Exam 21: Customer Relationship Management (CRM)

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:

When USAA insurance company collects relevant information from customers,such as date of last communication with the customer,and how often the customer contacts the company,this is an example of:

Fingerhut,the catalog retailer,used _____ to determine that customers who change residences are three times more likely than customers who have not moved to buy tables,towels,and decorative products but no more likely to buy jewelry or footwear.As a result,Fingerhut created a catalog for people who have changed residences.

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 Most airlines maintain these unpublished super elite frequent-flier plans, such as Continental's Chairman's Circle and Delta's Executive Partner programs.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 loyal customers for making multiple purchases,is an example of a(n):

A _____ is a central repository for data from various functional areas of the organization that are stored and inventoried on a centralized computer system so that information can be shared across all functional departments of the business.

Briefly describe how and why an organization uses data mining.What are some commonly used types of data analysis?

Les Ailes de la Mode,a Quebec retail store that promotes the highest quality customer service,has not only established itself as a top retailer in the province,but also as a credit card and point program company,a cataloger and Internet seller,and even a publisher.Through gathering customer information for its credit cards and point program,through catalog and Internet orders,and through subscriptions to its publications,Les Ailes de la Mode has created several different:

Data consolidation is an analytical process that compiles actionable data about the purchase habits of a firm's current and potential customers.

Using technology provided by Smart Button software,the WNBA's Los Angeles Sparks have implemented a new system that gathers information about its best customers,season ticket holders,and rewards those customers in many ways including free tickets to Sparks home games and cash prizes.This is an example of a(n)_____ system.

In a speech,David Poirier,chief information officer of Hudson's Bay Company,a Canadian retailer,said,"We [Hudson's Bay Company] had all kinds of data in different places.We didn't have a single view of the customer until we focused on finding one method to manage relationships with our customers." Hudson's Bay would use a _____ to profile customer segments for better CRM marketing efforts.

In the RFM analysis model,"F" stands for:

Which of the following techniques used to analyze marketing databases considers whether a customer has made a purchase recently as well as how often that customer makes a purchase?

Comment on the following statement: "A CRM cycle is a rather simplistic customer service strategy." Is this an accurate statement? Provide an alternative explanation of a CRM cycle.

L.L.Bean,Inc.has been reducing the number of catalogs it sends out while increasing its sales and profits.With _____,L.L.Bean now identifies customers who have purchased recently and often and have spent considerable money.Such customers are most likely to purchase again.

Touch points are any situations in which the company's employees actually interact with customers.When a customer places an order through the company Web site no touch point has been created.

Every time Barry orders running shoes from Road Runner Sports,the Web site or the operator on the phone always tries to sell him something in addition to the shoes he ordered,such as socks or other apparel. This is an example of:

Data mining is used to find hidden patterns and relationships in the customer data stored in the data warehouse.

_____ is the process of finding hidden patterns and relationships in the customer data stored in the data warehouse.

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 _____.