM strategy o CRM processes remain effective Explain ways in which customer relationship management can benefit a business. Increased customer satisfaction and loyalty More customers and customer referrals Reduced costs Fewer complaints Lower employee stress levels Increased access to customer information (for use in business decisionmaking) Long-term profitability 14 Week 13 Sheets Knowledge/ Skill Statement Understands the techniques and strategies used to foster positive, ongoing relationships with customers Instructional Area Customer Relations Performance Element Utilize technology to facilitate customer relationship management. Performance Indicator Describe the use of technology in customer relationship management (CR:018) Level Specialist SCANS Information 5; Systems 15; Basic Skills 1-2; Thinking Skills 12 21st Century Skills Critical Thinking & Problem Solving 1, 3; Communication & Collaboration 1; ICT Literacy 1 Objectives a. b. c. d. e. f. g. h. Sample Activity Define the following terms: client intelligence, cross-selling, up-selling, relationship mapping, personalization, segmentation, and clustering. Explain the difference between customer relationship management technology and customer relationship management. Describe types of customer relationship management tools (e.g., CRM applications, databases, data warehouses, etc.). Discuss customer relationship management software approaches (e.g., operational, analytical, collaborative, sales force automation, etc.). Explain types of data commonly stored in a CRM system (e.g., contact data, demographic data, transactional data, relationship data, etc.). Discuss the benefits and drawbacks associated with CRM technology. Explain how CRM technology can be used to create a “single view” of a customer. Explain the importance of cleansing, standardizing, and updating data in a CRM data warehouse. Instruct each student to either visit a local business or talk with a business partner to discuss how the use of technology has impacted customer relationship management at that business. Each student should determine the types of technology the business uses and how their use has benefited the business. Students should report their findings to the class. Resources Textbooks Anderson, R.E., & Dubinsky, A.J. (2004). Personal selling: Achieving customer satisfaction and loyalty (pp. 40-45, 325-326, 386-387). Boston: Houghton Mifflin. Clark, B., Sobel, J., & Basteri C.G. (2010). Marketing dynamics: Teacher’s edition (2nd ed.) [pp. 493-494]. Tinley Park, IL: Goodheart-Willcox. Farese, L. S.; Kimbrell, G.; & Woloszyk, C. A. (2009). Marketing essentials (pp. 206, 227, 326-327, 594-595). Woodland Hills, CA: Glencoe/McGraw-Hill. Hoffman, K.D., & Bateson, J. (2006). Services marketing: Concepts, strategies, & cases (3rd ed.) [pp. 291-296]. Mason, OH: Thomson South-Western. Peppers, D. & Rogers, M. (2004). Managing customer relationships: A strategic framework (pp. 8-9, 17-19, 191-195, 287-294, 384-385, 489-497). Hoboken, NJ: John Wiley & Sons, Inc. Weitz, B.A., Castleberry, S.B., & Tanner, J.F. (2004). Selling: Building partnerships 15 Week 13 Sheets Workbooks/ Manuals (5th ed.) [pp. 170, 387-388, 480-481]. Boston: Irwin/McGraw-Hill. Odgers, P. (2004). The world of customer service (pp. 167-169). Mason, OH: SouthWestern. Software/ Online Ambler, S. (2002-2010). Mapping objects to relational databases: O/R mapping in detail. Retrieved May 12, 2011, from http://www.agiledata.org/essays/mappingObjects.html Binary Spectrum. (2011). Aspects of a CRM—customer relationship management software. Retrieved May 12, 2011, from http://www.binaryspectrum.com/industries/retail/Customer-relationshipmanagement.html Baker, P. (2009, April 30). Is CRM data an asset in its own right? Retrieved May 12, 2011, from http://www.insidecrm.com/features/crm-data-asset-043009/ Boyle, B. (2009). Using CRM software effectively. Retrieved May 12, 2011, from http://www.nysscpa.org/cpajournal/2004/704/perspectives/p17.htm Hall, C. (2005, February 17). The importance of quality for data warehousing and CRM. Retrieved May 12, 2011, from http://searchdatamanagement.techtarget.com/news/article/0,289142,sid91 _gci1139347,00.html# ILTA. (2009, March). Client intelligence: Answering the call for greater productivity. Retrieved May 12, 2011, http://www.twostep.com/assets/documents/papers_articles/ILTA_Client_ Intelligence.pdf Lassar, W.M., Lassar, S.S., & Rauseo, N.A. (2008, August 1). Developing a CRM strategy in your firm: Size up clients to build a competitive advantage. Journal of Accountancy, 206(2), 68-73. Retrieved May 12, 2011, from http://www.allbusiness.com/company-activitiesmanagement/operations/11477600-1.html Levit, M. (1999-2011). Is CRM technology living up to the hype? Retrieved May 12, 2011, from http://www.businessknowhow.com/marketing/crm.htm Maximizer Software. (2011). Building profitable client relationships. Retrieved May 12, 2011, from http://www.usfst.com/article/Issue-2/Customer- First/Building-Profitable-Client-Relationships/ Oracle. (2008, August). Sales 2.0: How businesses are using online collaboration to spark sales. Retrieved May 12, 2011, from http://whitepapers.techrepublic.com.com/abstract.aspx?docid=389353&p romo=100510 Salesboom.com. (n.d.). Introduction to CRM sales force automation. Retrieved May 6, 2011, from http://www.slideshare.net/Jackieken/word-document- introduction-to-crm-sales-force-automationdoc Wollan, R.E. (2006, March 2). Service in the customers’ eyes. Retrieved May 12, 2011, from http://www.crmproject.com/documents.asp?d_id=3781 16