Customer Relationship Management Flashcards
Define Customer Relationship Management
Building profitable, long-term relationships with customers by delivering superior customer value and satisfaction
What does CRM entail?
Managing detailed information about individual clients and their customer “touch points”
How is CRM done?
Through the use of data mining and warehousing, ie: internal records and external monitoring of social media to see what consumers are saying and complaining about
What is customer-perceived value?
The difference between the prospective customer’s evaluation of all the benefits and costs and the perceived alternatives
What is customer satisfaction?
A person’s feelings of pleasure or disappointment that result from comparing a product or service’s perceived performance (or outcome) to expectations
Why is customer satisfaction beneficial?
It’s important to monitor satisfaction, as high satisfaction can lead to loyalty and delighted customers, who can then become marketing partners.
How is customer satisfaction measured?
Measuring treatment of customers, identifying factors shaping satisfaction, and changing operations and marketing
What is customer lifetime value?
The value of the entire stream of purchases a customer makes over a lifetime of patronage
What is the share of the wallet?
The percentage of a customer’s purchases that a company has in a specific product category
What’s the main objective of CRM?
Acquisition, retention, and reacquisition: companies want to retain their customers by lowering the amortized cost, being less price-sensitive, less inclined to switch, and initiating WOM and referrals. Seek to build trusted relationships with customers.
What is loyalty?
Loyalty is a deeply held commitment to rebuy or patronize a preferred product or service in the future by maximizing the customer’s experience.
What is customer experience management (CEM)?
Managing customer touchpoints (interactions) with the brand
How do we do CEM?
Engaging consumer’s and making the brand prevalent in consumer’s lives through social media, brand communities, and loyalty programs
What are brand communities?
A place where people who have an emotional connection to your brand can connect with each other and with your brand.
What are the aspects of brand communities?
Sense of connection, shared rituals, stories, and traditions that convey meaning and shared responsibility to community members.
