Taewon Suh Module 4 Exam

_________________________ is defined as a consumer's positively valenced brand-related cognitive, emotional, and behavioral activity during or related to focal consumer/brand interactions. With a specific brand, it is the level of a customer's cognitive, emotional and behavioral investment in specific brand interactions

(Customer) engagement

Detractors

(Score 0-6) Unhappy customers who probably speak negatively about your company and brand.

Passive

(Score 7 or 8) Satisfied. but unenthusiastic customers who can be swayed by competitive offerings

Promoters

(Score 9 or 10) Loyal enthusiasts who will keep buying your products and services, refer others, and create WOM.

Three most popular measures of resonance

-Customer engagement index -Customer loyalty index -Net promoter score

Marketing Dashboard Level 3: Brand Equity Building

-Key indicators of brand equity building are brand attraction (or customer acquisition) and brand resonance (or customer retention)

Resonance (Customer Retention)

-Survey metrics also abound -Measures gauge behavioral intentions such as the customer's willingness to continue buying, expand the relationship, and advocate for the brand - Non survey measures of loyalty might include actual buying history, retention/defection rates, share of wallet, and number of referrals

Before calculating lifetime customer value, it is important to break customers down into four key categories:

1) Good customers 2) New customers 3) Old customers who infrequently purchases, probably not a customer at all 4) Lapsed customers who have been re-recruited, often behave like a new customer

How do you make a targeting decision?

Assess the FIT between customer needs and internal capabilities

Customer Satisfaction

Assesses the satisfaction level of customers along specific performance criteria within the value proposition

Key indicators of brand equity building are brand ___________________ (or customer acquisition) and brand resoncance (or customer retention)

Attraction

AIDA

Awareness-Interest-Desire-Action

________________________ is a succint expression of how customers can expect to experience the brand across all touchpoints

Brand Promise Statement

_____________________________________ has been viewed as a promising concept that can more robustly explain focal consumer behavior outcome and relationships built up between a brand and consumers

Customer engagement

__________________________ is a way of measuring how much customers are worth to a business over the length of time that they are customers

Customer lifetime value

Customer Engagement

A consumer's positively valenced brand-related cognitive, emotional, and behavioral activity during or related to focal consumer/brand interactions

Customer lifetime value

A way of measuring how much customers are worth to a business over the length of time that they are customers

__________________ model includes "Awareness-Interest-Desire-Action"

AIDA

Social CRM (Customer Relationship Management)

A phrase used to describe the addition of a social element in traditional CRM processes

______________________________ are derived from historical data including retention and purchase rates

Customer value metrics

______________________________ can be used to estimate future purchases by individual customers and customer segments

Customer value metrics

A marketing ____________________ is a report that pulls together the most important predictive metrics in a format that is easily understandable

Dashboard

Share of Visits (SOV)

Defined as the number of visits to the store as compared to the total number of visits

A ____________________________________ is a report that pulls together the most important predictive metrics in a format that is easily understandable

Marketing dashboard

If the brand promise is compelling and consistently reinforced and delivered, results will be reflected in measures of key _________________________ outcomes

Marketplace & financial

Commonly sought-after brand outcomes include:

Distribution coverage; size of the customer base; market share; price premium; total revenue; gross profit; operating income

An example of perceptual data?

For example, please evaluate "taste" of product A

Customer value metrics can be used to estimate _______________ by individual customers and customer segments

Future purchases

To support effective measurement, it is important to set clear ____________________ for a marketing campaign

Goals

Brand attachment

How loyal the customer feels toward the brand

NPS Calculation Example

If 30% of your customers are promoters and 15% are detractors, then resulting NPS is 15% (i.e., 30% - 15%)

Needs-based segmentation uses perceived ____________________ of attributes as segmenters

Importance

Share of Wallet (SOW)

Indicates expenditure at a specific store as a fraction of total category expenditures, which is also mentioned as Share of Purchase (SOP)

The objective of measuring marketing performance is:

To improve the management of marketing assets by providing quantitative evidence for decision making

Customer Experience Management concerns ______________________ improvement priorities

Touchpoint

_____________________________ being is a key performance indicator of customer engagement

Net promoter score (NPS)

Marketing Dashboard Level 1: Touchpoint Improvement Initiatives

Objective is to put metrics around the level of effort and steps being taken to improve priority touchpoints

Simply calculating the cost per contact is not enough. The measurements must calculate the ____________________________________.

Value of the results

Brand attitudes

Overall evaluations of the brand in terms of its quality and the satisfaction it generates

Social CRM

can be defined as the process of managing customer-to-customer conversations to engage existing customers and prospects with a brand and so enhance CRM

What are the datasets you need for positioning research?

Perceptual & preference data

The purpose of marketing is to maximize the generation of ______________________________________

Profitable revenue

______________________ are loyal enthusiasts who will keep buying your products and services, refer others, and create WOM

Promoters

_____________________ is a phrase used to describe the addition of a social element in traditional CRM processes

Social CRM (Customer Relationship Management)

Poor ____________________ systems were a big reason for lack of online engagement

Measurement

Broadening ___________________________ to include all phases of marketing makes it possible to measure success at key milestones in the marketing and sales process

Measurements

Recency, Frequency and Monetary Value (RFM)

Measures how recently, how frequently and the amount of spending exhibited by a customer

Customer Profitability

Measures the net profit of a customer, or a segment, after allowing for the unique expenses required to support that customer

Customer Acquisition

Measures, in absolute or relative terns, the rate at which a business unit attracts or wins new customers or business

The objective of _________________ is to improve the management of marketing assets by providing quantitative evidence for decision making

Measuring marketing performance

_________ is calculated by taking the percentage of promoters and subtracting the percentage of detractors

NPS

NPS Formula

NPS = % of Promoters (9,10) - % of Detractors 0-6's)

Net promoter score (NPS)

NPS asks people a single question like "How likely is it that you would recommend our company to a friend or colleague?" and asking them to rate this on a scale from 0 to 10, where 0 is "not at all likely" and 10 is "extremely likely." Upon receiving the survey returns from respondents, the responses can be divided into three groups of promoters (9 & 10), passive (7 & 8), and detractors (0-6).

Brand awareness (AIDA)

The extent and ease to which customers recall and recognize the brand and can identify the products and services with which it is associated

Brand activity

The extent to which customers purchase and use the brand, talk to others about the brand, seek out brand information, promotions, and events, and so on

____________________ uses a single indicator of customer loyalty to measure a brand's performance

The net promoter score (NPS)

Social CRM builds upon CRM by:

Leveraging a social element that enables a business to connect customer conversations and relationships from social networking sites in to the CRM process

Brand value is created at this stage when customers have:

(1) a high level of awareness (2) strong, favorable, and unique brand associations (3) positive brand attitudes (4) intense brand attachment and loyalty (5) a high degree of brand activity

Customer Lifetime Value calculation has three stages:

(1) identify a discrete group of customers for tracking (2) record (or estimate) each revenue and cost for this group of customers by campaign or season (3) calculate the contribution by campaign or season

Industry experience indicates that:

-A 5% increase in customer retention could create a 125% increase in profits -A 10% increase in retailer retention can translate to a 20% increase in sales -Extending customer lifecycles by 3 years could treble profits per customer

Marketing Dashboard Level 2: Customer Experience Management

-Concerns touchpoint improvement priorities -No agreement on the number of touchpoint priorities a brand should have, three to five is a rule of thumb

Attraction (Customer Acquisition)

-Gauge the percentage of the market evidencing brand awareness, consideration, preference, and choice (and the conversion rates across adjacent categories) -Non survey measures of customer attraction could include traffic counts and trial rates, for example

Marketing Dashboard Level 4: Marketplace and Financial Outcomes

-If the brand promise is compelling and consistently reinforced and delivered, results will be reflected in measures of key marketplace and financial outcomes

For each of these outcome metrics (and all others in the brand scorecard), there should be at least four pieces of performance data:

-Previous period actual -Current period target -Current period projected -Next period forecast

Extending customer lifecycles by __________ years could triple profits per customer

3

Industry experience indicates that a _____% increase in customer retention could create a 125% increase in profits

5

Brand Promise Statement

An expression of how customers can expect to experience the brand across all touchpoints. It serves as the unifying strategic principle that holds the brand scorecard together

The __________________ of customers comes to an end when their contribution becomes so small as to be insignificant, unless steps are taken to revitalize them

Lifetime

Efficiency metrics

Describe the cost of implementing marketing programs and campaigns

Another form of measurement is ___________________ metrics, which describe the cost of implementing marketing programs and campaigns

Efficiency

The two main ____________________ metrics are staff hours per project and cycle time per project

Efficiency

Before calculating lifetime customer value, it is important to break customers down into four categories. A _______________ customer who has been re-recruited often behaves like a new customer

Lapsed

The primary ingredient in tracking research (or marketing monitoring) is often _______________ measures

Quantitative

The primary ingredient in tracking research (or marketing monitoring) is:

Quantitative measures

_______________________________ of brand knowledge can help to more definitively assess the depth and breadth of brand awareness; the strength, favorability, and uniqueness of brand associations; the positivity of brand judgments and feelings; and the extent and nature of brand relationships

Quantitative measures

What are two datasets you need for segmentation/targeting research?

Segmentation & discrimination data

Past Customer Value (PCV)

The past profit contribution of the customer

Share of Purchase (SOP)

The relative share of a customer's purchase as compared to the total number of purchases

Brand associations (AIDA)

The strength, favorability, and uniqueness of perceived attributes and benefits for the brand, encompassing tangible and intangible product or service considerations