exam 1 Flashcards
Methods of enhancing value:
upselling, cross-selling, and KAM
Cross-selling
sell complementary products in the firm’s portfolio to existing customers ex: amazon frequently bought together
KAM ( key account management)
ensure that the firm does not lose its high value customers
Customer acquisition meets two goals:
Replaces customers that leave the firm
•Expands base of customers
What is a Process?
eries of activities and decisions taken in order to achieve a certain end
Four sub-processes of sales CRM
- Prospecting and lead generation
- Prospect qualification
- Lead development
- Closing
Before customer acquisition:
Market segmentation, targeting, product/offer design, branding and positioning, acquisition campaigns, nurturing
Post customer acquisition:
Satisfaction, customer loyalty and retention, customer value capture, upsell and referral programs
Pluses of Marketing Processes
- Efficiency: automate repetitive tasks such as sending emails, tracking web surfing, running campaigns and engaging with customers on social media
- Effectiveness: better leads, better customer experiences, and better value creation
three different levels at which CRM is practiced
- Functional
- Customer-facing
- Strategic
Two factors contribute to customer heterogeneity:
- Relationship Stage
2. Value of customer
three subtopics of SFM
SFA , KAM, Goods to services shift
SFA ( Sales force automation)
information technology applied to a sales situation that is intended to facilitate a repetitive, administrative task and to make it more efficient, especially from the internal perspective of the seller
80/20 principle
Every company has high value customers
three key steps for implementing a successful KAM program
- selection of key accounts
- design elements of KAM program
- Advancement of KAM program
