CRM Capabilities and the Customer Life Cycle
Customer acquisition consists of the business processes in the CLC leading up to the customer moment, when consumers become customers . . . or not. This includes awareness generation, knowledge transfer, consideration, pre-sales, and evaluation. Capabilities include consumer surveys in business operations, tracking enterprise-wide customer interactions in business management, and market basket analysis in business intelligence. The enterprise clearly requires customer acquisition to maintain and expand revenues and profits. A business without nev. customer acquisition will shrink and eventually fail. But compared to customer retention amf expanding "share of customer", customer acquisition can be expensive.
I Expanding the "share of customer" is gaining the largest portion of acquisitions made by each individual customer in the global marketplace. The proportion of a customer's move, that goes to a particular enterprise is known as the share of customer. Example capabilities include delivery of new information to a customer through business operations as the custome-, re-enters the CLC, taking advantage of cross-sell opportunities using business managerne7- capabilities, and identifying cross-sell opportunities through business intelligence capabilitie&. The benefits of expanding "share of customer" are similar to customer retention—additional sales without the cost of acquiring a new customer. However, expanding the share of customer is as valuable as customer retention. Most companies find that their most profitable customer-, are the ones that spend the largest percentages of their budgets with the enterprise. For example, one bank recently identified that every one of their most profitable customers (the top 20 per cent) gave their business to the bank, while none of the least profitable custome7,: (the bottom 20 per cent) gave their business to the bank. What is new is the customer-cents_~ nature of applications,...
Please join StudyMode to read the full document