Chapter 9 - Customer Relationship Management (CRM) Flashcards
Customer relationship management (CRM)
A system that gathers information about customers that can help to build customer loyalty and retain those loyal customers.
Data mining
An analytical process that compiles actionable data on the purchase habits of a firm’s current and potential customers.
Customer-centric
A philosophy under which the company customizes its product and service offerings based on data generated through interactions between the customer and the company.
Learning (CRM)
In a CRM environment, the informal process of collecting customer data through customer comments and feedback on product or service performance.
Knowledge management
The process by which learned information from customers is centralized and shared for the purpose of enhancing the relationship between customers and the organization.
Empowerment
Delegation of authority to solve customers’ problems quickly - usually by the first person who learns of the customer’s problem.
Interaction
The point at which a customer and a company representative exchange information and develop learning relationships.
Touch points
All possible areas of a business where customers have contact with that business.
Point-of-sale interactions
Communications between customers and organizations that occur at the point of sale, usually in a store.
Data warehouse
A central repository of data from various functional areas of the organization that are stored and inventoried on a centralized computer system so that the information can be shared across all function departments of the business.
Database
An organized system of data collection that allows for assessment, usually by computer.
Response list
A customer list that includes the names and addresses of individuals who have responded to an offer of some kind, such as by mail, telephone, direct-response television, product rebates, contests, or sweepstakes, or billing inserts.
Compiled lists
Customer lists that are developed by gathering names and addresses gleaned from telephone directories and membership rosters, sometimes enhanced with information from public records, such as census data, auto registrations, birth announcements, business start-ups, or bankruptcies.
Recency-frequency-monetary (RFM) analysis
The analysis of customer activity by recency, frequency, and monetary value.
Lifetime value (LTV) analysis
A data manipulation technique that projects the future value of the customer over a period of years by using the assumption that marketing to repeat customers is more profitable than marketing to first-time buyers.
