CHAPTER 11 FINAL EXAM

understanding customer behaviors and preferences, allows a firm to customize communications aimed as specific groups of customers and is likely to result in greater levels of sales

personalizing customer communications

occur after the sale Includes warranty repair capabilities, complaint resolution, product returns, operating information, etc.

post transaction elements

precede the sale Includes customer service policies, the mission statement, the organizational structure, system flexibility, etc.

pre transaction elements

the information used to determine how effective marketing, advertising and promotions have been in the past, and whether these practices should be continued or altered

predicting customer behaviors

an approach to selling products and services in which a customer explicitly agrees in advance to receive marketing information. customers self select the type and time of communication they want

relationship marketing or permission marketing

the practice of dividing a customer base into groups of individuals that are similar in specific ways relevant to marketing

segmenting customers

this type of customer has high life time value, serve as role models, inspire change

strategically significant customers

a segment of customers a company has decided to aim its marketing efforts and ultimately its products and or services towards. a well defined target market is the first element of any marketing strategy

target marketing

the seven R's + the right documentation=

the perfect order

what are the 7 R's of customer

the right... product quantity quality place time customer costs

occur during the sale Includes the order lead time, the order processing capabilities, the distribution system accuracy, etc.

transaction elements

why do companies need a customer relationship management program?

1. acquire new customers 2. retain their existing customers 3. help meet the changing expectations of customers

what are the 6 steps to a successful CRM program

1. creating the CRM plan 2. involve CRM users from outset 3. set the right application and provider 4. integrate existing CRM applications 5. establish performance measures 6. providing CRM training for all users

links an organization and its customers together it involves in house or outsourced personnel responding to customer queries, providing customer service or technical support

call centers

is all of the efforts companies develop to stop losing customers to the competition

churn reduciton

the process of customers changing their buying preferences because they find better or cheaper products and services elsewhere

churn reduction

occurs when a company sells an additional related or complementary product or service to an existing customer after the initial purchase

cross selling

the process of analyzing the customers who have stopped buying to determine why

customer defection analysis

these 2 go hand in hand to determine why customers leave and finding ways to retain them

customer defection analysis and churn reduction

a prediction of the net profit attributed to the entire future relationship with a particular customer

customer lifetime value

involves acquiring, retaining and partnering with selective customers to create superior value for both the company and the customer it provides a means and a method to enhance the experience of individual customers so that they will remain customers for life

customer relationship management

the transformation of the people, process, and technology required to become a customer-centric organization

customer relationship management

the act of taking care of the customer's needs by providing and delivering professional, high quality service before, during, and after the customer's requirements are met.

customer service

customer service is a category of performance measures, such as the percentage of orders delivered on time and complete, the number of orders processed within acceptable time limits

customer service as a performance measure

customer service is a company wide commitment to providing customer satisfaction by placing emphasis on quality and quality management

customer service as a philosophy

customer service is a particular task that a firm must accomplish to satisfy the customers needs. order processing, billing and invoicing, product returns, and claims handling are all typical examples of this

customer service as an activity

a form of marketing that identifies key events in the customer and business lifecycle

event based marketing

involves persuading a customer to buy a more expensive item or upgrade a product or service to make the sale more profitable. it also involves selling the customer extra features or add-ons to the product they are already buying or considering.

up selling

portals for customers to access their account information, check operating hours, ask questions, see product information, find contact information, check on orders, get shipping information, etc.

website self service