MKT610 Assignment 1 Fall 2011 solution
Friday, October 28, 2011 Posted In Mkt Edit This1. You are required to analyze and conduct cost and benefit analysis from organization’s and customer’s perspective This should include
What benefits does a CRM system offer to Style Inn
Answer:-
Customer relationship management (CRM) is a process that Style In use to track information that relates to their customers. This is typically a large database that integrates with the Internet which allows a Style In to keep track of large amounts of data regarding its customers. This type of software provides a number of advantages to businesses.
1. Collect Important Data
o One of the biggest benefits of using this type of program is that it helps Style In collect important data. By using CRM you can enter the customer's name, address, phone number, email address and other personal info. You can also keep track of exactly when the customer last made a purchase and what they bought. If the customer did not make a purchase, you can also keep track of this information. Without this type of software, most sales representatives could not keep track of all of this
information.
Targeted Marketing
o Another benefit of using CRM is that it helps Style In better market to a targeted group of customers. These databases can keep track of very detailed information about customers and individuals can be grouped together based on certain characteristics. This allows you to zero in on this specific group of people. This way the you can spend less on mass marketing and more on marketing to customers that have a high likelihood of purchasing.
Develop Relationships
o Customer relationship management programs can also help Style In develop relationships with their clients. With this type of software, you can keep track of birthdays, anniversaries and purchase dates. This allows your Style In to periodically check up with the customer on these important dates. For example, your Style In could send a customer a birthday card. While it may not seem like much, it helps keep your name fresh with the customer. Then when the customer needs to buy something,
he will be more likely return to the store.
Close More Sales
o CRM can also help a Style In close more sales over the long term. When a sales representative is in the process of selling to a customer, he can keep notes in the database. The sales rep will then have a record of small details and preferences of the customer enabling him to provide better individualized service. This will stick out in the customer's mind and increase the chances of closing the sale.
What are the potential costs of a CRM system for Style Inn?
Answer:-
Customer relationship management (CRM) is a widely implemented strategy for managing a Style In’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the Style In already has, entice former clients back into the fold, and reduce the costs of marketing and client service. Customer relationship management describes a Style Inwide business strategy including customer-interface departments as well as other departments. Measuring and valuing customer relationships is critical to implementing this strategy.
One of the largest challenges that customer relationship management systems face is poor usability. With a difficult interface for a user to navigate, implementation can be fragmented or not entirely complete.
Similarly what benefits does a CRM approach offer to the customers of Style Inn
Answer
A CRM system may be chosen because it is thought to provide the following advantages to Style IN:
• Quality and efficiency
• Decrease in overall costs
• Decision support
• Enterprise agility
• Customer Attention
• What are the potential costs of a CRM system for customers?
Solution
CRM processes that help identify and target their best customers, generate quality sales leads, and plan and implement marketing campaigns with clear goals and objectives;
- CRM processes that help form individualized relationships with customers (to improve customer satisfaction) and provide the highest level of customer service to the most profitable customers;
- CRM processes that provide employees with the information they need to know their customers' wants and needs, and build relationships between the company and its customers.
Customer relationship management tools include software and browser-based applications that collect and organize information about customers. For instance, as part of their CRM strategy, a business might use a database of customer information to help construct a customer satisfaction survey, or decide which new product their customers might be interested in.
