Chapter 11 Flashcards
What is Customer Relationship Management (CRM)?
Essential part of the marketing strategy. Brands that systematically work on developing and maintaining relationships with individual customers based on customer data.
What is Customization?
Increasing customer revenue through the creation of tailor-made offers.
What is Customer Lifetime Value (CLV)?
Total of all future profits (revenue - cost) resulting from a customer. In other words, how much the customer is worth in the time they are customer.
What is Customer Equity?
All customer lifetime values of all customers for a specific organization.
What is Customer Engagement Value (CEV)?
A comprehensive term that measures the total value of the customer through capturing his transactional and non-transactional behaviors.
What is the CRM Process?
Adjusting the offers to the wants and needs of the customer based on customer data.
What is Personalization?
Personalized offer, value proposition and a customer experience that meets the customer’s wishes.
What is Individual Value Proposition?
A business or marketing statement that a company uses to summarize why a consumer should buy a product or use a service.
What is Basic Data?
Identification data that is essential to being able to recognize the customer for administrative, marketing and communication purposes.
What is Profile Data?
Additional, statistic data, used for compiling customer profiles and segments.
What is Behavioral Data?
Dynamic data that changes continuously as a result of the interaction between the digital provider and the customer.
What is Usage Data?
Dynamic data that also changes continuously, but this happens as a result of the interaction between the users and the products.
What are Digital Data Resources?
The multiple ways of retrieving valuable data.
What is First-Party Data?
Information that organizations directly collect from customers.
What are Third-Party Cookies?
Collecting data through cookies on websites, apps and other channels.
What is Customer Segmentation?
Segmenting customers based on customer value, interests, preferences, or willingness to enter relationships.
What is Target Segmentation Selection?
Identifying target segments for specific marketing activities.
What is Customer Profile Analysis?
Determining the characteristics of buyers of a specific product.
What is Response Analysis?
Identifying variables that predict the response to a marketing activity.
What are Acquisition Profiles?
Detecting promising prospects and predicting responses to promotional offers.
What are Predictive Analytics?
Predicting customer behavior, purchasing behavior, future customer revenues and opportunities for customer retention.
What are Retention Profiles?
Detecting potential defectors and predicting responses to churn reduction activities.
What is Ubiquitous CRM?
A synonym for this is omnipresent. Contextual customer data are automatically gathered.
What are Customer Groups?
Bringing together customers that are alike.
What is a Customer Profile?
Profile that describes the characteristics that a customer must have in order to belong to a particular customer group.
What is Personal Relevance?
The content of the communication aligns with the needs of the individual customer.
What is Thematic Relevance?
Relevance based on the customer’s indicated preferences.
What is Cognitive Relevance?
Based on the information needs of the customers.
What is Activity Relevance?
Based on the activities from the customers, like making a purchase.
What is Physical Relevance?
Relevance based on anything that isn’t found online.
What is Location Relevance?
Based on the customer’s geographical location.
What is Temporal Relevance?
Based on time.
What is Rule Based Personalization?
Based on a fixed set of rules.
What is Content Based Personalization?
Based on the history of the user’s interests.
What is Collaborative Filtering?
Similar interests profiles are provided. You like this, but that.
What are Next Best Actions (NBA’s)?
Approaching each customer in a way that maximizes the likelihood of achieving the desired outcome for both parties.
What is Next Best Offer?
Offer that will be the most helpful and appealing to the customer.
What is Next Best Product?
Most logical product for the customer to purchase.
What are Location Based Services?
Tailoring a service so it fits better with the geographical location of the customer.
What is Product Configuration?
Assembling products on internet entirely to your own preferences.
What is Community Based Creation?
Mixture of personalization, co-creation and community shopping.
What is Cross-Selling?
Selling other products or services to existing customers in addition to the items they have already purchased.
What is Upselling?
Selling a more expensive version of the product, paying for an upgrade.
What is Deep Selling?
Selling more of a specific product.
What is Event-Driven Marketing?
At which moments is a product/service offer going to be the most relevant to the customer.
What is Customer Satisfaction?
The extent to which the online provider has met the customer’s expectations or the extent to which the provider’s solution to problems has met the expectations.
What is Customer Bonding?
The extent to which a customer feels an emotional (emotional bonding) and psychological connection with an online provider and the extent to which the customer wants to continue their relationship with provider. This can be based on the beliefs that they will benefit from it (rational bonding).
What is Customer Trust?
Extent to which a customer is confident that in the future, an online provider will act reliably, transparently and with integrity. And promises to act in the customer’s best interest.
What is Customer Loyalty?
Extent to which a customer remains loyal to a provider, even if there are cheaper or better alternatives.
What Factors Influence customer bonding, confidence and loyalty?
- User Experience
- Branding
- Value proposition
- Customer service
- Achievements
- Switching costs
What is Attitudinal Loyalty?
Positive word-of-mouth recommendations.
What is Behavioral Loyalty?
Customers can make a larger amount of purchases or they can decide not to leave.
What is Churn?
Departure of customers.
What are Loyalty Programs?
Programs to strengthen customer loyalty. They have a positive effect on the loyalty, retention and the purchases.
What is Customer Engagement?
This is the investment a customer is willing to make in brand-related cognitive, emotional and behavioral activities during their interactions with a brand.
What is Social Loyalty?
Wanting customers to create and share brand related content.
What is Brand Advocate?
Very satisfied customers who recommend a brand or product without asking for anything in return.
What is Customer Influencer Value?
Value of a customer as an influencer, consists of; word-of-mouth and the value of sharing information with potential other customers.
What is Social Shopping?
Form of online selling that leverages the importance of other’s opinions. Shopping experience where followers can observe and engage in discussions while purchasing products.
What is Customer Referral Value?
The value generated through direct recommendations of the brand to others, initiated by the organization.
What is Customer Knowledge Value?
Value derived from the information customers provide to an organization, this includes feedback, complaints and co-creation programs.
