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A concise overview of key concepts and definitions related to customer relationship management (crm). It covers topics such as crm functions, benefits, software capabilities, and challenges. It also explains the customer life cycle, customer lifetime value (clv), customer equity, and the role of marketing in crm. The document further discusses customer satisfaction strategies, crm objectives, and information practice principles, offering a foundational understanding of crm principles and practices. It is useful for students and professionals seeking to grasp the fundamentals of crm and its application in business.
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CRM (customer relationship mgmt) - correct answer combination of policies, processes and strategies that unify customer interaction and provide a mechanisms for tracking customer information leads - correct answer information about a potential customer prospects - correct answer a qualified and interested potential customer CRM functions - correct answer capture internal data, provide business users with customer data, conduct business analysis, deliver tailored marketing mix Benefits CRM - correct answer unified customer interactions, covert leads to customers, provide data for marketing and sales insights (operational, analytical and collaborative) CRM software capabilities - correct answer track variety of customer interactions, analysis tools, capture data across customer life cycle customer life cycle - correct answer steps in customer relationship with company from initial contact to loyalty;
Challenges CRM - correct answer concerns about privacy, some customers can be ignored, system must be integrated into normal workflows and compatible with existing systems Customer life cycle steps - correct answer reach, acquisition, conversion, retention, loyalty/advocacy Reach - correct answer getting a prospective customers attention acquisition - correct answer brining a prospective customer into a sphere of influence conversion - correct answer turning a prospect into a paying customer retention - correct answer engaging an existing customer to keep them loyalty and advocacy - correct answer turning a customer into an advocate for the company CLV (customer lifetime value) - correct answer total profit a company expects to gain from a customer throughout the relationship - financial metric
customer equity formula - correct answer total of all expected purchases of all a company's customers - cost of acquiring and retaining those customers higher Customer equity - correct answer more future revenues in the lifetime of a company's customers (more valuable) customer equity drivers - correct answer value equity, brand equity, retention equity value equity - correct answer how the customer assesses the value of the product or service provided by the company brand equity - correct answer how the customer assesses the value of the brand above its objective value retention equity - correct answer tendency of the customer to stick with the brand (even when its priced higher than an otherwise equal product) influence customer equity - correct answer improving customer services, the value or desirability of the brand, trust of the customer toward the brand
role of marketing - correct answer identify customers, satisfy customers, retain customers customer satisfaction - correct answer a measure of how a product meets/exceeds customer expectations customer satisfaction strategies - correct answer offering customers warranties and guarantees, empower customer-facing personnel, establish appropriate expectations CRM objective - correct answer seeks to increases customer satisfaction, retain customers and increase loyalty throughout customer life cycle permission marketing - correct answer expectation that marketers will ask for permission to sell or offer buyers marketing messages non-disclosure agreement - correct answer details what information cannot be disclosed about another company information practice principles - correct answer notice, choice, access, security