Exam 21: Customer Relationship Management (CRM)

Apple,Inc.has stores,a Web site,and a toll-free phone number where consumers can provide valuable information to the company in developing a CRM system.All these possible areas of the company where consumers can communicate with the business are called:

After Ruth and Mike had paid in advance for their week's stay at a Vermont Inn,Ruth felt that they might have chosen poorly and that they were committing themselves to stay at a place they might hate.Then Ruth got a letter from the Inn's owner stating that she was looking forward to their visit and asking what they most enjoyed for breakfast.The hospitality of the letter dealt with Ruth's cognitive dissonance by:

A segmented communications strategy to _____ users might encourage repeat purchases through a direct incentive such as a limited-time price discount for ordering again.

Jan Riddle has limited money to invest in a mailing to people who might be interested in subscribing to a new magazine about raising children on the autism spectrum.She wants to mail to those prospects with the highest probability of becoming subscribers.Riddle should use a:

CRM concerns many Americans because:

Les Ailes de la Mode,a Quebec retailer,offers its customers Les Ailes MasterCard.The card is connected to a points program that offers one point for every $20 of purchases on the card and triple that on purchases made at Les Ailes.It also incorporates an electronic chip,through which a $10 coupon is awarded to each member every month via the electronic gift card (on purchases of $10 or more every month).Card members also receive free subscriptions to the retailer's Les Ailes magazine.This shows how CRM can be used:

Subaru of America targeted outdoor enthusiasts when it added an outdoor life section to its Web site,organized by area of interest.The site will serve as a platform for co-marketing and promotional programs and will allow Subaru to gather most overt and covert information.Which of the following provides the most likely reason why Subaru has added this section to its site?

_____ interactions occur when customers buy products in a store.

Updating customers periodically about the status of their orders reinforces purchase decisions.

Drugstore chain CVS has an ExtraCare program that allows customers to register for a card that is swiped prior to each purchase and gives discounts and offers special in-store promotions.The most likely reason why CVS implemented this reward program is to:

Which of the following is an example of a channel through which customer data are traditionally gathered?

Which of the following is a data manipulation technique that projects the future value of the customer over a period of years using the assumption that marketing to repeat customers is more profitable than marketing to first-time buyers?

The Old Westbury College Foundation raised $80,000 at its "A Taste of Long Island," a gala dinner where all proceeds went to support scholarship funds and educational programs at SUNY College at Old Westbury.Attendees were people who had contributed to the scholarship program previously and were reached through a:

While many catalog retailers send out a standard catalog to all potential customers,Land's End uses information it has gathered about customers in its CRM system to target the catalog to the individual.This approach used by Land's End is an example of the _____ approach.

Frequent Fliers If you think George Clooney's character in the movie Up in the Air was pure fiction,think again.Clooney portrayed a frequent flier who enjoyed top-of-the-line perks the likes of which even most "elite" fliers don't experience.That's because he was a member of American Airline's invitation-only ConciergeKey recognition program.Most airlines maintain these unpublished super elite frequent-flier plans,such as Continental's Chairman's Circle and Delta's Executive Partner programs.These programs are reserved for the highest-volume customers in terms of miles flown or highest-value in terms of revenue.You'll have to fly upwards of 300,000 miles or spend $50,000 a year to be invited. -Refer to Frequent Fliers.The ConciergeKey program,which rewards key customers for making multiple purchases,is an example of a(n):

Through campaign management,all areas of the company participate in the development of programs targeted to customers.

Briefly describe five of the many common CRM marketing database applications.

Which of the following statements about a CRM system is true?

_____ is the addition of information to customer or prospect records for the purpose of better describing or better determining the responsiveness of customers or prospects.

Lifetime value analysis can show marketers: