Term
| customer relationship management (CRM) |
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Definition
| A comprehensive business model for increasing revenues and profits by focusing on customers. |
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| The level of liking an individual harbors for an offering. |
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| A customers commitment to a company and its products and brands for the long run. |
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| lifetime value of a customer |
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Definition
| The measurement of important business success factors related to long-term relationships with customers. |
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Term
| return on customer investment (ROCI) |
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Definition
| A calculation that estimates the projected financial returns from a customer. It is a useful strategic tool for deciding which customers deserve what levels of investment of various resources. |
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Definition
| The shifting of investment of resources from a less attractive customer to more profitable ones. |
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| The intersection of a selling firm with a customer via a media channel. |
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| A compilation of customer data generated through touchpoints that can be transformed into useful information for marketing management decision making and marketing planning. |
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| A sophisticated analytical approach to using the massive amounts of data accumulated through a firm’s CRM system to develop segments and microsegments of customers either for purposes of market research or development of market segmentation strategies. |
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Term
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Definition
| Direct marketing involving the utilization of the data generated through CRM practices to create lists of customer prospects who are then contacted individually by various means of marketing communication. |
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| The analysis and refinement phase of the CRM process that is based on customer response to the firm’s implementation strategies and programs. |
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| The classic style of consumer marketing in which a firm views all consumers as equal reactors to a firm’s marketing strategies. |
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Definition
| The practice of marketing toward large groups of like-minded customers. |
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Definition
| The practice of marketing that focuses on developing relationships with individuals. |
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Definition
| The formal establishment of a firm’s structure, processes and tools, and managerial knowledge and commitment to support its culture. |
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| An individual’s belief that understanding and satisfying customers, whether internal or external to the organization, is central to the proper execution of his or her job. |
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Term
| relationship-based enterprise |
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Definition
| A firm that strives to facilitate long-term, win-win relationships between buyers and sellers. |
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Term
-Customer Acquisition
-Customer Retention
-Customer Profitability |
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Definition
| Ultimately, CRM has three major objectives: |
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Term
-Customer Satisfaction
-Customer Loyalty
-Lifetime Value of a Customer
-Return On Customer Investment (ROCI) |
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Definition
| OBJECTIVES AND CAPABILITIES OF CRM (4) |
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Term
-Knowledge Discovery
-Market Planning
-Customer Interaction
-Analysis and Refinement |
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Definition
| the process cycle for CRM may be divided into 4 elements |
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Term
-indentify all potential touchpoints
-develop specific objectives for what kind of information can be collected at each touchpoint
-determine how that information will be collected and ultimately integrated into the firm's overall customer database
-develop policies on how the info will be accessed & used |
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Definition
| to maximize a firm's ability to successfully use touchpoints, an ongoing concerted effort must be undertaken to... (4) |
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Term
-Reduced Promotional Costs
-Improved Targeting
-Improved Capability
-Increased Effectiveness
-Increased Sensitivity
-Increased Speed
-Improved Use of the Customer Channel |
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Definition
| Advantages of Customer Marketing (7) |
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Term
-Strong internal partnerships
-All organization members are actively involved in collecting information
-CRM tools are employee- and customer-friendly
-Reporting consists only of data the firm can actually use
-Only as high-tech as necessary |
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Definition
| When considering CRM, the likelihood of a successful implementation increases dramatically when the firm can demonstrate the following characteristics: (5) |
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Term
-Adopting a relationship or partnership business model overall, with mutually shared rewards and risk management.
-Redefining the selling role within the firm to focus on customer business consultation and solutions.
-Increasing formalization of customer analysis processes.
-Taking a proactive leadership role in educating customers about value chain opportunities available by developing a business relationship.
-Focusing on continuous improvement principles stressing customer satisfaction and loyalty. |
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Definition
| at the strategic marketing level, a customer-centric culture includes, but is not limited to these major components (5) |
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