Week 12 Flashcards
customer relationship management (CRM)
overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
three key interactions
- customer acquisition
- customer retention
- customer reacquisition
customer experience management (CEM)
managing customer interactions (touch points) to build brand equity and improve long-term profitability
three key touchpoints:
- human (sales staff or a call centre)
- interactive (websites, e-mail, social media)
- static (radio or newspaper ads)
cultural changes
a more important component is the organizational culture and support from top management
social media and CRM
social media provides an excellent platform for the consumer voice and a great resoruce for marketers
customer ACQUISITION and retention
examine the profiles of the most-popular customers and use characteristics to find prospective customers
customer acquisition and RETENTION
once establisehed, CRM shifts to maintaining profitable customer relationships
customer acquisition and retention
by choosing the right customer, nurturing the right customer, and allocating resources to the right customer, profitability can be further enhanced
customer lifetime value
value of a customer if that customer remains loyal to the firm over the customer’s lifetime
share of wallet
the percentage of a customer’s purchases that a company has in a specific product category
80 20 rule (pareto’s rule)
80% of a brand’s sales come from 20% of its customers
data mining
process of analyzing customer patterns and insights to make better decisions
data warehouse
central repository of data
customer reacquistion (deletion)
losing a customer means losing the entire future stream of purchases, very often due to poor customer service
