Chapter 9: Customer Relationship Marketing Flashcards

1
Q

Define Customer Relationship

A

Goal: Maximize the value that is attributed to that customer relationship. Customer Relationships finds ways to sell better, earn profit, and finding ways to interact.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Define Customer Relationship Management (CRM)

A

Interaction with your customers over a long term period, and not just tracking transactions over a short term period

  • More about the relationship you build with customers
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Define Customer Relationship Marketing

A

Acquiring the hardware and software to create a database or system to gather and track customer information

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Define the Customer Relationship Management Cycle

A

Relationship building tool (3 stages). The cycle must be complete to implement measures of customer satisfaction.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Define Stage 1 of the CRM Cycle

A

Requires that companies understand what they have to offer to their customers and the marketing and market research tools that can help them use the 4 P’s.

  • Based off market research
  • Creation of the offering
  • Collecting as much info as possible
  • Research through the 4 P’s
  • The development of the most effective marketing mix
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Define Stage 2 of the CRM Cycle

A

Focuses on the use of technology to systemically identify customers, gather information on them, and store that information

  • Technology tools can now be unleashed to seek out more detailed information on the customer
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Define Data Mining

A

An analytical process that compiles actionable data on the purchase habits of a companies current and potential customers

  • Used to find hidden patterns and relationships in the customer data stored in warehouse
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Define Customer-Centric

A

Customize products and services based on the data gathered through information

  • Focusing on what satisfies
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

The Importance of Interaction

A

The interaction between customers and the organization is the foundation on which a CRM System is built.

  • Can learn about the expectations of their customers
  • Generate and manage knowledge
  • Find out information about customers (their old past)
  • Try and understand preferences, etc.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Define Touch Points

A

All possible areas of a business where customers have contact with that business and data that might be gathered. Data gathered at these touch points provide information that affects points inside the company (extended warranty purchasers, cost control models, etc.)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Define Capture Customer Data

A

The issue is not how much data to collect, but rather what data to collect and how to use it effectively for relationship management

  • Store visits, website visits, phone conversations, etc.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Define Data Warehouse

A

A central repository of data collected by an organization. The core of the data warehouse is the data base; the collection of data built through response and compiled lists

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Define Identifying the Best Customers

A

To be successful, companies need to use CRM to identify those customers that are valued customers (most profitable), high potential, etc.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Define Customer Segmentation

A

Is the process of breaking large groups of customers into smaller groups. This type of analysis generates a profile, or picture, of the customers’ similar demographic, geographic; its focus particularly on the best customers

  • The ability to reasonable predict future customer behaviour gives marketers a significant competitive advantage
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Define Stage 3 of the CRM Cycle

A

Requires that companies look at ways to use the information about customers to retain them in the long term by satisfying their needs.

  • Maintaining long term relationships with customers
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

How can CRM Fail

A

A CRM System must have the ability to move beyond just finding those loyal customers. Companies must leverage the information to build two-sided relationships

  • Focusing too much on transactions and not on other aspects of the customer’s life
  • Relationships cannot be solely about achieving loyalty, and companies need to find ways to retain their customers
17
Q

Define Leveraging Customer Identification

A

Data mining identifies the most profitable customers and prospects. Managers can then design tailored marketing strategies to best appeal to the identified segments

  • Leverage the customer information to facilitate enhanced relationships with customers
  • Design Tailored Marketing Strategies best appeal to the identified Segment
18
Q

Define Campaign Management

A

Refers to developing product or service offers customized for the appropriate customer segment and then pricing and communicating these offerings to enhance customer relationships

19
Q

Define Retaining Loyal Customers

A

Building long-term relationships that are mutually beneficial

  • After a company has identified its best customers, it should make every effort to maintain and increase their loyalty
20
Q

Define Cross Selling other Products and Services

A

Use the database to math product profiles with customer profiles to cross-sell

  • Online companies use product and customer profiling to reveal cross-selling opportunities while a customer is surfing their site
21
Q

Define Targeted Communications

A

Customers can also be segmented into frequent users, moderate users, and heavy users. A segmented communications strategy can then be developed depending on the customer’s segment

22
Q

Define Reinforcing

A

By thanking customers for their purchases and telling customers they are important, marketers can help cement a long-term, profitable relationship (reassurance)

23
Q

Define a Marketing Database

A

Can be used to identify new customers. Because a company using a marketing database already has a profile of its best customers, it can easily use the results of modelling to profile potential customers