Chapter 3:
Customer Relationship Mgmt
Course
Overview
Process
Power
Concepts
Ch 1: Supply Chains
Ch 2: Logistics
Ch 3: CRM
Ch 4: Procurement
Ch 6: Integrated Ops
Ch 8: Transportation
Ch 9: Warehousing
Ch 10: Packaging
Ch 11: Global SCM
Ch 12: Network Design
Ch 13: Ops Analysis
Ch 14: Collaboration
Ch 15: Perf Measurement
Ch 16: Risk/Sustainability
2/3/2015
Process
Power
Concepts
Definitions: Who is
the Customer?
Process
Power
Concepts
Presentation
Game Plan
Customer-Focused Marketing
Customer Service
Customer Satisfaction
Customer Success
Developing CRM Strategy
4
2/3/2015
Process
Power
Concepts
Customer-Focused
Marketing
Process
Power
Concepts
Basic Marketing
Principles
2/3/2015
Process
Power
Concepts
Transactional vs.
Relationship Mktg
Process
Power
Concepts
Relationship Mktg:
Segment of One
2/3/2015
Process
Power
Concepts
Discrepancies to
Overcome for Exch
Process
Power
Concepts
Supply Chain
Service Outputs
10
2/3/2015
Process
Power
Concepts
Customer service
Customer satisfaction
Customer success
11
Process
Power
Concepts
Customer
Service
12
2/3/2015
Process
Power
Concepts
Basic Customer
Service Attributes
Right amount
Right product
Right time
Right place
Right place
Right condition
Right information
13
Process
Power
Concepts
Elements of
Customer Service
Availability
Fill rates
Stockout frequency
Orders shipped
complete
Service Reliability
Op Performance
Speed
Consistency
Flexibility
Malfunction recovery
Damage free
Error-free invoices
Shipment-order
match
Shipped to correct
location
Accurate info
14
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The Perfect
Order!
Process
Power
Concepts
Delivered complete
Delivered on time
+
15
Process
Power
Concepts
Zero-Defect
Performance
Therefore, the
probability that any
order has a problem
is 11.5% (!!!)
What resources are
needed to achieve a
zero-defect level?
16
2/3/2015
The Basic
Service Platform
Process
Power
Concepts
Service platform for customer A
Operational performance =
High
Service reliability = Above
Operational
average
Performance
Level
Availability
Level
Basic
Service
Platform
Service
Reliability
Level
17
Process
Power
Concepts
18
2/3/2015
Process
Power
Concepts
Customer
Satisfaction
19
Process
Power
Concepts
Cust Satisfaction:
What is it?
Expectancy disconfirmation:
If
If
20
10
2/3/2015
Process
Power
Concepts
Expected Logistics
Performance
Reliability
Responsiveness
Access
Communication
Credibility
Security
Courtesy
Competency
Tangibles
Knowing the
customer
21
Process
Power
Concepts
Cust Expectations:
From Where?
22
11
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Process
Power
Concepts
Gap 1: Knowledge
Over commitment or
promising higher levels of
performance than can
actually be provided
Gap 5: Perception
Gap 3: Performance
Gap 4: Communications
Gap 2: Standards
Customers sometimes
perceive performance to be
higher or lower than actually
achieved
Gap 6: Satisfaction/Quality
23
Process
Power
Concepts
Increasing
Cust Expectations
24
12
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Process
Power
Concepts
But what if
customer
requirements are
not met?
25
Process
Power
Concepts
Customer
Success
26
13
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Three Levels of
Customer Focus
Process
Power
Concepts
Level 3 Focus
Level 2 Focus
Level 1 Focus
27
Process
Power
Concepts
Knowing Individual
Cust Requirements
Requirements
Processes
14
2/3/2015
Process
Power
Concepts
Process
Power
Concepts
Developing
CRM Strategy
30
15
2/3/2015
Process
Power
Concepts
Framework for
CRM Strategy Choice
31
Process
Power
Concepts
CRM: Trending in
Recent Years
16
2/3/2015
Process
Power
Concepts
Presentation
Recap
Customer-Focused Marketing
Customer Service
Customer Satisfaction
Customer Success
Developing CRM Strategy
33
Chapter 3:
Customer Relationship Mgmt
34
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