Chapter 11

Question 1

Customer Relationship Management

Answer 1

1. Collecting customer data
2. Analyzing customer data
3. Developing CRM process

Question 2

What is the first step of CRM Process?

Answer 2

Collecting Customer Data

Question 3

CRM Process

Answer 3

1) Collecting Customer Data
2) Analyzing Customer Data & Identifying Target Customers
3) Developing CRM Programs
4) Implementing CRM Programs

Question 4

Market Basket Analysis

Answer 4

Analyze the composition of the customer’s market basket

Question 5

Lifetime customer Value

Answer 5

The expected contribution from the customer to the retailer’s profit

Question 6

Customer Pyramid PLATINUM

Answer 6

Steps:
Best
Most loyal
Least price sensitive

Question 7

Customer Pyramid GOLD

Answer 7

Steps:
Next best
Not as loyal

Question 8

Customer Pyramid IRON

Answer 8

Steps:

Doesn’t deserve much special attention

Question 9

Customer Pyramid LEAD

Answer 9

Steps:
Demands attention but doesn’t buy much from the retailer

May have negative value

Question 10

Customer Alchemy

Answer 10

Converting iron and
gold customers into
Platinum customers