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MKT 445
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Data Marketing
Identify & analyze customer population
Group based on similariies
recommend separate marketing campaigns for diff groups
CRM
Database marketing at customer level
Strong company-to-customer relationships
Capture data & interact simultaneously
Customer Value
economic value customer to firm
contribution margin or net profit
Benefits of Customer Value
Decrease cost
Max revenue
Improve profit & ROI
Acquisition & retention of profitable customers
Reactivation of dormant customers
CRM Functional level
Sales force automation in sales function
Develop campaign mgmt in mkt function
Customer-facing Level
Single view of customer
Distribute customer intelligence
Strategy level
Free CRM from tech underpinnings
Process to implement customer centricity & build shareholder value
Knowledge about customers affects entire org
Step developing CRM
1. gain enterprise-wide commitment
2. Build a CRM project team
3. Analyze business requirements
4. Define the CRM strategy
ROI
($in - $out)/$out
Hard determining total benefits and total costs
In-house Advantages
Tailor-made
Develop internal resources and skills
Avoid dependence on vendors
In-house disadvantages
Most Expensive option
Difficult to attract & retain skill
Longer time commitment
Outsourcing Advantages
Lower upfront cost
Pay-as-you-go option
Outsourcing Disadvantages
Contact outsourcing company for every new requirement & pay for developments
Outsourcing business goes out of business
Buy License Advantages
Proven record of success
IT concept & developments implemented with help of CRM vendor
Buy License Disadvantages
Expensive- initial fees & license cost
High consulting fees
Integration with existing apps usually tough, expensive and time consuming
Cloud advantages
Upfront costs lower
Scalable
Implement by module
Cloud disadvantages
On-going per user fees can be high
Data security
CRM benefits
deliver offers, generate orders, &respond to customers
Odds Against
x to y
P= y/(y+x)
Sales Force Automation
Efficiently and effectively manage buyer-seller relationships
Any tech applied to sales situation
Efficientcy allows salespeople to reallocate their time
Build long-lasting relationships
Key Acct Mgmt
Allocate right activities to right customers
1. select accts
2. design elements
3. advance
Social CRM concerns
Difficult to track content
Consumers have the power
Firms cannot control content
Social CRM priority needs
need to improve effectiveness
need to improve integration
pressure to report quantified outcomes
Social CRM Strategies
inserting into peer-to-peer conversations
Monitoring & adapting
defining mutual purpose- incentives and benefits
Successful participation
Click Thru Rate (CTR)
V/I
Transaction Conversion Rate (TCR)
P/V
Take Rate (TR)
P/I
Bounce Rate
E1/V
Exit Rate
Ep/Vp
Pay Per Click
Cost per click
Pay Per view
cost per mil... divide by 1000?
Margin
net profit on purchase
Not including mkting $
Total Margin
M*P
Ad Spend (S)
total paid
Return on Ad Spend (ROAS)
TM-S/S
Word of Mouth (WOM)
V + referalls/ v
Ad Rank
max bid * quality score
Actual cost
(competitior rank/quality score) + .01
Customer Database
Contact info
Demographic
Psychographic
Transactional
Prospect Database
Same as customer but not as much info because they aren't a customer yet
Cluster Database
Info about small clusters of ppl
geographic
associations
lifestyles
Enhancement Database
used to find specific info on a contact
can be purchased
Passive vs active
passive not for strategic mkt
Active for strategic mkt
Householding
multiple contacts have same address... husband/wife
Matchcoding
taking elements of the name & address to develop a unique identifier
Internal Privacy Concerns
collection
control
awareness
errors
improper access
unauthorized secondary use
External Privacy Concerns
Internet
tech
public media
government
Privacy Responses
Refusal
Misrepresentation
Removal
word-of-mouth
complaining to companies & third parties
Privacy consequences
loss o trust & brand integrity
Decreased sales
decrease in data
increased costs
ethical dilemma
Retention Rate
M1/M0
Defection Rate (DR)
1-RRt
Survival Rate (SR)
Mt/M0
Life Time Value (LTVt)
(Mt*Pt)/(1+i)^t
Customer LTV
Mt*Pt*(1+I)^t
Author
belanger
ID
263589
Card Set
MKT 445
Description
ISU CRM
Updated
2014-02-24T02:39:58Z
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