Page 281 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Customer Relationship Management

Notes a product to be delivered is a key component of improving customer satisfaction and driving
customer value. As more products allow for mass customization, more of these measures will
be tied to specific customers. While most of the measures within supply chain operations and
systems refer to suppliers, some of these measures may have applicability for understanding
customer behaviour. Some of these measures include:

Fill rate The number of items ordered compared with items shipped. Fill rate can be
calculated on a line item, SKU, case or value basis.
On time ship What percent of orders where shipped on or before the requested ship date? On time
rate ship rate can be calculated on a line item, SKU, case or value basis.
Performance to What percentage of orders where shipped on or before the promised ship date? In
promise some cases, some items may be on back order or delayed for whatever reason. This
metric captures the overall conformance with promised ship dates.
Backorders The number (or percentage) of unfulfilled orders.
Customer order The average time it takes to fill a customer order.
cycle time
Cash to cycle The number of days between paying for raw materials and getting paid for the
time product by the customer.
Supply chain The total time it would take to satisfy a customer order if all inventory levels were 0.
cycle time
Perfect Order The error-free rate of each stage of an order. Error rates are captured at each stage
Measure (order entry, picking, delivery, shipped without damage, invoiced correctly) and
multiplied together.
Upside The ability of a supplier to meet additional demand requirements
flexibility

Website Operations: With the advent of the Internet, companies have launched web sites for a
variety of purposes including, marketing, sales and support. Because of the heavy use of marketing
on the Internet, web site operational measures include many marketing operations measures.
Some are:

Visitor count How many people have visited a web site?
Unique visitor How many unique people have visited a web site? This measure does not double-
count count users who visit a site multiple times in a period. Web sites can have difficulty
in accurately determining unique visit counts, especially for those visitors who have
chosen not to identify themselves by not registering with a site (anonymous users),
visitors who use multiple machines to visit a web site, and visitors who disable
cookies in their browser preventing the system from anonymously identifying
them.
Page hits How many pages have been downloaded from a site, or how many times a single
page has been visited in the site?
Duration Total time a visitor spent on a page or a site.
CTR Click-through rate. What percentage of visitors clicked on a banner ad or other form
of internet marketing to visit the advertised web site?
Impressions How many visitors viewed a page that contained an advertisement of some kind?
Registered users How many visitors registered with the site?
Breakage What percentage of visitors started interacting with a site (for example, by starting a
survey or purchasing a product), but chose not to complete the interaction.
Click stream Not a measurement per se, but a source of many measurements. The click stream is
the sequential history of all interactions with a visitor on a web site usually stored
within log files in the web server. This behavioural data is used to derive page hits,
visitor counts, counts of images and advertisements viewed, etc.

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