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Questions and Answers
What is the ultimate outcome of CRM?
What is the ultimate outcome of CRM?
What is the outcome of a successful customer-brand relationship?
What is the outcome of a successful customer-brand relationship?
What is customer loyalty?
What is customer loyalty?
What is the cost of recruiting a new customer compared to keeping a current one?
What is the cost of recruiting a new customer compared to keeping a current one?
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What is the outcome of improved customer loyalty?
What is the outcome of improved customer loyalty?
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What is a characteristic of a successful customer-brand relationship?
What is a characteristic of a successful customer-brand relationship?
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What percentage of customers do companies typically lose each year?
What percentage of customers do companies typically lose each year?
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What can a 5% reduction in customer defection rate lead to?
What can a 5% reduction in customer defection rate lead to?
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What is the result of a successful customer-brand relationship on competition?
What is the result of a successful customer-brand relationship on competition?
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How much more does it cost to attract a new customer compared to keeping an existing one?
How much more does it cost to attract a new customer compared to keeping an existing one?
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What is the outcome of a customer-brand relationship on profitability?
What is the outcome of a customer-brand relationship on profitability?
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What is the ultimate goal of CRM in terms of customer loyalty?
What is the ultimate goal of CRM in terms of customer loyalty?
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What percentage of customers do companies typically retain each year?
What percentage of customers do companies typically retain each year?
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What is the benefit of reducing customer defection?
What is the benefit of reducing customer defection?
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What is the cost of keeping a current customer compared to recruiting a new one?
What is the cost of keeping a current customer compared to recruiting a new one?
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Why is customer retention important?
Why is customer retention important?
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What can a company do to reduce customer defection?
What can a company do to reduce customer defection?
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What is the potential increase in profits from reducing customer defection?
What is the potential increase in profits from reducing customer defection?
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What is the main reason why profit rate increases over the life of retained customers?
What is the main reason why profit rate increases over the life of retained customers?
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What is the outcome of customer loyalty in terms of profit?
What is the outcome of customer loyalty in terms of profit?
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What is the type of loyalty that focuses on a customer's intentions and attitudes?
What is the type of loyalty that focuses on a customer's intentions and attitudes?
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What is the type of loyalty that involves a customer's repeat business and loyalty actions?
What is the type of loyalty that involves a customer's repeat business and loyalty actions?
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What is the type of loyalty that focuses on a customer's perception and beliefs?
What is the type of loyalty that focuses on a customer's perception and beliefs?
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What is the main advantage of customer retention in terms of profit?
What is the main advantage of customer retention in terms of profit?
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What is the outcome of customer loyalty in terms of customer behaviour?
What is the outcome of customer loyalty in terms of customer behaviour?
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What is the classification of customer loyalty into three types?
What is the classification of customer loyalty into three types?
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Study Notes
Successful CRM
- Profitability is the ultimate outcome of CRM, driven by improved sales growth and revenue, and improved customer loyalty.
Successful CRM - Intimate Relationships
- A close, positive, and two-sided relationship between a customer and a brand can protect the brand from competitive actions.
- This relationship can lead to long-term competitive advantage and prevent customers from switching to competitors.
- The relationship has a positive effect on profitability.
Loyalty
- Loyalty is a deeply held commitment to re-buy or re-patronize a shop in the future despite situational influences and marketing efforts.
- Loyalty programs can increase profits due to increased purchases, referrals, price premiums, and reduced operating costs.
The Facts about Loyalty
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- Profit rate increases over the life of retained customers because of increased purchases, referrals, price premiums, and reduced operating costs.
Outcomes of Loyalty
- Customer loyalty can be classified into three types: behavioral, attitudinal, and cognitive loyalty.
The Facts about Loyalty
- Attracting new customers costs 5 times more than keeping current customers.
- On average, a company loses 10% of its customers each year.
- A 5% reduction in customer defection rate can increase profits by 35% to 95% depending on the industry.
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Description
This quiz covers the features and outcomes of successful Customer Relationship Management (CRM), customer loyalty, and designing loyalty programs. It also explains the facts about loyalty and the outcomes of customer loyalty.
