Deck 2: History and Development of CRM

Question 1

Which was not a force that drove marketers to begin focusing on customerrelationships?

A) Technological advances in IT that enabled companies to record transaction details
B) Technological advances that enabled companies to enter into dialogue with customers
C) Direct marketing efforts that enabled companies to enter into one-on-one relationships with their customers
D) The creation of functional information silos enabling smooth data transfers within any organization
E) Writing of consultants pointing out that customer retention was the key to
Corporate profitability

Answer 1

The creation of functional information silos enabling smooth data transfers within any organization

Question 2

Some feel that CRM has its roots in marketing research. In what way(s) did marketing research help shape CRM?

Answer 2

Customer satisfaction studies have been carried out by marketing researchers since the 1960s. By using these satisfaction measures, others in the company were able to improve quality through the use of Total Quality Management (TQM) techniques. Thus, companies used marketing research satisfaction findings to improve their relationships with customers.

Question 3

How did the diffusion of personal computers within companies contribute to thedevelopment of CRM?

Answer 3

Diffusion of PCs meant every desktop had the capability to analyze customer data. This led to company divisions having the ability to manipulate their own customer data, develop their own marketing programs, and assess their own performance.Diffusion of PCs enabled those closest to the customer to develop and assess program and campaign performance in new ways.

Question 4

Database construction is easiest for what types of organizations? Most difficult for what types of organizations?

Question 5

What are the real barriers within most companies to effectively implementing a CRM system?

Question 6

Respond to the following observation: "IT is a tool but often in the area of CRM, IT becomes the plan."

Question 7

Before a CRM system is installed, a business plan should be developed, showing how CRM system features will relate to each business goal. Give examples of some typical CRM business goals.

Question 8

It is often said that CRM's complexity is due to its quantity of functions. What does this mean?

Question 9

Jill Dyche suggests that a program management office (PMO) be formed to expedite and coordinate the development of an organization's CRM system. What are the functions of a PMO?

Question 10

Customer data integration (CDI) enables an organization to accrue knowledge about the customer in a consolidate manner; but why is a single, integrated view of the customer difficult to attain?

Question 11

What are the key lessons that practitioners have learned regarding CRM analytics to date?

Question 12

What were the factors that caused CRM to appear when it did?

Question 13

Organizations can overcome the barriers to effective CRM implementation through communication. What should be communicated and to whom?