Lecture 1 Flashcards
Share of Wallet
The part that a specific person spends on a brand of it’s relevant budget.
Under the Costumer Concept you want…
- …to make customers loyal to your brand/firm
- …via fulling the needs of the individual customers
- …to be able to select individual customers for the marketing activities
Consumer knowledge
= knowledge about consumers
Types (examples) of consumer knowledge
- Needs of the customer
- Values of the customer
- Satisfaction of the customer
- Length of the relationship
- Characteristics of the customer
- Attitude of the customer
- Commitment of the customer
Two types of customer data
Structured (transactions etc.) vs. unstructured (interactions, WOM)
Customer Concept
the belief that prescribes the unit of analysis every marketing action and reaction to be the individual customer. Taking the individual as starting point for marketing activities/decisions
Customer orientation
Maximizing the value (profitability) of customers
The implementation of the customer concept and focuses on:
- increasing CLV -> V2F, by:
- Trough creating loyalty
- Trough increasing satisfaction
- Trough delivering on customer values
Market orientation
Maximize the value of products and/or services
Relational intelligence
Being aware that customers can have various types of relationships with a company
Every loyal customer profitable?
No!
- not always cost less to serve
- not always willing to pay more
The three outdated pillars of CRM
- Relationships are stand-alone (silo) investments
- They are like loving marriages in which both live happily ever after
- Valuation is easy and linear, accounting for: acquisition, development and retention.
Strategic behavior of consumers
- Adapt purchase behavior based on expectations of future promotions
- Switching without having intentions to remain loyal
Costumer social value
Arises out of the influence consumers have on each other, recommendation, WOM etc.
Interaction response capacity
The degree to which firms offer successive products/services/relationship experiences to each customer with dynamically incorporating feedback
Interaction orientation
A firm’s ability to interact with its individual customers & to take advantage of information obtained from them via previous interactions.
4 components to interaction orientation
- Customer concept
- Interaction response capacity
- Customer empowerment
- Customer value management
Customer value management
The extent to which a firm can define and dynamically measure individual customer value and use it as its guiding metric for resource allocation
Customer empowerment
The extent to which a firm provides it customers:
- Connect with the firm and shape the nature of transactions
- Connect and collaborate with each other by sharing information, praise, criticism, suggestions etc.
If you want to be able to categorize your customers by relational types, you’ll need to….
… gather information that reveals their feelings and expectations.
