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CRM - Lecture notes 3

masters in business administration (Anna University)

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BA5003 CUSTOMER RELATIONSHIP MANAGEMENT L T P C

3 0 0 3
OBJECTIVES
 To understand the need and importance of maintaining a good customer relationship.
 To understand various methods and structure in customer relationship.
UNIT I INTRODUCTION 9
Definitions - Concepts and Context of relationship Management – Evolution - Transactional Vs
Relationship Approach – CRM as a strategic marketing tool – CRM significance to the CO1
stakeholders.
UNIT II UNDERSTANDING CUSTOMERS 9
Customer information Database – Customer Profile Analysis - Customer perception,
Expectation’s analysis – Customer behavior in relationship perspectives; individual and group CO2
customer’s - Customer life time value – Selection of Profitable customer segments.
UNIT III CRM STRUCTURES 9
Elements of CRM – CRM Process – Strategies for Customer acquisition – Retention and
CO3
Prevention of defection – Models of CRM – CRM road map for business applications.
UNIT IV CRM PLANNING AND IMPLEMENTATION 9
Strategic CRM planning process – Implementation issues – CRM Tools- Analytical CRM –
CO4
Operational CRM – Call Centre management – Role of CRM Managers.
UNIT V TRENDS IN CRM 9
e- CRM Solutions – Data Warehousing – Data mining for CRM – an introduction to CRM
CO5
software packages.
TOTAL: 45 PERIODS
TEXT BOOKS
1. G.Shainesh, Jagdish, N.Sheth, Customer Relationship Management A Strategic Prespective,
Macmillan 2010
2. Alok Kumar et al, Customer Relationship Management: Concepts and applications, Biztantra,
2008
3. H.Peeru Mohamed and A.Sahadevan, Customer Relation Management, Vikas Publishing
2005.

REFERENCE BOOKS
1. Jim Catheart, The Eight Competencies of Relationship selling, Macmillan India, 2005.
2. Assel, Consumer Behavior, Cengage, 6th Edition.
3. Kumar, Customer Relationship Management - A Database Approach, Wiley India, 2007.
4. Francis Buttle, Customer Relationship Management: Concepts & Tools, Elsevier, 2004.
5. Zikmund. Customer Relationship Management, Wiley 2012.

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COURSE OUTCOMES
Upon completion of the course, students will be able to
CO1 To gain in sight in relationship marketing
CO2 To use strategic customer acquisition and retention techniques in CRM
CO3 To understand the structural implications of CRM
CO4 To plan and coordinate with various functional areas in management to arrive at the strategy
CO5 To understand the new technological developments in CRM
MAPPING OF COs WITH POs AND PSOs
PROGRAMME
PROGRAMME OUTCOMES (POs) SPECIFIC
COs OUTCOMES (PSOs)
PO PO PO PO PO PO PO PO PO
PO10 PO11 PO12 PSO1 PSO2 PSO3
1 2 3 4 5 6 7 8 9

CO1 1 2 3 3 2 1 3 3 2 1 2 1 3 3 2

CO2 3 2 2 1 1 2 2 3 3 1 2 2 3 3 3

CO3 3 3 2 2 1 1 1 2 3 1 2 3 3 3 3

CO4 2 1 3 2 3 1 1 2 3 2 3 1 3 3 3
CO5 2 2 1 1 3 3 3 2 1 1 2 3 3 3 3

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Unit 1 – Introduction
Part – A
1 Define CRM.
According to Gartner, “CRM is a business strategy designed to optimize
Profitability, Revenue and Customer Satisfaction”.
2 Define Transactional Marketing.
Transactional Marketing is a business strategy that focuses on single,
“point of sale” transactions. The emphasis is on maximising the efficiency and
volume of individual sales rather than developing a relationship with a buyer.
3 Define Relationship Marketing.
According to Prof. Philip Kotler, “Relationship Marketing is the process of
building long term, trusting and win-win relationship with customers,
distributors, dealers and suppliers. Over time, relationship marketing promises
and delivers high quality, efficient service and fair prices to the other party. It is
accomplished by strengthening economic, technical and social ties between
members of two organisations or between the marketer and the individual
customer”.
4 List the types of CRM.
 Operational CRM
 Analytical CRM
 Collaborative CRM
5 What are all the limitations of CRM?
 Requires top management support
 Confusion in Attributes
 Problem in Implementation
 Customer dissatisfaction
6 List the five key principles of CRM.
 Understand what motivates the customers
 Treat Customer Individually
 Differentiate Offerings
 Increase Loyalty
 Providing efficient and consistent service
7 What are all the characteristics of CRM?
 Share of customer

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 Lifetime value of the customer

 Customer equity
 Use of technology
8 List the misconceptions of CRM.
 CRM is a Database Marketing
 CRM is a Marketing Process
 CRM is an IT issue
 CRM is about loyalty schemes
9 Why do we need CRM?
It helps businesses to gain an insight into the behaviour of their
customers and modify their business operations to ensure that customers are
served in the best possible way.
10 What are the objectives of CRM?
 To Provide Updated Information
 To Customise Strategies
 To Anticipate Problems
 To Prompt Follow-Up
11 Define cross selling.
Cross selling is the action or practice of selling an additional product or
service to an existing customer.
12 Define up selling.
Up selling is a sales technique where a seller induces the customer to
purchase more expensive items, upgrades or other add-ons in an attempt to
make a more profitable sale.
13 What is customisation?
Customisation is a strategy by which an organisation’s products or
services are individualized through personal engagement and dialogue with its
customers.
14 Difference between Transactional and Relationship marketing.
Basis of Difference Transactional Relationship
Marketing Marketing
Primary object Single transaction Relationship
General approach Action related Interaction related
Perspective Static Evolutionary-dynamic

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Intensity of contact Low High

15 Define Operational CRM.

It refers to services that allow an organisation to take care of their
customers. It provides support for various business processes, which can
include sales, marketing and service.
16 Define Analytical CRM.
It is defined as a decision support system that is targeted to helping
senior executives, marketing, sales and customer support personnel to better
understand and capitalise upon their customer needs, the company’s
interaction with the customer, and the customer buying cycle.
17 Define Collaborative CRM.
It deals with synchronisation and integration of customer interaction and
channels of communications like phone, email, fax, web etc. With the intent of
referencing the customers a consistent and systematic way.
18 Who are the stakeholders in a business?
 Business Owner
 VP of Sales and Sales Manager
 Salespeople
 Customer Service/ Support Manager etc.
19 What is Customer equity?
Customer equity is the total of discounted lifetime values of all of the
firm’s customers.
20 What is mass customisation?
It is a manufacturing technique which combines the flexibility and
personalisation of custom-made products with the low unit costs associated
with mass production.
21 Describe the stakeholder’s roles, responsibilities.
Stakeholders are individuals or groups that have an interest in the
success and progression of a company. Internal stakeholders include silent
partners, shareholders and investors. External stakeholder groups might
include neighboring businesses, strategic partners or community bodies such
as schools.
Stakeholders have responsibilities to businesses that include educating

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developers, financing projects, creating scheduling parameters and setting

milestone dates.
22 Who is a customer?
A customer is a person or organization that a marketer believes will
benefit from the goods and services offered by the marketer’s organization. As
this definition suggests, a customer is not necessarily someone who is
currently purchasing from the marketer.
23 Who are the stakeholders of CRM?
The stakeholders vary depending on the industry. Some of the
stakeholders commonly involved in CRM are top management, marketing
managers, and retail sales agents / call centre agents / field sales agents,
customers using self-care applications, dealers and product managers. Each
stakeholder has their own set of expectations from the CRM system. Based on
my experience in working with some of these stakeholders
24 Why businesses should adopt CRM?
Adopting CRM will give a company a competitive advantage by lowering
its production costs, boosting sales revenue, and expanding market share. It
can be difficult for sales teams to reduce costs. A CRM solution provides the
tools a company needs to improve accuracy and effectiveness.

Part – B
1 Describe the concepts and context of relationship marketing.
2 Discuss the evolution of CRM
3 Explain the key differences between transactional marketing and
relationship marketing approach.
4 What are the goals of CRM? Explain its types.
5 What do you mean by CRM as a strategic tool? Discuss.
6 Discuss CRM significance to the stakeholders.
7 Explain the important ways to deploy CRM. List down the advantages and
disadvantages in deploying CRM
8 Explain the phases in developing a CRM strategy using an illustration.
9 Explain with real world examples about the transactional Vs relationship
approach of CRM.
10 Discuss about the Significance of customer relationship management to

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its various stakeholders.

11 Explain the key issues relating to customer defections.
12 Discuss CRM as a strategic marketing tool for effective business
decisions.
13 Explain the role of CRM as a strategic marketing tool.

Unit 2 –Understanding Customers

Part – A
1 What is Customer Information Database?
Customer information database includes personal information, such as
contact addresses, phone numbers etc. It also includes family size, location
and other demographic information and geographical location.
2 Define Segmentation.
Segmentation is sub-dividing a market into distinct and homogeneous
subgroups of customers, where any group can conceivably be selected as a
target market to be met with distinct marketing mix.
3 Define Customer Service.
It is the process of ensuring customer satisfaction with a product or
service. It takes place while performing a transaction for the customer, such as
making a sale or returning an item.
4 What is Customer Profile?
Customer profile is a series of descriptive phrases that paint a picture of
a selected target consumer. A profile is built from demographic, expenditure,
lifestyle and media preference data and is used to immediately understand the
characteristics of a given customer.
5 List the components of customer profile.
 Geographic
 Demographic
 Psychographic
 Buyer Behaviour
6 What is Customer Profile Analysis?
It is undertaken to gain insight into a given customer base. It seeks to
understand the key factors that determine who is and conversely, who is not a
purchaser of a company’s products and services.

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7 Define Customer Value.

Customer value is the satisfaction of customer requirements at the
lowest total cost of acquisition, ownership and use.
8 List the factors of Market Segmentation.
 Geographic factors
 Demographic factors
 Psychographic factors
 Behavioural factors
9 What are the uses of Customer Profile Analysis?
 It is used to understand and predict the customer requirements.
 It is used for analysing the consumer behaviour.
 It is used for understanding about the demand characteristics of the
proposed real estate products.
10 Define Customer Satisfaction.
It is the degree of satisfaction provided by the goods or services of a
company as measured by the number of repeat customers. It occurs when the
performance meets customer expectations.
11 List the types of Customer value.
 Functional Value
 Social Value
 Emotional Value
 Conditional Value
12 Define Customer Perception.
According to Kolasa, “Perception is selection and organization of
materials which stems from the outside environment at one time or the other to
provide the meaningful entity we
Experience”.
13 What is Expectation Analysis?
Customer Expectations of service are beliefs about service delivery that
function as standards or reference points against which performance is judged.
14 What is Customer Delight?
Customer delight occurs when actual performance exceeds the desired
performance expectation.
15 What is Word of Mouth Communication?

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It includes what people tell each other about organisation. Because the
customers see word-of-mouth as an unbiased source of information, if
influences the expected service level to a great extent.
16 Define Customer Behaviour.
According to Belch and Belch, “Consumer Behaviour is the process and
activities people engage in when searching for, selecting, purchasing, using,
evaluating and disposing of products and services so as to satisfy their needs
and desires”.
17 List the factors influencing Consumer Behaviour.
 Internal factors: It includes Perception, Learning, Motivation etc..
 External factors: It includes Culture, Subculture, Cross- culture etc..
18 List the buying role of consumers.
 Initiator
 Influencer
 Decider
 Gatekeeper
 Buyer
 User
19 What is Industrial Market?
According to Philip Kotler, “The Industrial Market consists of all the
organisations that acquire goods and services that are sold, rented or supplied
to others”.
20 Define CLTV.
It is defined as “the sum of cumulated cash flows-discounted using the
Weighted Average Cost of Capital (WACC)- of a customer over his or her
lifetime (three years in most cases) with the company”.
21 Discuss advantages in analysing customer profile.
Customer profile provides businesses the ability to tailor communications
based on the specific interests of the customer. This, as a result, will enhance
engagement, experience, and ultimately improve sales. Customer profile helps
businesses in communicating with the right people at the right time.
22 How customer life time value for a product is determined?
To calculate customer lifetime value, you need to calculate average
purchase value, and then multiply that number by the average purchase

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frequency rate to determine customer value. Then, once you calculate

average customer lifespan, you can multiply that by customer
value to determine customer lifetime value.
23 Who are said to be internal and external customer of an organization?
An internal customer is someone who has a relationship with your
company, though the person may or may not purchase the product. It is often a
person who works within the company, such as general employees and
managers.
An external customer is a person who is not directly connected to your
organization other than by purchasing your product or service. This customer
could be a one-time purchaser or a person your work with long-term, providing
add-ons or customization options. External customers are also known as
“clients” or “accounts”.
24 What are the sources of customer information?
Customer Information from Trade Research Organizations, Customer
Surveys for Customer Information, Marketing Intelligence Platforms, Online
Research Panels, Internal Experts, and Outsourcing Providers.
25 How is customer expectation gap determined?
Listen to your customers, find out what your team knows, Experience the
customer journey firsthand, implement changes in your business that will
narrow the gap, Understand that it’s an ongoing process.

Part – B
1 Discuss the process of developing and analysing customer information
database.
2 Discuss the various factors influencing customer expectations of service.
3 Explain briefly the various factors influencing customer perception and
its strategies.
4 Who are individual customers and explain the individual decision making
process in detail?
5 Describe CLTV and its computational methods.
6 Explain the process of selection of profitable consumer segments.
7 What is collaborative CRM? Explain consumer behaviour from a
relationship perspective.

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8 What is customer life time value? How customer profit analysis helps to
understand customers?
9 Discuss about the behaviour of customers in relationship perspective
i.e., individual and group behaviour.
10 What is customer life cycle? Explain the phases in customer life cycle.
11 Explain in detail the dimensions of customer profile.
12 Explain consumer behaviour from a relationship perspective.
13 Explain the process of selection of profitable customer segments.

Unit 3 – CRM Structures

Part – A
1 Define Customer Retention.
Customer retention is the process when customers continue to buy
products and services within a determine time period.
2 What is Customer Interaction Management?
It is the technology that makes use of the valuable customer information
contained in CRM applications and takes customer relationships to a much
more personalised and intimate level.
3 What is Customer Defection?
Customer defection is the rate at which customers defect or stop the
usage of products of a company, business with high defection rate, would be
losing their existing customers.
4 What is Customer Acquisition?
Customer acquisition is a broad term that is used to identify the process
and procedures used to locate, qualify, and ultimately secure the business of
new customers.
5 What is Customer Retention?
Customer retention is the process when customers continue to buy
products and services within a determine time period.
6 What is the purpose of customer retention?
To increase customer retention, companies must encourage regular and
meaningful customer engagement. The objective of customer engagement is
to encourage loyalty and promote business through word-of-mouth marketing.
7 List the benefits of customer retention.

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 Possibility of repeat business

 Reduced costs for customer acquisition
 Fostering greater interaction between business and customer
 Having more delighted customers
8 List the difference between customer retention and customer acquisition.
Core task Customer Acquisition Customer
Retention
Philosophy Win the customer Care for the
customer
Characteristics Needs Customers
Hunter mentality, Segmentation, Farmer mentality,
Rip-down barriers Customer
penetration, Build-
up barriers etc..
Organisation/mana Narrow hierarchy, Internal International
gement competition etc.. cooperation,
(e.g) Qualitative
performance
targets etc..

9 List the causes of Customer Defection.

 Inconvenience
 Product failures
 Ethical Problems
 Competition
10 What is scenario analysis?
It helps a firm to understand its position of its competitors. The firm can
then define what it needs to do to improve its performance in the market and
develop relationships with its customers.
11 How to reduce Customer Defection?
 Measuring Retention Rate
 Comparing the lost profit
 Increase switching costs
 Distinguishing causes of customer attrition

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12 What is critical success factor?

 It is vital to have buy-in from top management.
 A strong sponsor is required
 Lack of Communication
 Do not lose sight of the customer’s need.
13 What is Strategic CRM?
Strategic CRM is a complex set of activities that together form the basis
for a sustainable and hard to imitate competitive advantage.
14 What is business plan?
A business plan is a written document that describes in detail how a new
business is going to achieve its goals.
15 List few retention strategies.
 Reducing strategies
 Sell and then sell again
 Frequent communication calendar
 Extraordinary customer service
16 What is CRM roadmap?
CRM roadmap is a strategic plan that identifies how a company can
meet and exceed its customer’s needs.
17 List the inputs of Customer Acquisition.
 Suspects
 Enquiries
 Lapsed and Former Customer
 Competitor’s customers
 Referral
 Existing Buyers
18 List few elements of CRM.
 Customer Knowledge
 Relationship Strategy
 Communication
 Individual Value Proposition
19 What are CRM metrics?
In CRM we use metrics to track performance and ultimately

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success. Metrics give you better control over your sales and marketing
effort. Metrics allow you to track performance more closely. The CRM
software’s are designed with metrics.
20 What is IDIC model of CRM?
It was developed by Peppers and Rogers, the consultancy firm. The
IDIC model suggest that companies should take Identify, Differentiate, Interact
and Customise actions in order to build closer one-to-one relationship with
customers.
21 State the elements of CRM
People Management, Lead Management, Sales force automation,
Customer Service, Marketing, Work flow automation, Business Reporting,
Analytics.
22 Differentiate market share and share of customer.

23 Mention any two-business application of CRM.

Client/ Server technology lifecycle, Web-based, e-customer lifecycle,
Enterprise CRM suites, Midmarket CRM suites, CRM special tools.

Part – B
1 Explain briefly the CRM process.
2 Discuss the various models of CRM.
3 Discuss the various guidelines of customer acquisition in detail.
4 Explain the customer retention strategies in detail.
5 What is customer defection? Highlight the strategies for prevention of
defection.

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6 Discuss CRM roadmap for business application? Explain with examples.

7 Discuss in detail the processes of CRM.
8 Explain different strategies for customer acquisition.
9 Discuss the strategies for customer acquisition, retention and prevention
of defection.

Unit 4 –CRM Planning and Implementation

Part – A
1 Define Strategic CRM:
Strategic CRM is a complex set of activities that together form the basis
for a sustainable and hard to imitate competitive advantage.
2 What is Consumer Expectation?
E-commerce has competition just a mouse click away and consumers
have become more demanding when voting with their pocket books.
Competitors that use CRM to truly understand their customers and respond to
their needs, will come out on top.
3 What is Product Leadership?
Product Leadership strategy constantly work hard to implement
innovation and renewal. These companies want to amaze customers, push
limits and discover the unknown.
4 What is customer Intimacy?
Customer Intimacy is characterised by the fact that companies build up a
relationship with customers.
5 What is CRM Planning?
A CRM plan is a key component of running the business, as it describes
how employees should deal with customers and provides a comprehensive
brand image that both customers and employees can count it.
6 What is definitive analysis?
It can be performed by using following techniques:
 Statistical techniques
 Data mining
 Machine learning techniques
7 List the benefits of Analytical CRM.
 Design and Implement Targeted Marketing Campaigns

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 Predictive Analytics
 Customer Segmentation
 Attracting Customers
8 What is Channel Analytics?
It helps to determine the customer behaviour on channel preferences,
like web channel, personal interaction, telephone channel etc.
9 What is Sales Force Automation?
It refers to systems that support the day-to-day sales activities of an
organisation. SFA system provides the software tools and information to all
sales people, which is required to support and manage the sales activities.
10 What is Enterprise Marketing Automation?
It provides a comprehensive view of the business environment, including
competitors and business trends. The CRM system helps marketing
professionals capture and manage customer response in the CRM database
and analyse the customer and business value of a company’s marketing
campaigns.
11 What is Call Scripting?
It access organisational databases that track similar issues or questions
and automatically generate the details to the CSR who can then relay them to
the customer.
12 What is Call Centre?
A call centre is an office in a centralised location and is used solely for
the purpose of transmitting and receiving a very large amount requests and
needs from customers via telephone and sometimes email.
13 What is Predictive Dialing?
It automatically dials outbound calls and when someone answers, the
calls is forwarded to an available agent.
14 What is Interactive Voice Response?
It directs customers to use touch-tone phones or keywords to navigate or
provide information.
15 What are objectives of call centre?
 Increased Sales
 Customer Service
 Customer Retention

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 Optimal Resource Utilisation

16 What are the roles of CRM Manager?
 Customer Service
 Marketing
 Data Analysis
 Staff Supervision
17 List the types of call centre.
 Inbound/Outbound
 International/Domestic
 In-House/Outsourced
18 Who is a CRM Manager?
A CRM Manager is someone who knows their customer’s needs, wishes
and dreams. He/ She be well versed in the value delivered to customers and
the problem; customers are trying to solve.
19 What is the purpose of Analytical CRM?
The main purpose is to gather customer information from various
channels and gain knowledge about customer’s behaviours and buying pattern
as much as possible.
20 What is the purpose of Operational CRM?
The main purpose is to generate leads, convert them into contacts,
capture all required details and provide service throughout customer lifecycle.
21 List the issues in implementing CRM.
 The CRM Product Doesn't Fit In.
 Lack of Integration Capabilities.
 Lack of expertise of the CRM vendor.
 Lack of User Adoption.
 Lack of Business Insight.
22 What is operational CRM?
Operational-CRM refers to services that allow organizations to take good
care of their customers. This aspect of CRM provides support for different
business processes including sales, service and marketing. Data aggregation
system, call centers and contact centers are a few examples of operational-
CRM.
23 Differentiate analytical CRM with operational CRM.

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Analytical CRM is supports back - office operations and strategic

analysis and includes all systems that do not deal directly with the customers.
Operational CRM is supports transactional processing for day-to-day
front office operations or systems that deal directly with the customers.
24 State the role of a CRM manager.
The CRM Manager is responsible for retention campaigns, from
conceptualization through to analysis. This includes idea generation, proposal
preparation, overseeing the production process and overseeing execution. A
degree in marketing or a related field is desired for this position.
25 What are problems of call centre management?
Agent Recruitment and Retention, Accurate Reporting and Analytics,
Increasing Customer Expectations, Bad Customer Experiences are Magnified,
Workforce Optimization.

PART – B
1 Explain the different types of CRM strategies.
2 Describe strategic planning process with its implementation patterns.
3 Discuss the phases in CRM planning & implementation.
4 Explain CRM tools in detail.
5 Discuss the steps in analytical CRM process.
6 Discuss the different applications of operational CRM.
7 Discuss the Call centre technology and its operational challenges.
8 Explain the role, traits and categories of CRM managers.
9 Explain the classification of system connected to CRM.
10 Discuss the steps in implementing CRM.
11 Elucidate the CRM strategic planning process with example.
12 Explain the role of CRM managers in planning and implementing
strategic CRM.
13 What are CRM tools? Discuss the operational issues in planning and
implementation of CRM.
14 Describe the role of CRM managers.
15 Examine the issues involved in implementing strategic CRM.

Unit 5 – Trends in CRM

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Part – A
1 What is CIM?
It is the technology that makes use of the valuable customer information
contained in CRM applications and takes customer relationships to a much
more personalised and intimate level.
2 What is Customer Relationship Portal?
It brings together all the disparate interaction pieces necessary for
gaining and retaining customers. The portal software creates a single virtual
place where all customer contacts meet the enterprise.
3 What is Interactive Relationship Management?
It brings out an effective meaning from incidents, such as a customer
has pulled out an unusually large amount from his savings account or
deposited a large amount, it needs to be coupled with the analysis made by the
analytical tool used by the bank, and it would probably represent a marketing
opportunity for the bank’s investment division.
4 What is EPOS?
An electronic Point of Sale and retail scanner system is the amount of
timely and accurate information they deliver. Advances in technology have
significantly aided the scope for data analysis.
5 List the importance of technology in CRM.
 Data Consolidation and Analysis
 Customer Identification and Retention
 Cross- Selling Opportunities
 Portability
6 What is E-commerce?
E-commerce (EC), an abbreviation for electronic commerce, is the
buying and selling of goods and services, or the transmitting of funds or data,
over an electronic network, primarily through the internet and electronic media.
7 What is E- CRM?
E- CRM is the technique that enterprises use to integrate internal
organisation resources and external marketing strategies to understand and
fulfil their customers’ needs through the use of information technology.
8 8. Difference between Conservative and e- CRM.
Basis of Conservative CRM e- CRM

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Difference
Customer Traditional means- retail Through Internet, e-
Contacts store, telephone or fax. mail, wireless, mobile
and PDA technologies.
System Interface Works with backend Designed for front- end
application through ERP as well as backend
system. applications through
ERP, data warehouse,
datamart.

System It requires PC clients to Here, browser is the

download various applets and customers’ portal to e-
applications. CRM.

9 List few characteristics of CRM.

 Share of Customer
 Lifetime Value of the Customer
 Customer Equity
 Greater focus on High- Value Customers
10 What is Customer Analytic Software?
This software predicts measures and interprets customer behaviours,
allowing companies to understand the effectiveness of e- CRM efforts across
both inbound outbound channels.
11 What is Data Mining Software?
This software builds predictive models to identify customers most likely
to perform a particular behaviour such as purchase an upgrade or churn from
the company.
12 Define Customer Interaction Centre.
It is a comprehensive customer service entity in which selling companies
take care of customer service issues communicated through various contact
channels. It allows customers to communicate and interact with a company in
whatever way they choose.
13 What is Sales Force Automation?
It refers to systems that support the day-to-day sales activities of an

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organisation. SFA system provides the software tools and information to all
sales people, which is required to support and manage the sales activities.
14 What is on demand CRM?
The term ‘on demand CRM’ refers to offering customer relationship
management solution in cloud or in private cloud, without the necessity to
deploy, administer and host software on the company’s server.
15 What is BOTs?
A bots (short for “robots”) is a programme that operates as an agent for
a user or another programme or simulates a human activity. They use plain
English to locate content on the web and are also used as conservational
engines that work in the real time or through e- mail messages.
16 What is Voice Portal?
It allows users to access the content on a website through a cell-phone.
It helps in finding application in query-based, transaction-based, corporate
intranet environments.
17 List few applications of e- CRM.
 Sales Applications
 Marketing Applications
 Customer Service and Support Applications
 Customer Interaction Management
18 List few advantages of e-CRM.
 Increased Customer Loyalty
 More Effective Marketing
 Greater Efficiency and Cost Reduction
 Improved Customer Service and Support
19 Define Data Warehousing.
A series of analytical tools works with data stored in databases to find
patterns and insights for helping managers and employees make better
decisions to improve organizational performance.
20 Define Data Mining.
It is the search for relationships and global patterns that exist in large
databases but are ‘hidden’ among the vast amount of data, such as a
relationship between patient data and their medical diagnosis. These
relationships represent valuable knowledge about the database and if the

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database is a faithful mirror, of the real world registered by the database.

21 What is CRM Software?
CRM Software is an essential piece of equipment for any company or
organisation that wants to achieve the maximum return on their marketing, fully
capitalise on their sales leads and prospects, and cultivate ongoing, lifetime
relationships their current and established customers.
22 List out the popular CRM software packages.
Customer Relationship Management (CRM) Software include: Nimble,
Salesforce, HubSpot CRM, Pipedrive, Oracle CRM, Insightly, Microsoft
Dynamics 365, and Freshsales.
23 Briefly discuss about the application of data mining technology in CRM.
The application of data mining tools in CRM is an emerging trend in the
global economy. Analyzing and understanding customer behaviours and
characteristics is the foundation of the development of a
competitive CRM strategy, so as to acquire and retain potential customers and
maximize customer value.
24 Discuss the characteristics of data mining.
Large quantities of data, incomplete data, Complex data structure,
Heterogeneous data stored in legacy systems.
25 What are the steps to implement of data warehousing?
1. Enterprise strategy: Here we identify technical including current
architecture and tools. We also identify facts, dimensions, and
attributes. Data mapping and transformation is also passed.
2. Phased delivery: Data warehouse implementation should be
phased based on subject areas. Related business entities like
booking and billing should be first implemented and then integrated
with each other.
3. Iterative Prototyping: Rather than a big bang approach to
implementation, the Data warehouse should be developed and
tested iteratively.

Part – B
1 Explain the components of e-CRM solutions in detail.
2 What is CRM? Explain its requirements for the CRM implementation.
3 Define Data warehousing. Explain its architecture for CRM.
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4 Explain the various components of data warehousing. List its limitations.

5 What is data mining in CRM? Mention few applications.
6 What is CRM software? Describe the selection patterns of CRM software
packages.
7 Write about ORACLE & PEOPLE SOFT.
8 Discuss about the CRM software packages.
9 Examine the changing trends in CRM.
10 Discuss and differentiate how CRM process is carried out in B2B and
B2C industries.
11 Discuss the need for data warehousing and data mining and its
applications in CRM.
12 Explain the various E-CRM tools.
13 Write short notes on:
 Data warehousing
 CRM in service
 Customer value management in business markets
 Role of interactive technologies in CRM.

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