L2

Question 1

Goal for CRM (customer relationship management)

Answer 1

• Start customer relationship
• Grow value
• Defend profitable relationships
Reduce unprofitable relationships

Question 2

Lifecycle of customer relationship+ what is marketing?

Answer 2

Acquisition
Growth/retention
Attrition/win-back

Marketing is trying to influence the lifecycle

Question 3

Acquisition - how to find new customers (who, chanell, strategy)

Answer 3

All inclusive or selective
Through existing customer, companies or tageted online adversiting
New products, increase market investment, target groups, discount and incentives, influecer, content creation

Question 4

Acquisition - metrics

Answer 4

Respond rate
Conversion rate (action because of interaction)
Cost of acquisition
Rate of acquistition (time, cost)

Question 5

Retention strategy

Answer 5

Tailor made products/services
Good service quality
Loyalty programs
Product/service expansion
Cross-selling (selling additional products) /up-selling (chose additional effects, functions)

Question 6

Retention metrics

Answer 6

RFM (how recent, how frequent, monetary -how much money was spent)
Relationship length
Share of wallet (how big part of the wallet the company contains)

Question 7

Loyalty - two types

Answer 7

Behavioral (share of wallet, RFM)
Attitudinal (feel and think, commitment)
Highest profit potential if a customer have both

Question 8

Goals with loyalty programs

Answer 8

• Increase share of wallet
• Access to information on costumer
• Higher average sales (cross and u selling)
• Easier to targer special customer segments

Question 9

Attrition/win-back - reason for winning back

Answer 9

Customer has demonstrated need for product/service before
Customer know the company
Can get information from customer why they left

Question 10

Attrition/win-back 3 types of prospects

Answer 10

3 types of prospects

1. Best prospects because they recommended and did not complain
2. Middle because they left only because of price
3. Worst because they left because of poor service/quality or because of price and service

Question 11

Divestment - reason

Answer 11

Bad profitability
Too demanding which leaves little time for employees to help other customers
Change of capacity to serve large volumes of customers
Other business strategy

Question 12

Divestment - how?

Answer 12

Higher price
Incentives to leave company (price, customize products for the customers you want to keep)
Cutting-off service

Question 13

Divestment - danger

Answer 13

Give away customers to other companies
Damage relationship, view of company and effect other customers also
Regulations