Chapter 9 Customer relationship management



Chapter 9 Customer relationship management

Self-assessment questions

1. What are the goals of acquisition and retention in an online context?

• Customer acquisition (techniques used to gain new customers): obtain leads via e-mail, qualify via profiling and convert to sales.

• Customer retention: maintain relationships with existing customers through maintaining a dialogue via e-mail and web site.

2. Outline the differences between permission marketing and interruption marketing including reference to the terms opt-in and opt-out.

• Permission marketing: customers agree (opt-in) to be involved in an organization’s marketing activities usually as a result of an incentive.

• Interruption marketing: marketing communications that disrupt customers activities, e.g. telesales call, which is not explicitly opt-in.

3. Summarize the main types of online marketing communications for traffic building.

• Search engine registration

• Link building

• Banner advertising and sponsorship

• PR

• E-mail

• Affiliate marketing.

4. Explain why mixed-mode buying needs to be understood by those managing an e-commerce site.

Many buying decisions are complex – they are not only made online, but using a combination of online and offline. To influence the decision companies need to be active both online and offline in influencing a range of mixed-mode buying scenarios.

5. Explain a range of techniques for attracting repeat visits to a web site.

• Direct e-mail with incentive/offer

• Personalization

• Community/news

• Competitions and promotions.

6. What is the difference between personalization and mass customization?

Personalization is generally considered to be one-to-one marketing where the customer selects their choices. Mass customization also involves tailoring, but from a limited number of options. There is overlap between the two concepts.

7. How can an e-commerce site be used to achieve extension in CRM?

For techniques to encourage customers to increase their involvement with an organization, see Q5.

8. What are the management issues in managing data and applications integration in CRM?

• Cost of integration

• Disruption to service during integration

• Data transfer from legacy to new systems

• Single vendor or multi-vendor sourcing.

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