Chapter 1 - Customer Relationship Management (Crm)

Front 1

Customer Relationship Management (CRM)

Back 1

building relationships by delivering satisfaction

helps you offer Customer more perceived value (perceived benefits minus costs)

helps organizations track the value of each customer

Front 2

6 reasons to do CRMS

Back 2

1. Reduces costs to acquire customers

2. Reduces the cost to serve customers

3.Helps identify unprofitable customers

4. Facilitates experimintaton and learning

5. Helps measure ROMI

6. Other things

Front 3

Review CLV slides

Back 3

Now!!

You want to use the CLV to determine where your Acquisition costs should be

Front 4

Dunnhumby

Back 4

Most advanced CRM system used by Kroger

Front 5

Not all customers are created equal

Back 5

Some customers provide most your profit while others may end up costing you money

The profitable customers are ALWAYS right. while its ok to say to the ones that may be costing you money "thanks but no thanks"

Front 6

if you're an entreprenuer you need to figure out the value of an additional customer and the value of an additional customer in each segment

Back 6

true

Front 7

How deo we build strong brands by INCREASING customer loyalty

Back 7

you UNDER promise and OVER deliver

Front 8

Loyalty Programs

Back 8

Structure:
Reward points, tiers, percentage, Tie-ins

Benefits:
Information, Loyalt?

Problems:
Rewards too high, ubiquity, loyalty? liability Uninspired, lack of communications, Database not used to full extent

Front 9

Permission Marketing-Seth Godin

Back 9

Once a customer volunteers his or her time, consumers pay more attention to the marketing message: "It serves both customers and marketers in a symbiotic exchange."

Front 10

Memorize the Simplified Customer Life Value (CLV) see slides chp. 1

Back 10

Does 2 things

M is the profit you'll make on a transaction (rev-cogs)

c is the costs in getting them in the door over time (continued advertising efforts)

AC (Acquisition cost) cost to acquire the new customer

r is the retention rate in period t (the probability of keeping the customer)

i is the discount rate or firm's capital cost

Front 11

you must know the value of your consumers

Back 11

use the CLV formula