MKTG 343 - Test 3: Chapter 11 Customer Relationship Management

■A business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty with a retailer’s most valuable customers.

■All customers are not equally profitable, and more or less

■Retailers now concentrate on providing more value to their best customers

– the percentage of the customers’ purchases made from the retailer

■Committed to purchasing merchandise and services from a retailer ■Resist efforts of competitors to attract the loyal customer ■Emotional attachment to retailer nPersonal attention nMemorable positive experiences Brand building communications programs

Can Offering Price Discounts Achieve
Customer Loyalty?

is an iterative process that turns customer data into customer loyalty through four activities:

1.Collecting customer data 2.Analyzing the customer data and identifying target customers 3.Developing CRM programs 4.Implementing CRM programs

a complete history of purchases nPurchase date, price paid, SKUs bought, whether or not the purchase was stimulated by a promotion

Visits to web site, inquires to call center, direct mail sent to customer

?

nDemographic and psychographic data

■Customer’s responses to

^{■Asking for identifying information nTelephone number, name and address ■Offering frequent shopper cards nLoyalty programs that identify and provide rewards to customers who patronize a retailer nPrivate label credit card (that has the store’s name on it) ■Connecting Internet purchasing data with the stores}

■Notice and awareness comprehensive statement about information storage, manipulation, and dissemination ■Choice/consent Opt-in and opt-out options ■Access/participation Customer able to confirm accuracy ■Integrity/security Controls for theft and tampering ■Enforcement/redress Mechanism to insure compliance