Challenges in manging customer relationships in today’s world

Question 1

Pillars of CRM

Answer 1

1. Customer relationships are stand-alone investments that increase in revenue and profit over time.
2. Customer relationships are like loving marriages in which both parties live happily ever after
3. Customer relationship valuation is easy and linear, accounting for acquisition, development, and retention.

Question 2

Key insights that changed the way we see CRM

Answer 2

1. Customer relationships are not independent but interact on firm and customer level
2. Relationship types and termination
3. Relationship maintenance cost and profitability
4. Strategic behaviour on both relationship sides
5. Multi-faceted, complex, and difficult valuation
6. Churn prevention and loyalty to product portfolio