MISY5380

"pacing" (or the time between each purchase

A shortcoming of RFM measures is that they ignore the _________________ of a customers purchases. This can result in overinvestment on lapsed customers.

situation-specific loyalty

Proponents of this approach state that the relationship between attitudes and behavior is moderated by other variables such as an individual's economic circumstances, personality, and the buying situation (on-the-shelf availability, low price, point-of-purchase displays, sales promotion). With this model, it is possible that a consumer may forgo purchasing a brand he likes and prefers because of another brand's promotion or availability.

recency, frequency, monetary value

RFM stands for

collection rules

a company that now allows its customer to provide it with their demographics info over the web and phone needs to verify its ___________ process has been updated.

RFM (Recency, frequency, monetary value)

a computed score for each customer that determines the likelihood that the customer will respond favorably to an offer, promotion or catalog.

Customer Data Integration (CDI)

a data management process where all prospect and customer data can be distributed to points of interaction in a timely and accurate manner

enhancement

a manufcaturer should ensure that the dealers POS system is included in its _______ process.

true

a reference database can be considered a component of CDI.

Examples of touch points

Telephone, internet, face to face, kiosk, and wireless devices

false

The main reason companies introduce loyalty programs is to attract more customers.

true

The most visible form of customer relationship management is probably the loyalty/rewards/frequency program.

false

The relationship between satisfaction and loyalty is symmetrical and linear.

based on satisfaction

acquaintance relationships are

true

all points of customer and business user interaction that determine the nature of the relationship must have access to relevant customer data.

relational databases

allowed companies to identify, access, manipulate, and share customer information across departments. Databases contained customer transaction histories, all customer-company contacts, demographic and behavior information, and customer responses to company campaigns. Customer information could be supplemented with external information and analyzed quickly.

Win-back strategies

are sometimes referred to as regain management or comeback strategies

inertial loyalists

are uninvolved and continue to select a brand because it is not worth the effort to switch.

Moments of truth

assistance a customer receives during a crisis.

moments of truth

assistance a customer receives during a crisis.

true loyalty

based on a strong positive "affect" toward the brand (i.e., liking and preference); therefore, it is the same as affect loyalty. Such positive feelings may lead to undivided loyalty or divided loyalty. Undivided loyalty exists when a customer purchases the same brand whenever purchasing an item in that product category—for example, the city orange juice purchaser. Divided loyalty is said to exist when consumers are loyal to two brands—for example, the beer drinker who only drinks Heineken or Beck's

Successful CRM

begins with acquisition of the right customers and avoiding customers who will be costly to serve.

types of loyalty

behavioral, affect, situation specific, latent, true

false

company acquisition strategies should target even those customers who will not qualify now but may qualify later

false

construction of a database is the first step in the CDI process

Customer Lifetime Value

is the net present value of the future profits to be received from a given number of newly acquired or existing customers during a specified period of years. Or the period of time that a company can reasonably expect them to be a customer.

When it comes to B2B...

it has been found that sales personnel will increasingly rely on CRM especially when three conditions hold: (1) prospect information is found to be correct when making that critical first call; (2) after the call, customer information can be input quickly; and (3) quotes and documents can be sent to prospects quickly

latent loyalty

john's favorite automobile is a Porsche. He is passionate about this brand, but he doesn't own one because he can't afford one. If one day his income increases so he can afford a Porsche, his latent loyalty will manifest itself, and he will then become the proud owner of a Porsche.

true

mining current customer information can help in acquiring the right type of new customers

· Reference database ( a component CDI is based on)

serves as an impartial reference, providing links between all captured instances of a customer.

SaaS

software and associated data are hosted centrally on the Internet (in the "cloud") by a service provider and is typically accessed by users using a Web browser. This eliminates the huge fixed investment that companies previously had to make on computers, related technologies, and software. In simplest terms, cloud computing means storing and accessing data and programs over the Internet instead of a company's hard drive. Cloud-based computing is Internet-based computing in which remote servers are networked in order to allow the sharing of data-processing tasks, data storage and online access to computer resources and services

Sales Force automation and B2B markets

some of the key components of CRM shift when considering business-to-business (B2B) versus business-to-consumer (B2C) relationships—for example, sales force automation is more applicable to the former than the latter; and (3) the composition of CRM systems will be different in big versus small companies, even though their objectives will be the same

Win back strategies

sometimes referred to as regain management or comeback strategies

dialogue marketing

streaming technology capable of generating a running dialogue with customers based on every interaction with the business

data mart

subset of a data warehouse

data warehouse

the central element in CRM system that requires relevant customer data be entered, stored, and available for analysis and dissemination to people in the organization.

migration

the change in customer value over time

migration

the change in customer value over time.

Relationship marketing

views the sale as the beginning, not the end, of a relationship.

mass marketing

went out of popularity due to companies inability to measure results.

downward migration

when customers begin buying less than they did before.

marketing, sales and engineering should act on data collect by the customer contact center

which is a true finding with respect to the establishment of CRM systems?

linkage identification, enhancement, suppression

which is the correct CDI step secquence?

it focuses on the sales transaction

which of the following does not apply to relationship marketing?

retention strategies

works best when there is a steep skew in a companys customer base.

Requirements of CDI

§ Distributed. The distribution of customer data from its source to all points of interaction must be standardized and managed through a single corporate point of reference. § Points of interaction. All points of customer and business user interaction that determine the nature of the relationship must have access to relevant customer data. § Timely. All customer data needed for decision-making must be delivered in a time frame appropriate to the needs of each point of interaction. § Accurate. Customer data delivered must consistently and accurately represent a given consumer entity, including individuals, households, or businesses.

the CRM Ecosystem

integration of back office and front office through data exchange, systems and business process is

Customer data integration

-a data management process where all customer and prospect data can be distributed to points of interaction in a timely and accurate manner.

A,B, and C are all aspects of 360* view

360 degree view of the customer means...

RFM -recency, frequency, and monetary value

An approach to compute a score based on how recently a customer purchased items (recency). How frequently a customer purchases items (frequency). How much a customer spends on each purchase (monetary value).

reference database, enabling technology, and corporate wide adoption of both the reference and database technology

CDI is based on the following components:

emotive loyalists

seldom, if ever, question the correctness of their brand selection.

How is CLV calculated

CLV is calculated by identifying the revenue stream over time, applying a retention rate for each year, subtracting relevant costs, and then applying a discount rate to gross profit. CLV takes into account how much the customer spends on each purchase with the firm and the resulting profit, how often the customer purchases from the firm, how likely the customer is to remain a customer in the future, how much it costs to serve the customer, and the organization's discount rate

More effectively manage the 4Ps

CRM enables companies to do all of the following EXCEPT which of the following?

mass media advertising

CRM enhances a firms ability to be more productive in all of the following area except which of the following?

CRM Suites or CRM point solutions

CRM systems sometime consist of

CRM and relationship marketing

CRM unites the potential of relationship marketing strategies and IT to create profitable, long-term relationships with customers and other key stakeholders. CRM provides enhanced opportunities to use data and information to both understand customers and co-create value with them. This requires a cross-functional integration of processes, people, operations, and marketing capabilities that is enabled through information, technology, and applications.

monetary, social or humanistic bonds

Companies should develop retention strategies based on

Data latency

Concept that data, once captured, may not be readily available for leverage in support of a CRM effort

retention, acquisition

Customer equity is more dependent on ________ than ____________.

true

Dialogue marketing send messages based on demographic changes and life events for each and every customer in the database.

Regarding consistent and accurate data

Inconsistent data is perhaps worse than inaccurate or absent data. When there is no data, no information is generated, and subsequently nothing is available for input for the next step of placing the data into a common format. It is more problematic when the data input is available, but the data elements are inconsistent. This could mean that a data field may contain blanks when it was a required field (i.e., should have contained nonblank characters) or a numeric is imbedded in what should have been an alpha field. Remember that one can plan for inaccurate data as long as it is consistently inaccurate

convenience goods.

Loyalty is probably most difficult to establish for

true

Many consumers are committed to a brand because it represents the lifestyle that they want to be associated with

true

Migration is perhaps more important than customer retention

true

Mining current customer information can help in acquiring the right type of new customers

Data warehouse

Repository for all relevant customer and prospect information. Contains relevant primary and secondary data including history, product information, product return activity, marketing promotion, and campaign data. S

there is a steep skew in a company's customer base.

Retention strategies work best when

false

Retention strategies work best when industry retention levels are high and there is no steep skew in a company's customer base

B2B, B2C

Sales force automation is more applicable to __________ than _______

Reference database

Serves as an impartial reference providing links between all captured instances of customer.

Behavioral loyalty

Simply look at the brand(s) purchased. John's loyalty can be referred to as "spurious," since he really doesn't like Minute Maid but buys it because he doesn't have a choice. His city counterpart also buys Minute Maid orange juice, but she buys it because she likes it more than the other brands. She therefore exhibits "affect loyalty": she buys it and likes it

Touch point

Specific area where an organization and a customer may interact.

Data mart

Subset of a data warehouse that contains less depth or breadth of info, allows for more efficient analysis by functional, business unit, or geographic divisions. Generated from data gleaned from a specific function.

true

Successful CRM begins with acquisition of the right customers and avoiding customers who will be costly to serve.

true

The strategies and techniques used by conversational marketing and dialogue marketing are very similar

transaction specific and cumulative.

The two types of satisfaction measures are

RFM

This score is used to predict a customer's likely response to future marketing expenditures and efforts.

affect loyalty

What type of loyalty is exemplified by someone who has a brand name tattooed on their body?

emotive loyalty

What type of loyalty is exhibited by someone who seldom, if ever, questions the correctness of his brand selection

downward migration.

When customers begin buying less than they did before, it is referred to as

They are basically defensive in nature; i.e., they won't attract many new customers but rather prevent current ones from defecting

Which is most true about loyalty programs

Most customers who are dissatisfied complain directly to the company

Which is not true of customer complaints?

Company acquisition strategies should target even those customers who will not qualify now, but they may qualify later.

Which of the following is false regarding acquisition of new customers?

migration

_________ is perhaps more important than retention

false

data latency means that all relevant customer data is available at all required customer interaction touch points.

what is not a requirement of CDI

databases must capture and store data the same way.

true

dialogue marketing sends messages based on demographic changes and life events for each and every customer in the database.

idiosyncratic fit

difficulties in integrating customer data include all but which one of the following

Examples of CRM

distributors, dealers, lateral partners, and consumers

what are the three loyalist categories

emotive, deliberative, inertial.

· Customer data integration

enables an organization to accrue knowledge about the customer, a necessary antecedent for an effective CRM strategy and allows for the creation of a consolidated view of the customer from multiple customer data stores.

Customer data integration

enabling relevant information to flow freely throughout an organization to then point of the interaction is the goal of........

relationship marketing

focuses on maintaining a continuous relationship with customers and building long-term bonds. Over time, a company learns more about the customer's needs and wants and is, therefore, able to provide more personalized and relevant one-to-one service. With its focus on customer relationships as opposed to one-time transactions, has been viewed as a paradigm shift that has reshaped the entire field of marketing.

deliberative loyalists

frequently compare their preferred brand against others and continue buying their preferred brand only if it merits selection.

steps in CID Process

o Identify Touch points o Define how data will be collected o Establish business rules for data collection o Create a methodology for managing the data input process after Collection o Place the data in a common format o Separate Customer linkage data from all other data o Standardize Customer Linkage Data o Correct the linkage data components o Apply postal processing to the customer linkage data o Perform the customer linkage identification process o Enhance the customer data with other sourced data o Perform a suppression process on the data o Consolidate customer linkage and related customer data

brand indifference

o When there is no feeling toward brands in a particular product category and the consumer purchases whichever brand the store sells (coffee filters, vegetable oil, sugar), there may be no loyalty at all. "Convenience" goods are characterized by such brand indifference. Customers who exhibit spurious loyalty may purchase a brand due to situational constraints, a lack of viable alternatives (e.g., John's continual purchase of Minute Maid because it was the only brand sold), or out of convenience.

all of the above

postal processing does.....

data latency

processing large volumes of data through typical batch processes can result in ___________

sales force automation products

products that are becoming increasingly focused on cultivating customer relationships and improving customer satisfaction.

360-degree view of the customer

refers to a consistent view of the customer from beginning to end of the relationship available to all. The customer data must be integrated from all business areas, including billing, customer contact, marketing, and sales.

data latency

results from architectures that have adopted traditional extraction, transformation, deduplication, and distribution methods to facilitate movement of customer information. Processing large volumes of data through these typically batch processes takes time and often ages the data unnecessarily, which can have a direct impact on the CRM effort.

false

retention strategies work best when industry retention levels are high and there is no steep skew.

B2B markets

sales force automation is most applicable to which of the following

true

the digital age has introduced a more discerning customer who expects much more from their interactions with a business

affect loyalty

the feeling components of an attitude and include "liking" and "preference." Proponents of this approach state that loyalty is determined not simply by looking at what is purchased but also by looking at a person's "liking" and "preference" of the brand. Using this model, John Gordon would not be considered "loyal" to Minute Maid brand orange juice, but his city counterpart would. Many feel that for true loyalty to exist, there must be affect loyalty—that is, a strong commitment to a brand. Many are committed to a brand because it represents the lifestyle they want to be associated with (Harley-Davidson, Jack Daniels, Starbucks), represents the values they identify with (National Geographic, John Deere), or represents prestige or quality (Rolex, Louis Vuitton, Bose). Affect loyalty really exists when someone has a brand such as Harley Owners Group (H.O.G.) tattooed on his or her arm. Affect loyalty means feeling strongly about the brand. This is true loyalty.

true

the strategies and techniques used by conversational marketing and dialogue marketing are very similar

True

the strategies and techniques used by conversational marketing and dialogue marketing are very similar.

the quality of the interactions

the success of a business customer relationship is determined by:

acquaintance relationships

these relationships are based on satisfaction, and companies have to provide only parity value to achieve this (i.e., produce products and services equal to the competition

true

to enable CRM effectively, disparate customer data must be integrated into a cohesive info flow so that all data can be available during a customer interaction

Sales Force Automation

tools that were developed and introduced to improve the capture of customer and prospect information and to provide the sales force with real-time information.