Questions and Answers of Customer Relationship Management

1. The amount of investment in a customer as well as how it is invested has an impact on acquisition, retention, and customer profitability.
3. What is the expected revenue from that customer?
2. When is the customer expected to buy each product?
1. What is the sequence in which a customer is likely to buy multiple products or product categories?
Anoptimization algorithm that maximizes the profits from each individual customer by examining the impact of various levels of marketing communication inputs
A panel data model that predicts the cash flows from each individual customer, also as a function of marketing communication inputs and the customers’ past purchase behavior observed over time.
A probability-based model that predicts the interpurchase time of each customer, as a function of marketing communication inputs and the customers’ past purchase behavior observed over time.
5. Please explain the phenomenon of the privacy paradox.
4. Please give examples for customers’ privacy protective responses and explain the potential consequences for companies.
3. Imagine you are the manager of a U.S. company selling apparel over the Internet. What are the main privacy regulations to be kept in mind when selling to a German customer?
2. The U.S. and Germany reflect two different perspectives of customer privacy regulation.Please state and describe both perspectives and explain their historical and cultural origin.
1. Please explain the role of public media as a driver of customers’ privacy concerns.
At the time of the collection and each usage, the company clearly sets out the right to optout from direct marketing via e-mail.
The customer has not opposed the use of e-mail for further direct marketing.
The organization uses the e-mail contact for marketing very similar products and services.
The organization has received the e-mail address in the context of selling goods or services to the customer.
Information on customers’ online behavior is collected using cookies and click-stream technology without customers’ consent.
Customers voluntarily enter personal information, such as their name, address, and credit card number, into databases.
3. Companies should take more steps to make sure that unauthorized people cannot access personal information in their computers.
2. Computer databases that contain personal information should be protected from unauthorized access—no matter how much it costs.
1. Companies should devote more time and effort to preventing unauthorized access to personal information.
4. Companies should never share personal information with other companies unless it has been authorized by the individuals who provided the information.Improper Access:
Companies should not use personal information for any purpose unless it has been authorized by the individuals who provided the information.2. When people give personal information to a company for
4. I’m concerned that companies are collecting too much personal information about me.
3. It bothers me to give personal information to so many companies.
2. When companies ask me for personal information, I sometimes think twice before providing it.
1. It usually bothers me when companies ask me for personal information.
3. It is very important to me that I am aware and knowledgeable about how my personal information will be used.Collection:
2. A good consumer online privacy policy should have a clear and conspicuous disclosure.
1. Companies seeking information online should disclose the way the data are collected, processed, and used.
3. I believe that online privacy is invaded when control is lost or unwillingly reduced as a result of a marketing transaction.
2. Consumer control of personal information lies at the heart of consumer privacy.
1. Consumer online privacy is really a matter of consumers’ right to exercise control and autonomy over decisions about how their information is collected, used, and shared.
7. How can the risks of the shift from goods to services be reduced or eliminated?
6. What are the risks associated with the shift from goods to services?
5. Explain which type of hybrid offering Xerox provides to its customers.
4. Explain the advantages and disadvantages of the different criteria for selecting key accounts.
3. What are the key steps to successfully implementing a KAM program?
2. How can sales managers and senior management support SFA adoption and usage by employees?
1. Describe the benefits of SFA and their linkages.
Post-deployment customer support.For the seller, the most important factor is guaranteeing that a buyer adopts the solution and to meet the buyer’s needs and requirements through the design of
Their development
Customization and integration of industrial goods and/or services
Ensure access to resources, such as data about the installed base product usage and process, product development and manufacturing assets, sales forces and distribution networks, and a field service
Design services that build on existing product platforms.
Developing defensible best practices in electronic discovery.Mandate a centralized administration of services, such as putting different services in one location or a separate organization.
Creating personalized, multichannel marketing communications.
Designing, authoring, and translating technical and user documentation.
Improving communication processes and back-office functions associated with creating, capturing, managing, and routing customer, employee, and supplier information.
Consolidating in-house production and commercial printing under a single point of control.
Managing print services for office, production, and virtual worker sites.
6. Definition of most interesting key accounts.
5. Selection and clustering of potential key accounts.
4. Analysis of attractiveness (sales volume, competitive situation, image, etc.), chances of acquisition, and segmentation(products, industry, etc.) of these 200 companies.
3. Preparation of a list with the 200 biggest companies with the highest potential.
2. Searching for the world’s biggest companies within the different industries(sales volume).
2. Would you expect customers who access the company through different channels to have differential values for the company? Why?
1. Can you think of experiments that would allow Otto to make inferences about whether one channel functions as a lead in to another channel?
2. Separate channel functions and differentiate prices to increase short-term profits
1. Integrate channel functions to enhance customer loyalty and long-term profits.
Dynamism in the environment (i.e., frequency of environmental changes
Complexity of an environment (i.e., number and diversity of competitors and buyers)
Level of available resources (needed for innovation and differentiation)
3. how intensively to use each route (i.e., store density).
which types of channels to implement and combine, and
2. Should the campaign stop here? Are there opportunities for BMW to proceed campaigning with the new owners of the Z4? What are some of those opportunities?
1. Explain the likely issues (as discussed in the chapter) that may come up during the Z4 campaign management process.
5. Explain the advantages and disadvantages of the various campaign budget setting methods.
4. Give examples for key performance indicators for the evaluation of campaign success.
3. Explain the ideas around the concept of campaign testing? Do you think that testing in general will become more important in the future? Why or why not?
Describe how you would go about implementing this campaign.
2. Imagine you are the manager of a chain of 25 seafood restaurants in Virginia. The restaurant has a mainstream positioning. You are planning a campaign to attract new clients and your available
1. Explain the three key steps in the management of campaigns.
3. Apply this knowledge to future campaigns. If information is not sufficient, test the important variables to fill the gaps in knowledge.
2. Model relationships between the data gathered, the controllable variables and the campaign results.
1. Record all relevant data about campaign planning, implementation and results.
If the degree of formalization of campaign management is not adapted to the diversity of operations within the company and its size, then campaign execution process won’t be effective.
If top management doesn’t take an active role in marketing planning then it will probably not be an effective system.
Separating the responsibilities of operational marketing and strategic marketing planning will lead to a divergence of short and long term objectives. Concern over short-term results at the
When the marketing planning is undertaken at a functional level and does not integrate with other functional areas of the company, then the campaign will be largely ineffective.
Tests uncover ways to reduce costs.In general, tests help maximize the performance of the campaign.
Tests minimize financial risk and avoid costly errors.
Tests protect the company’s greatest asset (the customers): By using only small samples with each test you will finally give your customers the proven offer.
Testing also stimulates creativity, since it not only provides healthy internal competition but also presents a challenge to the creative team to find ways to beat the control campaign.
Testing augments and validates research.
Testing shows real behavior, because it provides a (close to) real environment in which behavior is validated.
Retain and reward existing customers.
Acquire customers, and
Identify prospective customers,
3. How far should Starwood push its direct offerings to its program members? How can it discover the boundary?
2. What should Starwood do to attract loyalty program nonusers into the program or find out more about the behavior and preferences of this large group?
1. How can a large company such as Starwood exploit customer data while still safeguarding and respecting customer privacy?
2. What are the key objectives of loyalty programs?Which of these objectives provide the strongest competitive advantages?
1. Explain the difference between behavioral and attitudinal loyalty. Provide an example of each.
8. What are the ethical issues that surround loyalty programs? Should the gaming industry be allowed to use loyalty instruments for example?
7. Design a loyalty program for your neighborhood gas station. Describe the incentives.Determine the cost structure. Set benchmarks, and evaluate the profitability of the program across possible
6. Would low-ticket items (coffee, candy, sodas)benefit from loyalty programs? What kind of incentives might work best?
5. How can you measure loyalty? How does loyalty relate to the profitability of a company?
4. Do companies profit by introducing loyalty programs? Is the success of a company’s loyalty program dependent on its industry category?
3. You are a consultant to a credit card organization that wants to establish a loyalty program.The CEO has just read about how most loyalty programs result in money-losing propositions.How do you

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