Exam 21: Customer Relationship Management (CRM)

What is knowledge management? What type of companies use knowledge management?

Los Angeles Sparks The WMBA's Los Angeles Sparks is an example of a sports franchise adopting a CRM approach to grow their fan base.The Sparks CRM system,provided by software vendor "Smart Button" manages all email promotions sent to fans.Additionally,the sparks online fan site keeps fans informed of upcoming games,practices open to the public,team events,and more.The Sparks also instituted their new Home Court Advantage program that awards season ticket holders points for each seat they purchased for the season,that ticket holders can give to others.The ticket holders can actually earn extra points by telling Sparks at ticket renewal time who's getting the seats.At the end of the season,the top three point-givers receive cash prizes.The Sparks organization is gathering information on the ticket holder as well as the people that attend games with the free tickets.As a result,the Sparks have seen a sharp rise in late-season ticket sales this year. -Refer to the Los Angeles Sparks.The information gathered from ticket holders will probably become part of the organization's _____ list.

The United States has the most restrictive privacy laws in the world.

The process of centralizing data in a CRM system is sometimes referred to as the interpolation of external and internal touch points.

Que Rica Vida General Mills has created Que Rica Vida magazine,which seeks to build relationships with newly acculturated Latina moms by providing them with culturally relevant lifestyle information and expert advice on the topics of education,holiday occasions,health and wellness,and family-issues of great importance to Hispanic families in America.Each issue normally contains 6-10 General Mills coupons.In addition to the magazine,General Mills also has a Web site of the same name: QueRicaVida.com,as well as a Spanish-language iPad application that provides Spanish-speaking consumers with instant access to more than 900 Latin-inspired recipes. -Refer to Que Rica Vida.The Que Rica Vida magazine and Web site are targeted to a specific group of customers: newly acculturated Latina moms.This is an example of:

The cable industry needs to identify current and future traffic patterns so it can manage the growth of cable systems.Because of high costs,it is undesirable to buy bandwidth before it is needed.It is also time-consuming to upgrade a cable system.Furthermore,consumers hate to wait for capacity increases.Therefore,the industry should use _____ to determine when and where new systems should be implemented.

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.Airlines have estimated the future value of these elite fliers and found that they are very profitable for their business.What technique did the airlines use to project the future value of these fliers over a period of several years?

Walmart captures point-of-sale transactions from thousands of stores in several countries and continuously transmits these data to its massive data warehouse.Wal-Mart allows more than 3,500 suppliers to access data on their products and perform data analyses.These suppliers use the data to identify customer buying patterns at the store level.They use this information to manage local store inventory and identify new merchandising opportunities.Both Wal-Mart and its suppliers are engaged in:

Compare and contrast a data warehouse and a database.

Los Angeles Sparks The WMBA's Los Angeles Sparks is an example of a sports franchise adopting a CRM approach to grow their fan base.The Sparks CRM system,provided by software vendor "Smart Button" manages all email promotions sent to fans.Additionally,the sparks online fan site keeps fans informed of upcoming games,practices open to the public,team events,and more.The Sparks also instituted their new Home Court Advantage program that awards season ticket holders points for each seat they purchased for the season,that ticket holders can give to others.The ticket holders can actually earn extra points by telling Sparks at ticket renewal time who's getting the seats.At the end of the season,the top three point-givers receive cash prizes.The Sparks organization is gathering information on the ticket holder as well as the people that attend games with the free tickets.As a result,the Sparks have seen a sharp rise in late-season ticket sales this year. -Refer to the Los Angeles Sparks.Some consumers may not want others to provide their names to the Sparks organization.This reflects which concern regarding CRM programs?

Using customer database information to offer related products to customers is called:

Communications between customers and organizations that occur in stores or at information kiosks are called:

Best Buy instituted a system in all of its stores that customizes their product offerings for the five key customer segments it has identified: affluent professional males,young entertainment enthusiasts,upscale suburban moms,families who are practical technology adopters,and small businesses with less than 20 employees.This focus implies that Best Buy is:

_____ involves developing product offerings customized for the appropriate customer segment and then pricing and communicating these offerings for the purpose of enhancing customer relationships.

_____ is a company-wide business strategy designed to optimize profitability,revenue,and customer satisfaction by focusing on highly defined and precise customer segments.

The My Coke Rewards program allows consumers to earn reward products and services by registering points they receive by consuming Coca Cola products.The My Coke Rewards program allows Coca Cola to collect information about consumers that they can use to optimize profitability,revenue,and customer satisfaction.The My Coke Rewards program is an example of a(n)_____ program.

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.American Airlines gives its gate employees the authority to hold up a connecting flight when a ConciergeKey member's incoming flight is delayed.The delegation of this authority to a gate employee is called:

When Ford Motor Company launched an online effort to market its F-Series trucks,it created a database.One potential problem with the use of this database is:

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.Most airlines have considerable information regarding their frequent fliers,some of which was purchased from outside vendors.Purchasing information on customers to better describe their needs or to determine how responsive they might be to marketing programs is called:

Sony wants to build long-lasting relationships by focusingon what satisfies and retains their customers.For example,Sony's Playstation Web site is designed to create a community of users who can join PlayStation Underground where they will "feel like they belong to a subculture of intense gamers." Sony evidently: