Exam 1 Flashcards
Definition of CRM
is a technology or software solution that tracks data and information about customers to better our service
why is CRM important?
CRM helps companies gain a competitive advantage, deliver growth and profit
what led to the growing recognition of CRM?
the interactive era of the twenty-first century. firms are now receiving constant information about customers
Get, Keep, Grow
Enterprises strive to:
GET a customer
KEEP them for a lifetime
GROW the value of the customer to the enterprise
What is Customer share?
how much your customers are investing in your products/services/solutions
Define Learning relationships
They enable enterprises to develop personable interactions with customers
What is the impact of investing in CRM?
it can lead to increased sales, improved customer satisfaction, and long-term success
What are the elements of relationships?
Mutual
Interaction
Iterative
Ongoing benefit
Define a Mutual Relationship
refers to the two-way nature of a relationship
Define Iterative
builds on oneself, becomes smarter over time
Define Ongoing benefit
changing each party’s behavior towards the next party, to be uniquely different
What is Return on Customer (ROC)?
A metric that tracks how well an enterprise uses customer to create value. Educates on how much earning are gained from customers
The 5 E’s of Customer Relationships
Environment
Expectations
Experience
Emotions
Engagement
What are the different types of Loyalty?
Behavioral
Attitudinal
True
Define Behavioral loyalty
Relies on the actual conduct of a consumer, regardless of attitude of preferences. It is easier to measure than attitudinal loyalty
Define Attitudinal loyalty
Implies that the loyalty of a customer is in their state of mind. The customer carries a positive and preferential attitude towards it
Define True loyalty
Extremely satisfied customers to stay with a company through highs and lows
What is IDIC?
Identify
Differentiate
Interact
Customize
What happens in Identify?
recognizing your customers, by setting up a relationship with individuals of the consumer population
What happens in Differentiate?
knowing how your customers are different from each other
What happens in Interact?
various ways to improve interactions with customers to
What happens in Customize?
adapt its behavior towards a customer based on the individuals wants and needs
What is the importance of trust in relationships?
The more a customer trusts an enterprise, the more likely they will accept its offers and recommendations.
What is Green’s Trust Equation?
Credibility
Reliability
Intimacy
Self-orientation
Define Credibility
the proven truthfulness of a enterprise
Define Reliability
how a customer depends on an enterprise
Define Intimacy
how the enterprise showcases discretion and empathy
Define Self-orientation
the motives of an enterprise
What enhances the elements in the Trust equation?
Credibility: online information
Reliability: being religious on delivering promises
Intimacy: increased sense of safety
Orientation: strategic customer management
What is the impact of visibility online (customer reviews)
Online reviews brings more vulnerability and transparency to an enterprise. The customer’s mindset rules the competitive space
How to craft a sincere apology
Be truly sincere, accept responsibility, articulate what the company has learned
What is Market share?
how many customers in a market are buying your products/services/solutions
Define Switching Costs
the costs a consumer pays as a result of switching brands or products
