Exam 21: Customer Relationship Management (CRM)

A basic assumption in any lifetime value calculation is that marketing to repeat customers is more profitable than marketing to first-time buyers.

Which type of list includes names and addresses of individuals who have responded to an offer of some kind?

Los Angeles Sparks The WMBA's Los Angeles Sparks is an example of a sports franchise adopting a CRM approach to grow their fan base. The Sparks CRM system, provided by software vendor "Smart Button" manages all email promotions sent to fans. Additionally, the sparks online fan site keeps fans informed of upcoming games, practices open to the public, team events, and more. The Sparks also instituted their new Home Court Advantage program that awards season ticket holders points for each seat they purchased for the season, that ticket holders can give to others. The ticket holders can actually earn extra points by telling Sparks at ticket renewal time who's getting the seats. At the end of the season, the top three point-givers receive cash prizes. The Sparks organization is gathering information on the ticket holder as well as the people that attend games with the free tickets. As a result, the Sparks have seen a sharp rise in late-season ticket sales this year. -Refer to the Los Angeles Sparks.Suppose that the Sparks management sees six categories of fans at their games.They feel some people at Sparks games generally fall within one of the following six groups: 1)general sports fans,2)basketball fans,3)Sparks fans,4)general fans of women's sports,5)fans of opposing teams,and 6)those seeking entertainment.Dividing customer groups down in this manner is termed:

In the RFM analysis model,the "M" stands for:

At its most fundamental level,a CRM approach is no more than:

_____ interactions occur when customers buy products in a store.

Apple,Inc.has stores,a Web site,and a toll-free phone number where consumers can provide valuable information to the company in developing a CRM system. All these possible areas of the company where consumers can communicate with the business are called:

According to the CEO of Allied Office Products,"We're a head-count business: I know that if you have a 60-person office,you should buy $300 worth of basic office supplies-paper,pens,staples-from us with each order,but if that's all we get,we stagnate.For us to grow,we have to convince the customer,who already likes our products and service,to buy more than just basic supplies; we have to increase the order by 10,20,or 30 times." Allied's salespeople are trained to push the company's less traditional,higher-margin lines such as coffee and refreshments,printing and forms management,and office furniture.Allied's salespeople are engaging in:

Communications between customers and organizations that occur in stores or at information kiosks are called:

A company that has a(n)_____ customizes its product offerings based on data generated through interaction between the customer and the company.

The Old Westbury College Foundation raised $80,000 at its "A Taste of Long Island," a gala dinner where all proceeds went to support scholarship funds and educational programs at SUNY College at Old Westbury.Attendees were people who had contributed to the scholarship program previously and were reached through a:

A(n)_____ is the point at which a customer and a company representative exchange information and develop learning relationships.

Hudson's Bay Company in Canada operates The Bay,Zellers,Home Outfitters,and hbc.com.At each of its stores and its Web site,it gives HBC Rewards that enable members to earn points,which can be redeemed in the HBC Rewards catalog for various items,including travel,leisure and entertainment items,Air Miles reward miles,or Bay and Zellers gift certificates.To use the system,customers have to provide their HBC card number.This reward program enables Hudson's Bay to engage in _____ interactions with its customers.

Customer-centric is an internal management philosophy similar to:

Describe the actions of a company that is referred to as having a customer-centric focus.

In a CRM environment,_____ is defined as the informal process of collecting customer information through customer contacts and feedback on product and service performance.

Wal-Mart captures point-of-sale transactions from thousands of stores in several countries and continuously transmits these data to its massive data warehouse.Wal-Mart allows more than 3,500 suppliers to access data on their products and perform data analyses.These suppliers use the data to identify customer buying patterns at the store level.They use this information to manage local store inventory and identify new merchandising opportunities.Both Wal-Mart and its suppliers are engaged in:

Empowerment in a CRM environment is normally a process of collecting customer information through customers' feedback on products.

The process of centralizing data in a CRM system is sometimes referred to as the interpolation of external and internal touch points.

Outdoor gear retailer Recreational Equipment,Inc.(REI)in Washington collects a vast amount of data through its Web site,direct mailings,and retail stores.When REI considers new store locations,it examines order data to find places with high concentrations of customers buying online and through the company's catalogs.REI would be using _____ to identify potential store locations.