Business Strategy and Company-Level Philosophy
Marketing 465-Test 1 Review
*Definition of CRM (ch. 1) -- practice of analyzing and utilizing marketing databases and leveraging communication technologies to determine corporate practices and methods that will maximize the lifetime value of each individual customer to the firm Definition from Perils Article: CRM aligns business processes with customer strategies to build customer loyalty and increase profits over time.
*Definition of Strategic CRM (ch. 3) -- business strategy and company-level philosophy where the knowledge about customers and their preferences have implications for the entire organization
*Frameworks for CRM – Winer -Seven Steps 1. Database of customer activity 2. Analyses of the database 3. Given the analyses, decisions about which customers to target 4. Tools for targeting the customers 5. How to build relationships with the targeted customers 6. Privacy issues 7. Metrics for measuring the success of the CRM program
-3 Categories of Customer Base Metrics -Customer acquisition costs, conversion rates (from lookers to buyers), retention/ churn rates, same customer sales rates, loyalty measures, and customer share -How LCV is described -Understanding each customer and what he or she can deliver to the company in terms of profits and then, depending on the nature of the product or service, addressing either customers individually or in small clusters
-Defining Customer Segments
*A Plan to Invent the Marketing We Need Today – Wind -7 Strategies 1. Bridge the disciplinary siloswork simultaneously 2. Shift from traditional management to network orchestration 3. Change the focus from CRM to CMR 4. Shift the company-branded products to customer-branded solutions 5. Use analytics and metrics as the glue 6. Adopt the adaptive experimentation philosophy in all your activities and strive for empirical generalizations 7.
*Definition of CRM (ch. 1) -- practice of analyzing and utilizing marketing databases and leveraging communication technologies to determine corporate practices and methods that will maximize the lifetime value of each individual customer to the firm Definition from Perils Article: CRM aligns business processes with customer strategies to build customer loyalty and increase profits over time.
*Definition of Strategic CRM (ch. 3) -- business strategy and company-level philosophy where the knowledge about customers and their preferences have implications for the entire organization
*Frameworks for CRM – Winer -Seven Steps 1. Database of customer activity 2. Analyses of the database 3. Given the analyses, decisions about which customers to target 4. Tools for targeting the customers 5. How to build relationships with the targeted customers 6. Privacy issues 7. Metrics for measuring the success of the CRM program
-3 Categories of Customer Base Metrics -Customer acquisition costs, conversion rates (from lookers to buyers), retention/ churn rates, same customer sales rates, loyalty measures, and customer share -How LCV is described -Understanding each customer and what he or she can deliver to the company in terms of profits and then, depending on the nature of the product or service, addressing either customers individually or in small clusters
-Defining Customer Segments
*A Plan to Invent the Marketing We Need Today – Wind -7 Strategies 1. Bridge the disciplinary siloswork simultaneously 2. Shift from traditional management to network orchestration 3. Change the focus from CRM to CMR 4. Shift the company-branded products to customer-branded solutions 5. Use analytics and metrics as the glue 6. Adopt the adaptive experimentation philosophy in all your activities and strive for empirical generalizations 7.