Chapter 5: CRM, Big Data, and Marketing Analytics

collaborative filtering

Predicts a customer's preferences for products or services based on the observed preferences of customers who are perceived to be similar.

customer empowerment

Reflects the extent to which a firm consistently provides its customers various avenues to (a) connect with the firm and actively shape the nature of their encounters and (b) connect and collaborate with each other.

descriptive analysts

Summary analytics of raw data, typically in a visual format, as a first step before considering more complex and costly analyses.

organizational learning

The analysis and refinement phase of the CRM process that is based on customer response to the firm's implementation strategies and programs.

big data

The ever-increasing quantity and complexity of data that is continuously being produced by various technological sources. Characterized by four components: volume, velocity, variety, veracity.

formalization

The formal establishment of a firm's structure, processes and tools, and managerial knowledge and commitment to support its culture.

customer satisfaction

The level of liking an individual harbors for an offering.

marketing analytics

The practice of measuring, managing, and analyzing marketing performance to maximize marketing effectiveness and optimize return on marketing investment (ROMI).

firing a customer

The shifting of investment of resources from a less attractive customer to more profitable ones.

customer lifetime value (CLV)

The total value (including revenue earned) generated for a firm through building a life-long relationship with a customer.

customer touchpoints

Where the selling firm touches the customer in some way, thus allowing for information about him or her to be collected.

return on customer investment (ROCI)

A calculation that estimates the projected financial returns from a customer. It is a useful strategic tool for deciding which customers deserve what levels of investment of various resources.

data warehosue

A compilation of customer data generated through touchpoints that can be transformed into useful information for marketing management decision making and marketing planning.

customer relationship management (CRM)

A comprehensive business model for increasing revenues and profits by focusing on customers.

marketing dashboard

A comprehensive system of metrics and information uniquely relevant to the role of the marketing manager in a particular organization. Dashboards provide managers with up-to-the-minute information necessary to run their operation.

customer loyalty

A customer's commitment to a company and its products and brands for the long run.

influencer marketing

A form of social media marketing involving endorsements and product placement from influencers, people and organizations who have a purported expert level of knowledge or social influence in their field.

attribution

A key factor in assessing the impact of the marketing mix; 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.

data mining

A sophisticated analytical approach to using the massive amounts of data accumulated through a firm's CRM system to develop segments and microsegments of customers for purposes of either market research or development of market segmentation strategies.

sentiment analysis

A type of analytic method that identifies the general attitude (for example, positive, negative, or neutral) contained within a message through an analysis of its content.

content filtering

An analytic 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 customer data and who is trained to conduct different market analyses, as well as the computational costs associated with those analyses.

customer mind-set

An individual'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.

customer experience management

An organization-wide strategic focus on ensuring that all aspects of a customer's encounters with the firm meet or exceed their expectations.

semi-structured data

Data that contains elements of both structured and unstructured data. Semi-structured data contains some elements that can be viably organized by machines but also elements that are not structured enough for automated analysis.

structured data

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.

unstructured data

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.

perspective analytics

Data used to determine the optimal level of marketing-relevant factors for a specific context by considering how adjusting their levels in varying ways will impact different marketing outcomes.

diagnostic analytics

Data utilized to explore the relationships between different marketing-relevant factors that influence the organization's performance either directly or indirectly.

predictive analytics

Data utilized to make predictions about future marketing outcomes of interest.

database marketing

Direct marketing involving the utilization of the data generated through CRM practices to create lists of customer prospects who are then contacted individually by various means of marketing communication.

influencer

In the context of social media, influencers are individuals who have built a reputation for their knowledge and expertise on a specific topic. They make regular posts about that topic on their preferred social media channels and generate large followings of enthusiastic, engaged people who pay close attention to their views.

customer value co-creation

In today's marketplace, customers and providers combine forces to co-create offerings of value.