Attracting and Retaining Longterm Relationships

Question 1

How to attract and retain customers

Answer 1

• Define and measure retention rate
• Distinguish/identify customer attrition causes
• Compare lost CLV to reducing defection rate

Question 2

Retention dynamics - Marketing tunnel

Answer 2

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Question 3

Managing the customer base

Answer 3

o	Reduce customer defection
o	Increase customer longevity
o	Share of wallet & cross/upselling
o	Terminate low-profit customers
o	Focus on high-profit customers

Question 4

Terminating low-profit customers

Answer 4

Aim: Stop people from buying too many products with reduced prices

By, e.g. telling the customer that the product is not available anymore even though it is.

Question 5

Building loyalty

Answer 5

• Interact closely with customers
• Develop loyalty programs
• Create institutional ties

Strategy: create ties to the company by introducing loyalty points for example

Question 6

Brand communities

Answer 6

A specialized community of consumers and employees whose identification and activities focus around the brand

Question 7

Value creation practices

Answer 7

• Social networking
• Impression management
• Community engagement documenting
• Brand use

Question 8

Cultivating customer relationships - 2 apporaches

Answer 8

• Customer relationship management (CRM)

* Customer value management (CVM)

Question 9

Customer relationship management (CRM) - Definition

Answer 9

The process of carefully managing detailed information about individual customers and their “touching points“ to maximize loyalty

Question 10

Customer relationship management (CRM) - How to

Answer 10

1) Customer In
2) Keep and maintain customers
3) Cross + up (make the customers by more of your products)
4) Back (after losing the customer: get the back)

Question 11

Customer relationship management (CRM) - Methods

Answer 11

• Personalizing/permission marketing
• Customer empowerment
• Customer reviews/ recommendations
• Customer complaints