Exam 5: Creating Customer Value, Satisfaction, and Loyalty

Customer lifetime value (CLV)describes the net present value of the stream of future profits expected over the customer's lifetime purchases.

Phil Langston has just ordered a number of expensive executive gifts that he will be sending as an appreciation token to a select few customers from his client database.In which of the following ways is Mr.Langston most likely using his database

Give an example of a "branded customer experience."

A customer touch point is the time when the customer makes a purchase.

Explain how a company frequency program might work.

There are two determinates of customer-perceived value: total customer benefit and total customer cost.

One-to-one marketing is not for every company.For whom does this style of marketing work best

Most companies have learned that the ________ are often the most profitable because of service expectations and their willingness to pay almost full price.

One key to customer retention is customer satisfaction.

Immediately below the customers in a modern customer-oriented organization chart,we would expect to find the ________ of an organization.

Customer relationship management enables companies to provide excellent real-time customer service through the effective use of _______.

Typically,________ gains the most benefit from introducing a frequency program.

When companies provide rewards to customers who buy frequently and in substantial amounts,this is referred to as ________.

The aim of customer relationship management is to keep the costs of meeting and tracking consumers as low as possible.

Describe the process of database marketing.

The 20-80 rule reflects the idea that ________.

Studies of customer dissatisfaction show that customers are dissatisfied with their purchases about 25% of the time,but only about ________ complain.

Jim is a residential construction contractor.Although one particular realtor provides Jim with a large volume of work,the realtor frequently demands discounts for sending him customers.This realtor is best described as a(n)________ customer.

A profitable customer is a person,household,or company that over time yields a revenue stream that exceeds by an acceptable amount the company's cost stream of attracting,selling,and servicing the customer.

A 5% reduction in the customer defection rate can increase profits by 25% to 85%,depending on the industry.Explain how this is so.