Customer Relationship Management Overview

Dividing a market based on where people live, like countries, regions, or cities.

Dividing a market based on characteristics of people, like age, gender, income, or education.

Dividing a market based on how people behave as customers, like purchase frequency, amount, or loyalty.

Measurable values used to track the effectiveness of marketing efforts and campaigns.

The proportion of a market that a company controls, often expressed as a percentage.

The rate at which new customers are acquired.

The amount spent to acquire one new customer.

The length of time a customer remains engaged with a product or service.

A metric that measures the percentage of returning customers in a specific period.

The percentage of customers who choose not to return and do not do business with the company again.

The individual customer's spending on a specific company compared to their total expenditure on similar products within a given time period.

A classification system that assigns a code to customers based on their recency, frequency, and monetary value.

How recently a customer made a purchase with the company.

How frequently a customer purchases from the company within a specified period.

The average amount a customer spends per transaction with the company.

Identifying the best customers based on their Recency, Frequency, and Monetary value.

The total profit a company expects to gain from a single customer throughout their entire relationship with the company.

The percentage of customers who stay with a company from one period to the next.

The cost of acquiring a new customer, including marketing, sales, and other related expenses.

The cumulative profit generated by a customer over their entire relationship with a company.

The total value of all customers to a company, calculated by adding up the CLV of each customer.

The practice of allocating resources based on customer value and understanding their needs to maximize long-term profitability.

Identifying and grouping customers based on shared characteristics or behaviors to allow for more targeted and effective marketing efforts.

The process of strategically allocating marketing resources to different customer segments based on their potential value and profitability.

Products with high market share in a high-growth market. They generate significant profits and require investment to maintain their leadership.

Products with low market share in a high-growth market. They have potential but require significant investment to grow market share.

Products with high market share in a low-growth market. They generate consistent profits but offer limited growth potential.

Products with low market share in a low-growth market. They generate minimal profits and have limited growth potential.

Strategies aimed at retaining existing customers and building stronger relationships with them. They focus on increasing customer loyalty and reducing churn.

Strategies aimed at acquiring new customers and expanding the customer base. They involve attracting and converting new customers.

A strategy that encourages customers to buy more products or services. This can be achieved through cross-selling (offering related products) or up-selling (offering upgrades).

Tailoring product, pricing, promotion, and distribution to meet the specific needs of different customer groups.

Making products accessible across various online and offline channels to cater to diverse customer preferences.

Building customer loyalty through programs and incentives to improve satisfaction and create lasting relationships.

Creating emotional connections with customers to build a bond beyond simple transactions or rational reasons.

Loyalty programs aim to create rewarding experiences for customers, fostering both their desire to return (attitudinal loyalty) and their actual repeat business (behavioral loyalty).

The satisfaction-profit-chain (SPC) suggests that focusing on individual customer satisfaction is crucial for driving profits. This means understanding and addressing each customer's needs, rather than relying on general trends.

Personalization is the process of tailoring products, services, communication, and web experiences to individual customer preferences, behaviors, and data. This makes customer interactions more interactive and convenient by providing them with what they want.

Value alignment involves prioritizing high-value customers and serving them in the best way possible. This means strategically allocating resources to cater to segments with the highest profit potential.

Effectiveness profits, or quality profits, are generated through better understanding and serving customer preferences. This allows for sustainable value creation through personalized products and services, enhancing customer satisfaction and loyalty.

Efficiency profits are achieved by increasing customer basket size, purchase frequency, and share of wallet. Loyalty programs can reduce price sensitivity by creating a sense of value and loyalty, leading to higher profits.

Informational benefits offer access to exclusive content and insights, providing value beyond convenience features. It's about delivering valuable information that customers find helpful and engaging.