Chapter 8 Customer Relationship Management (CRM) Flashcards
customer relationship management (CRM)
a system that gathers information about customers:
- builds customer loyalty
-retain loyal customers
data mining
an analytical process that:
-collects data on the purchase habits on users
collecting data on consumer behaviour/purchasing habits
customer-centric
company customizes its product or service offering from the data collected through interactions between the company and customer
customizes product from collected data from the interactions between the company and the customer ^^^^
learning (CRM)
in a customer relationship management (CRM) the process of:
-collecting customer data through comments or feedback on their product or service
data collection from feedback on their product^^^
knowledge management
learned information from customers is shared for the purpose of enhancing the relationship between customers and the organization
customer information is shared to improve relationship with them
empowerment
delegation of authority to solve customers problems quickly
*usually the first person who learn of the customers problem
interaction
the point at which a customer and a company representative exchange information and develop learning relationships
where company and customer exchange information
touchpoints
all possible areas of a business where customers have contact with a business
ex) TV ads, salesperson, email etc…
point-of-sale interactions
communications between customers and organizations that occur at the point of sale, usually in store
ex) sales till/register
response list
a customer list that includes the names and addresses of individuals who have responded to an offer of some kind
a list with customer information
ex) mail, telephone, direct-response, television, product rebates, contests etc…
compiled list
customer lists that are developed by gathering names and addresses gleaned from telephone directories and membership rosters sometimes enhanced with information from public records
recency-frequency-monetary (RFM) analysis
the analysis of customer activity by recency, frequency and monetary value
analyzing customer activity by recency, frequency and monetary value
lifetime value (LTV) analysis
a data manipulation technique that:
-predicts the value of the customer over the years
- assumes that marketing to repeating buyers is more profitable that marketing to first-time buyers
prediction of the customers value to the company over time
predictive modelling
a data manipulation technique in which marketers determine the odds of an occurrence from past experiences
prediction technique to determine the odds of a reoccurance
campaign management
developing product or service offerings customized for the appropriate customer segment and pricing and communicating offerings to enhance customer relationships
developing a customized product for the segment and communicating it
