Customer Relationship Management (CRM) and Email Marketing

Question 1

Customer relationship management (CRM)

Answer 1

strategic management of relationships with customers involving appropriate use of technology

Question 2

Customer lifetime value (CLV)

Answer 2

cost of acquiring, retaining, and servicing customers to make a calculated decision on marketing costs to customers

need 3 years’ worth of data for accuracy

Question 3

Developing CRM

Answer 3

Peppers and Rogers model of CRM, driving success of CRM - identify, differentiate, interact, and customise

helps to personalise messages and segment customers

Question 4

CRM systems

Answer 4

Recency – identify customers who bought most recently
Frequency – identify customers who purchase most/least often
Monetary value – identify customers who spend the most/least
+ latency – time between customer activities

Question 5

CRM and data

Answer 5

Personal – B2C (contact details, age), B2B (business size, industry)
Transaction – record of purchases (size, quantities, date)
Communication – record of particular customer segments that have been targeted by campaigns and their responses
Use web analytics and social media

Question 6

Benefits of CRM

Answer 6

Improved marketing ROI
Customised products and services
Empowered sales management
Accurate sales forecasting
Increased customer satisfaction and retention

Question 7

Problems with CRM

Answer 7

Implementation and maintenance of CRM systems
Dark side of CRM entail favouritism, differential treatment of customers
Collection of customer data adheres to the GDPR regulations

Question 8

Email marketing

Answer 8

reputation of spam (unsolicited communication messages), is a direct form of communication

Question 9

Inbound email marketing

Answer 9

emails from customers manages as a form of customer service

Question 10

Outbound email marketing

Answer 10

email campaigns to encourage customer trial or purchase as part of CRM (focus on customer retention instead of acquisition)