practice for final
Terms in this set (65)
involves managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and an organization's profitability
Customer perceived value
"what you get is what you give"
Get: perceived benefits
Give: perceived sacrifice
group of people with different characteristics, demographics and needs.
provide guidelines for the many choices to be made at the operational level and for the vast operational measures that could be implemented
design processes at the interface between the company and customer. Support customer experiences and the development and nurturing of individual customer relationships
comprise the customer's behavioral cognitive and emotional responses to the company's configuration of functional and emotional "estimuli" or "clues" in the interaction process. The customer experience becomes a manifiesto of the interaction
the level of a peron's felt state resulting from comparing a company's offering perceived performance in relation to the person's expectations
loyalty is defines as a deeply held commitment to rebuy a preferred product or service in the future despite the situational influences and marketing efforts.
a response of an individual or group to an action. relevant CRM behavior: Churn, buying decision, repurchase
have a big impact and influence on customer perceived value. E.g referrals
A problem-solving strategy in which you continually evaluate the difference between your current state and your goal, and consider how to use your resources to reduce the difference.
means-end analysis evolves around in 3 aspects
values/goals, emotional consequences and functionality, and sttributes
Customer Satisfaction VS customer perceived value
Satisfaction is cognitiv-affective comparison between pre purchase and post purchase evaluation of an offer. Perceived value is a cognitiv-affective comparison between benefit/sacrifice ratio, relevant in all phases of the buying or relationship cycle.
help observe and analyze customer's preferences, behaviours and interests.
is important for any sucessful CRM approach because it drives customer satisfaction and loyalty
How CPV is measured?
By different techniques including observation and questioning
Types of customer value assessments are
Monetary performance criteria, monetary and pre- monetary criteria, assessment base on past performance, predictive assessment.
base on a multi period evaluation of a customer's value to the firm. describes the net present value of the stream of future profits expected over the customer's lifetime purchases
by knowing the CLV one can
focus on most valuable customers, neglect less valuables, measure efficiency of past CRM/marketing campaigns, assess efficiency, asses customer equity to the company
recency: date of last purchase, frequency: frequency of purchase and monetary: total revenue in a defined time
Strategic CRM purposes
determination of primary target groups, customer segment-specific target definition, development of customer segment strategies
Dimensions of target operationalisation
aggregation level, reference basis, measurament criteria
Phase related strategies
customer acquisition, retention, recovery and termination
Customer Portfolio strategies
An investment approach in which an investor uses a variety of forecasting and assumption techniques to determine which securities to purchase in order to achieve a high return.
Customer retention target
consolidate customer relationships by increasing purchase frequency or increasing customer share. Increasing profitability of customer relationships
Customer retention barriers
Danger of "bought" loyalty. Inflated claims from customers. customer over saturation and reactance.
Customer retention orientations
attitudinal loyalty and behavioral loyalty strategies
customer recovery target
stabilize volatile turnover development. Avoid negative word of mouth
customer recovery orientation
factual compensation or persuasion incentives,
symbolic stimulation or persuasion incentives.
characteristics of customer experience
customer involving, memorable, emotional, perceptions of direct or indirect company contact from a customer perspective
Butterflies, true friends, strangers and barnacles
customer termination target
increase profitability, retain company image in the case of undesirable customers, retention of employee motivation.
customer termination orientation
passive withdrawal and active withdrawal
What are barnacles?
low profit potential customers that if share of wallet is low focus on up and cross selling
express the identity or personality of a brand or corporation
development of CRM customer orientations are divided in
traditional marketing, direct marketing or 1:1 marketing
AIM of a CRM campaign
approach the right customers with the right offer, at the right time through the right channel
description of an event for a campaign to define situations or objectives
A campaign is divided in these steps
strategic, operative, implementation, analysis
You need a reference model to execute a CRM process assessment and to align
marketing, sales, and customer service
CRM process architecture closed loop elements are
Invest: to identify customer data and secure data, and to differentiate customers through analysis of profitability and analysis of customers needs and values. Create revenue: interacting and planning interaction with customer. Sustanable revenue: customize, products and services portfolios and learn CRM rules.
The process of identifying and qualifying leads in order to capture new business.
Once relationships starts with customers one can
cross-and upsell, develop relationship with customer, deliver great service, receive customer satisfaction and loyalty
activities and benefits provided by a business to its customers to create goodwill and customer satisfaction
Magic Triangle of CRM
people, processes and technology
An approach to production that emphasizes the elimination of waste in all aspects of production processes
Most growable customers. Keep them to operate in a way that costs the enterprise the less money
most valuable customers, tend to be most loyal.
Below Zero's customers
no matter the effort a company ,makes, will generate less revenue than cost to serve.
The Riemman Thomann Portfolio consist in
The visionary, the strategist, the teamworker, the clerk.
Elements of efficient communications are
technical: perception, persuasive: decision and activating:activation
Four rules of a successful CRM
Define your management needs, compose a project team of users, be prepare for mutual adaptation and leverage the opportunity, decide the tole of the new CRM system
Decision Cycle is divided in:
Needs, research, decide, approach, commit, receive, Use, re use, renew and remember.
All the opportunities which businesses have to connect with customers and reinforce their brand value.
a series of social relationships that links individuals directly to others, and through them indirectly to still more people, a series of social relationships that links individuals directly to others, and through them indirectly to still more people
A strategy to get consumers to share a marketer's message, often through e-mail or online video, in a way that spreads dramatically and quickly
Social network degree centrality
the number of direct ties a firm has in a network, out of the possible direct ties; the more direct ties, the more centrally located the firm is
Social network closeness centrality
actors have the shortest path to all other members of the network
Social network betweenness centrality
captures the role of a "broker" or "bridged" that have most indirect ties and can connect and disconnect large parts
The more cohesive groups the more easily
reach common goals, control sanction its members behavior
Types of surveys
Attributed oriented, incident oriented, laddering and sequential incident laddering technique
Incident oriented surveys are
open story telling. Could be critical or sequential incident.
record functional and emotional consequences- Means end
Ignore, monitor, participate, activate, control
5s of community building
content, context, connectivity, continuity and collaration
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