Mktg Chp 21

  1. Customer Relationship Management (CRM)
    a company-wide bsiness strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups
  2. Flow Model of CRM System
    • identify customer relationships
    • understand interactions with current customer base
    • ca[ture customer data based on interactions
    • store & integrate customer data using info technology
    • identify best customers
    • leverage customer information
  3. Customer-centric
    a philosophy under which the company customizes its product and service offering based on data generated through interactions between the customer and the company
  4. Learning
    an informal process of collecting customer data through customer comments and feedback on product or service performance
  5. Knowledge Management
    the process by which learned information from customers is centralized and shared in order to enhance the relationship between customers and the organization
  6. Empowerment
    delegation of authority to solve customers' problems quickly - usually by the first person the customer notifies regarding the problem
  7. Interaction
    the point at which a customer and a company representative exchange information and develop learning relationships
  8. Touch Points
    all possible areas of a business where customers communicate with that business
  9. Point-of-sale Interactions
    communications between customers and organizations that occur at the point of sale, normally in a store
  10. Data Warehouse
    a central repository for data from various functional areas of the organization that are stored and inventoried on a centralized computer system so that the information can be shared across all functional departments of the business
  11. Database
    a collection of data, especially one that can be accessed and manipulated by computer software
  12. Response List
    a customer list that includes the names and addresses of individuals who have responded to an offer of some kind, such as by mail, telephone, direct response, tv, product rebates, contests or sweepstakes or billing inserts
  13. Compiled Lists
    a customer list developed by gathering names and addresses from telephone directories and membership rosters, usually enhanced with info from public records, such as census data, auto registration, birth announcements, business start-ups or bankruptcies
  14. Recency-Frequency-Monetary (RFM) Analysis
    identifies those customers most likely to purchase again because they have bought recently, bought frequently, or spent a specified amount of money with the firm
  15. Lifetime Value Analysis (LTV)
    a data manipulation technique that projects the future value of the customer over a period of years using the assumption that marketing to repeat customers is more profitable than marketing to first-time buyers
  16. Benefits of LTV
    • shows marketers how much they can spend to acquire new customers
    • tells the level of spending to retain customers
    • facilitates targeting new customers
  17. Predictive Modeling
    a data manipulation technique in which marketers try to determine, based on some past set of occurrences, what the odds are that some other occurrence, such as a response or purchase, will take place in the future
  18. Campaign Management
    developing product or service offerings customerized for the apropriate customer segment and then pricing and communicating these offerings for the purpose of enhancing customer relationships
Card Set
Mktg Chp 21
Marketing Chp 21