MKT 574: Chapter 5: CRM, Big Data, and Marketing Analytics
Place the elements of the CRM process cycle in the correct order.
1. Knowledge discovery 2. Marketing planning 3. Customer interaction 4. Analysis and refinement
4 V's of Big Data
1. volume: the amount of data produced 2. velocity: the frequency at which data is generated over time and the speed at which it can and should be analyzed and used 3. variety: the different types of data including text, video, images, and audio 4. veracity: the reliability and validity of the data
4 elements of the CRM process cycle
1. knowledge discovery 2. marketing planning 3. customer interaction 4. analysis and refinement
customer relationship management
a comprehensive business model for increasing revenues and profits by focusing on customers
marketing dashboard
a comprehensive system providing managers with up to the minute information necessary to run their operation including data on actual sales versus forecast, progress on marketing plan objectives, distribution channel effectiveness, sales force productivity, brand equity evolution, and whatever metrics and information are uniquely relevant to the role of the marketing manager in a particular organization
A person'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 is called:
a customer mind-set
customer mind set
a persons belief that understanding and satisfying customers, whether internal or external to the organization, is central to the proper execution of his/her job
data mining
a sophisticated analytical approach to using the massive amounts of data accumulated through the CRM system to develop segments and micro-segments of customers for purposes of either market research or development market segmentation and target marketing strategies.
sentiment analysis
a type of analytical method that identifies the general attitude contained within a message through an analysis of its content.
In the ______ phase of CRM, organizational learning occurs based on customer response to implemented strategies and programs.
analysis and refinement
QZB Company experienced a data breach during the holiday gift-giving season. What role can the marketing manager play to help rebuild customer trust?
Proactively communicate the relevant elements of the company's security strategy to ensure that a breach will not occur again
attribution
can be thought of as determining how to give appropriate credit to different elements of the marketing mix through the measurement of their effects
An analytic method that identifies which products or services to recommend based on a determination of how similar they are to those that the customer has preferred in the past is ______.
content filtering
Some commercial entities collect big _______ on customers in order to sell ti to other companies as their primary business model.
data
______ analytics utilizes data to provide summary insights.
descriptive
Two primary goals of any marketing dashboard are _____ insight and _____ foresight.
diagnostic; predictive
What is the phase of the CRM process that uses the output from the knowledge discovery phase?
marketing planning
_____ _____ represents a key use of the output from the knowledge discovery phase.
marketing planning
formalization
means that structure, processes and tools, and managerial knowledge and commitment are formally established in support of the culture
Data from _____ _____ is frequently used to help customers find in store details when shopping.
mobile apps
customer lifetime value (CLV)
one of the most important metrics of CRM - investment in CRM yields more successful long-term relationships with customers, and that these relationships pay handsomely in terms of cost savings, revenue growth, profits, referrals, and other important business success factors.
Recommendation systems, such as content filtering and collaborative filtering, are examples of _____ using marketing analytics.
personalization
The collection of customer information through _____ systems in retail locations is commonly used to determine a customer's relative value.
point of sales (POS)
Collaborative filtering
predicts a customers preferences for products or services based on the observed preferences of customers who are perceived to be similar.
descriptive analytics
utilizes data to provide summary insights
Census data and labor statistics are examples of data collected by:
government agencies
Marketing analytics
include a set of methods facilitated by technology that utilize individual level and market level to identify and communicate meaningful patterns within the data for the purpose of improving marketing-related decisions.
As more smart devices enter the market, and increasing source of structured and unstructured data is being transmitted to companies via _______-_______ devices.
internet-connected
Prescriptive Analytics
involves determining the optimal level of marketing-relevant factors for a specific context by considering how adjusting their level in varying ways will impact different marketing outcomes
Semi-structured data
fits between structured and unstructured data in the sense that it contains some elements of structure that make it easier for machines to understand its organization, but still contains parts that do not possess an appropriate level of structure to make hem readily analyzable by automated means for knowledge creation
When structure, processes and tools, and managerial knowledge and commitment are formally established in support of the culture it is called:
formalization
Interactive touchpoint might include which of the following situations? Select all that apply.
1. A salesperson sells you an upgrade to fix a problem with your cell phone 2. a telemarketer offers you information on a special deal for existing cable customers. 3. A customer service representative helps you follow up on a gift delivery
Pitfalls of marketing metrics
1. Overreliance on "inside-out" measurement 2. too many tactical metrics; not enough strategic insight 3. forgetting to market the dashboard internally
At the strategic marketing level, a customer-centric culture includes, but is not limited to, the following major components
1. adopting a relationship or partnership business model overall, with mutually shared rewards and risk management 2. Redefining the selling role within the firm to focus on customer business consultation and solutions 3. increasing formalization of customer analysis processes 4. taking a proactive leadership role in educating customers about value chain opportunities available by developing a business relationship 5. focusing on continuous improvement principles stressing customer satisfaction and loyalty
Key benefits of a marketing dashboard approach
1. aligns marketing objectives, financial objectives, and firm strategy based on the selected dashboard metrics 2. enhances alignment within the marketing function and also clarifies marketing's relationships with other organizational functions. Cross-functional alignment contributes greatly to a shared spirit for organizational success 3. portrays data in a user-friendly manner. Creates a direct, understandable link between marketing initiatives and financial results 4. fosters a learning organization that values fact-based, logical decision making about allocation of marketing resources to achieve desired organizational results 5. create organizational transparency about marketing's goals, operations, and performance, increasing marketing's credibility and trust by organizational leadership and other areas of the firm
6 big data sources
1. business systems 2. social media platforms 3. internet-connected devices 4. mobile apps 5. commercial entities 6. government entities
Key elements of a great marketing dashboard
1. company goals translated into a set of marketing objectives 2. measurement of financial impact of marketing programs 3. tracking of how marketing assets such as the brand and customer relationships are progressing 4. execution of skills and competencies of the marketing team 5. execution of other business processes necessary to deliver customer value 6. continuous refinement of tools to increase access to and usability of customer insights 7. insight on not only what is happening in the market but also why it is happening 8. a diagnostic for prediction, forecasting, and of course remediation 9. ultimately, enhances return on marketing investment (ROMI)
3 major objectives of CRM
1. customer acquisition: acquisition of the right customers based on known or learned characteristics that will drive growth and increase margins 2. customer retention: retention of satisfied and loyal profitable customers and channels, and thus growing the business profitably over the long run 3. customer profitability: increased individual customer margins, while offering the right products at the right time.
4 key types of marketing analytics
1. descriptive analytics 2. diagnostic analytics 3. predictive analytics 4. prescriptive analytics
two primary goals of any dashboard
1. diagnostic insight 2. predictive foresight
Which of the following are elements of great marketing dashboards? Select all that apply.
1. efficiency and effectiveness 2. predictive value 3. diagnostic insight 4. tools 5. process 6. skills 7. goals and objectives 8. initiative ROI and resource allocation 9. brand and customer asset evolution
Which of the following are benefits of a marketing dashboard? Select all that apply.
1. establishment of direct links between marketing spending and profits 2. facilitation of smoother decision making 3. enhancement of marketing's ability to contribute
to maximize a firms ability to successfully use touchpoints:
1. identify all potential touchpoints 2. develop specific objectives for what kind of information can be collected at each touchpoint 3. determine how that information will be collected and ultimately integrated into the firm's overall customer database 4. develop policies on how the information will be accessed and used.
4 basic elements of investment decision in marketing
1. level of investment 2. returns 3. risks 4. hurdle rates
Which of the following are commonly expressed objectives about an over reliance on ROMI? Select all that apply.
1. pursuit of ROMI during flat periods can be viewed as "causing" underperformance and suboptimal levels of activity 2. ROMI requires the profit to be divided by expenditure, yet other performance measures consider profit or cash flow after deducting expenditures 3. typically marketing expenditures are not treated as an investment in a company's accounting system
Which of the following are sources of Big Data? Select all that apply.
1. social media platforms 2. mobile apps 3. internet connected devices 4. business systems
Predicting a customer's preference for products or services based on the observed preferences of customers who are perceived to be similar is called:
Collaborative filtering
content filtering
an analytical method that identifies which products or services to recommend based on a determination of how similar a product or service seems to be to those that the customer has demonstrated a preference for in the past, or is currently considering.
marketing analyst
an individual familiar with different forms of market and consumer data and who is trained to conduct different market analyses, we well as the computational costs associated with those analyses.
________ is the determination of how to give appropriate credit to different elements of the marketing mix through the measurement of their effects.
attribution
A firm that is ______-_______ places the customer at the core of the enterprise including everything that happens, both inside and outside the firm.
customer centric
Which phase of the CRM process represents the actual implementation of customer strategies and programs?
customer interaction
________ ________ represents the actual implementation of the customer strategies and programs.
customer interaction
Return on _____ _____ is an estimate of the projected financial returns from a customer over the long run.
customer investment
The dollar value of a customer relationship based on the present value of the projected future cash flows from the customer relationship is called:
customer lifetime value
_________ _______ refers to the degree to which an individual will resist switching, or defecting, from one offering to another.
customer loyalty
A comprehensive business model for increasing revenues and profits by focusing on customers is called:
customer management relationship????
________ _______ means the level of liking an individual harbors for an offering.
customer satisfaction
________ ________ is a sophisticated analytical approach to using the massive amounts of data accumulated through the CRM to develop segments of customers for purposes of either market research or development of marketing segmentation and target marketing strategies.
data mining
Which of the following establishes the best environment for handling all the customer data generated through the touchpoint and transforming those data into useful information for marketing management decision making and planning?
data warehousing
_____ marketing involves utilizing the data generated from data mining to contact individuals by various means of marketing communication.
database
A(n) _______ ________ is a comprehensive system providing managers with up-to-the-minute information necessary to run their operation.
marketing dashboard
Data generated through _____ is very diverse and can include profile data as well as posts and emotional reactions to posts.
social media platforms
unstructured data
refers to data that is generated in such a way that it does not possess a specific organizational structure that renders it readily analyzable for knowledge creation.
structured data
refers to the data that is generated in such a way that a logical organization is imposed on it during its generation, thus enabling it to be more readily analyzable for knowledge creation
Big data
refers to the ever increasing quantity and complexity of data that is continuously being produced by various technological sources
market planning
represents a key use of the output from the knowledge discovery phase - enables the capability to develop marketing and customer strategies and programs
A goal-driven investment approach to marketing that maximizes the opportunity for a firm's offerings to reach their full potential in the marketplace is called:
return on marketing investment
________ analysis is a type of analytic method that identifies the general attitude contained with a message by an analysis of its content.
sentiment
organizational learning
the analysis and refinement phase of the CRM process is where the organizational learning occurs based on customer response to the implemented strategies and programs.
Customer loyalty
the degree to which an individual will resist switching, or defecting, from one offering to another. - usually based on high satisfaction coupled with a high level of perceived value derived from the offering and a strong relationship with the provider and its brand(s)
diagnostic analytics
utilizes data to explore the relationships between different marketing-relevant factors that influence the organization's performance either directly or indirectly.
Predictive analytics
utilizes data to make predictions about future marketing outcomes of interest
customer satisfaction
the level of liking an individual harbors for an offering -- that is, to what level is the offering meeting or exceeding the customer's expectations?
data warehouse
the optimal approach to handling all the customer data generated through the touchpoints and transforming those data into useful information for marketing management decision making and marketing planning - affords the opportunity to combine large amounts of information and then use data mining techniques to learn more about current and potential customers
Customer _______ are occurrences in which the selling firm touches the customer in some way and allows for information about him or her to be collected. (Enter one word).
touchpoints
customer touchpoints
where the selling firm touches the customer in some way, thus allowing for information about him or her to be collected.