24 Questions
What is the goal of customer relationship management?
Identifying profitable customers and building customer loyalty
What are the three stages in the CRM cycle?
Marketing research, business development, and customer feedback
What type of information can companies collect through CRM?
Information on recent transactions, customer satisfaction surveys, etc.
What does CRM involve working with?
Employees and the external customer
What is a common criticism of CRM programs according to the text?
They focus too much on transactions and not on other aspects of the customer’s life.
What is one of the applications of CRM databases mentioned in the text?
Customizing offerings and cross-selling other products and services.
What is identified as a potential concern regarding the future of CRM?
Time needed to input data and manage the information
What can be done with transaction and purchase data from CRM databases, according to the text?
Segmenting and modifying messages to enhance marketing effectiveness.
What is highlighted as an issue related to privacy concerns and CRM?
Consumers' reactions to the growing use of databases
What is mentioned as an aspect of the future of CRM?
Continued use of the newest and best technologies
What does data mining help identify, according to the text?
The most profitable customers and prospects
What is one of the applications of CRM databases related to marketing, as mentioned in the text?
Designing targeted marketing to enhance effectiveness
What is highlighted as an expectation of consumers regarding their interactions and buying-related experiences?
Wanting to interact anywhere anytime and expecting all interactions to be easy
What is mentioned as a concern related to privacy and CRM in the text?
Diminished trust if the consumer feels the knowledge gained from database information is being used inappropriately
What is mentioned as a potential benefit of CRM databases according to the text?
Enhancing customer service
What is mentioned as a potential issue related to the future of CRM?
Consumers expectation of their decisions and buying-related experiences have risen
What are the three stages involved in the CRM cycle?
Marketing research, business development, and customer feedback
What is the focus of business development in the CRM cycle?
Identifying customer relationships, capturing relevant data, and data mining
What does data mining help in discovering?
Anomalies, patterns, correlations, and trends
What does identifying customer relationships involve in the CRM cycle?
Customizing products and services, focusing on customer satisfaction, and empowering employees
What are the touchpoints involved in capturing customer data in the CRM cycle?
QR codes, emails, customer service calls, registrations, and web-based interactions
What is the purpose of using CRM to identify high-profit and high-potential customers?
To analyze and interpret the data to develop customer profiles
What does RFM analysis help identify in the CRM cycle?
Customers who have purchased recently and often and have spent considerable money
Why is customer feedback considered essential in CRM?
To maintain long-term relationships
Study Notes
Building Customer Loyalty and Retaining Valued Customers
- The CRM cycle involves three stages: marketing research, business development, and customer feedback.
- Marketing research involves creating offerings based on market research to develop a holistic CRM system.
- Business development focuses on identifying customer relationships, capturing relevant data on interactions, and data mining to answer specific questions and make data-driven decisions.
- Data mining helps in discovering anomalies, patterns, correlations, and trends, and answers questions related to market segmentation, profitability, online retail, asset management, and cross-selling.
- Confounding variables can simultaneously cause predictor/independent variables and dependent variables.
- Identifying customer relationships involves customizing products and services based on gathered data, focusing on customer satisfaction and retention, and an internal management philosophy that empowers employees to negotiate mutually satisfying commitments with customers.
- Understanding interactions of the current customer base involves capturing customer data through touchpoints like QR codes, emails, customer service calls, registrations, and web-based interactions.
- Capturing customer data involves collecting and integrating data from store visits, website visits, phone conversations, and wireless communications, and using technology to manage the data.
- Companies need to use CRM to identify high-profit and high-potential customers, and analyze and interpret the data to develop customer profiles.
- Data mining involves searching the data warehouse, capturing relevant data, categorizing, developing customer profiles, and analyzing RFM (Recency, Frequency, and Monetary) data for customer segmentation and LTV (Lifetime Value) analysis.
- RFM analysis helps identify customers who have purchased recently and often and have spent considerable money, and LTV analysis projects the future value of customers.
- Customer feedback is essential to maintain long-term relationships, and overreliance on technology and data can result in losing sight of this goal.
Test your knowledge of customer relationship management (CRM) and customer retention with this quiz. Explore topics such as marketing research, business development, data mining, customer relationships, customer data capture, and the importance of customer feedback in building loyalty.
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