Customer Relationship Management
109 flashcards by MentisLibrary
Managing the customer relationship as a system: the data model behind a CRM, segmentation, lifecycle and journey stages, pipeline and automation, retention and loyalty, service, privacy law and the metrics that judge it.
- What is customer relationship management?
- The strategy, processes and systems an organization uses to manage every interaction with prospects and customers across their whole relationship, in order to grow its value.
- What is the difference between CRM as a strategy and CRM as a system?
- The strategy defines which customers matter, what each relationship should look like and who owns it; the system stores and automates the resulting process.
- What are operational, analytical and collaborative CRM?
- Operational CRM runs the day-to-day processes of sales, marketing and service; analytical CRM turns the resulting data into insight; collaborative CRM shares information across teams and channels.
- Why do CRM implementations most often fail?
- Poor user adoption, poor data quality, and configuration that does not match how people actually work.
- What is a single customer view?
- One reconciled record per customer that brings together identity, transactions, interactions and consent from every system that holds them.
- How do leads, contacts and accounts differ in a CRM data model?
- A lead is an unqualified individual not yet linked to a known organization; a contact is a person in a known relationship; an account is the organization or household the contacts belong to.
- How does business-to-business CRM differ from business-to-consumer CRM?
- Business buying involves several people, longer cycles and account-level value; consumer relationships are usually one person, higher volume and shorter cycles.
- What is relationship marketing?
- An approach that prioritizes retaining and developing existing customers over continually acquiring new ones.
- What distinguishes a CRM from a customer data platform?
- A CRM is a system of record for managed relationships, mainly known contacts and their transactions; a customer data platform ingests behavioral data from many sources, resolves identity and builds unified profiles for activation.
- What is a system of record?
- The single authoritative source for a given piece of data, which every other system reads from rather than duplicating.
- What drives CRM user adoption?
- Making the system faster than the workaround: prefilled data, mobile access, minimal required fields, and reports the users themselves rely on.
- What is a customer-centric organization in CRM terms?
- One whose processes, metrics and incentives are organized around customer segments and outcomes rather than around products or channels.
- What is first-party data?
- Data an organization collects directly from its own customers and interactions, under its own relationship and consent.
- What is zero-party data?
- Information a customer deliberately and proactively provides, such as stated preferences, intentions or profile answers.
- What is the difference between second-party and third-party data?
- Second-party data is another organization's first-party data obtained directly through an agreement; third-party data is aggregated and sold on by a party with no direct relationship to the individual.
- What is identity resolution?
- The process of determining that several identifiers, such as an email address, a device, a phone number and an account, belong to the same person.
- What is a golden record?
- The single reconciled version of a customer built by merging duplicates and choosing the most reliable value for each field.
- What is data decay in a CRM?
- The steady loss of accuracy as people change jobs, addresses, phone numbers and email addresses.
- What are the main dimensions of data quality?
- Accuracy, completeness, consistency, timeliness, uniqueness and validity.
- What is data enrichment?
- Adding attributes to a record from another source, such as firmographic details, technology usage or address standardization.
- What is data governance in a CRM context?
- The assignment of ownership, definitions, standards and change control for customer data.
- Why is custom field sprawl a problem?
- Every added field creates another thing to fill, maintain, report on and interpret, and unmaintained fields silently make reports wrong.
- How do systems typically integrate with a CRM?
- Through APIs for on-demand reads and writes, webhooks for event-driven pushes, and scheduled synchronization or ETL for bulk movement.
- What is a preference centre?
- A page where a customer sets which communications they want, on which topics, at what frequency and by which channel, with the choices written back to their record.
- What is segmentation in a CRM?
- Dividing the customer base into groups that should be treated differently, based on value, behavior, need or lifecycle stage.
- What is RFM analysis?
- Scoring customers on how recently they purchased, how frequently they purchase and how much they spend, then grouping them by the combined score.
- Why does behavioral segmentation usually outperform demographic segmentation?
- What a customer has done predicts what they will do far better than who they are.
- What is lifecycle stage segmentation?
- Grouping customers by where they are in the relationship, such as prospect, new, active, at risk, lapsed or won back.
- What is value-based customer tiering?
- Grouping customers by their current or predicted value so that service levels and contact intensity match the return.
- What is a suppression list?
- A maintained list of records that must not receive a given communication, covering unsubscribes, complaints, bounces, legal exclusions and active support cases.