Chapter 14 Flashcards
define customer relationship management
overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
- it considers the purchase decision from the pov of the business and requires support from the company’s top management
What 3 interactions with customers are engaged with cusomter relationship management
- customer acquisition
- customer retention
- customer reacquisition
customer experience management
Managing customer interactions with the goal of increasing satisfaction and loyalty.
- focuses on customer interactions or touch points
once Customer relationships are established, CRM shifts to doing what
to maintaining profitable customer relationships
one way to retain customers is through
loyalty programs - Programs specifically designed for customer retention.
Pareto’s rule
The concept that 80 percent of a brand’s sales come from 20 percent of its customers.
–> so heavy customers that are spending more than light customers. Take special care of the 20 percent by offering them better rewards than the remaining 80 percent
Database marketing
The use of databases to customize communications to customers and potential customers for the purpose of promoting a product or service.
data mining
efficient way to sort through large amounts of data to find relationships between variables
- process of analyzing customer patterns and insights to make better marketing decisions
- by spotting trends and relationships among the reams of information, data mining can help specifically target customer segments to meet their needs
customer lifetime value
focus on the value of a customer when that customer remains loyal to the firm over the customer’s lifetime
What is the first step of customer recovery
To find the customer who is in jeopardy of being lost to the company - the longer customers stay away from a business, the less likely they are to return
