Questions and Answers of Customer Relationship Management

Stimulating customers to use desired channels is a part of what we call the navigation issue.It is a matter that requires optimisation and is actually referred to as a pinball-machine. The customer
What performance indicators would you use in a multichannel environment where the contact centre is responsible for lead generation, sales and customer service, where the internet supports all phases
What channel conflicts can you think of between telephone, the internet and the direct sales channel?
What makes it difficult to organise the efficient and effective use of channels to combine a seamless customer experience, accessibility and good financial performance?
Explain what is meant by the ‘click, call, face’ model.
The challenge in many multichannel innovation programmes is to combine goals that appear to conflict. Lowering costs while improving accessibility and increasing the customer experience.Think of four
When determining the current multichannel strategy, one can anticipate future requirements by looking at lead users or younger customers. Take a random organisation that you know and look at how it
What might be the reasons organisations are very careful to adjust their multichannel environment?Name at least three and explain them.
Many companies develop channels in isolation. They set them apart from all other channels.The internet is very often a separate department. What might be the reasons that companies do this? Name at
Devise methods that a specific organisation may use to surprise, appreciate, inform and activate customers within the framework of the relationship policy.
What is an easy method for determining what stage a specific relationship is in?
What type of possible relationship exists between the quality of the customer database and the existence of a low point in the relationship during the growth phase?
Creating a distinction between the communication and service levels of so-called gold, silver and bronze customers can lead to irritation among customers. How can this be prevented?In your opinion,
examines customer knowledge. Distinctions are made in that chapter between the customer as buyer, user and person or organisation. Can you see the possibilities of dividing the customer database into
Chapter
Some companies do not categorise into customer groups but instead make a distinction between groups on the basis of the effects that can be achieved within them. In this way, the potential profitable
What criticisms can you offer for categorising customers into groups according to their current and/or potential profit contribution?
In Figure 12.3 a distinction is made between customers and non-customers. It is suggested that certain indicators can be used to segment non-customers in the same way as customers for whom an
Why is it so important for the first requirement in designing the relationship policy to be the improvement of the size and quality of the customer database? Explain your answer.
Create a pricing structure for a publisher of loose-leaf magazines which has chosen to offer its content via various channels. Remember that the publisher previously sold its magazines exclusively on
Which recommendations would you give to Amazon.com to help it realise a price premium programme for loyal customers?
Why is the application of revenue management necessarily and by nature connected to the existence of capacity restrictions?
Formulate the outlines of a precision pricing policy for a four-star hotel in your country’s capital designed to accommodate business guests as well as tourists from all over the world.Explain your
How does IT make it possible to implement a precision pricing policy?
What limits the applicability of mass customisation?
What are the different forms of mass customisation identified by Gilmore and Pine? Think of your own example for each form.
In order to realise the ‘long tail’, in many cases one needs to activate and facilitate the second-hand market. Please indicate why this is important and what the consequences are for the
The unique personal customer experience takes place in surroundings where consumers are not alone, but with others. The social and physical context has a huge influence on the product or service
Krishnan and Prahalad state that striving for mass customisation does not offer a prospect for future lasting competitive advantage. It is characteristic of these organisations to compete against
Management teams can be created (Figure 10.3) which are responsible for the development and distribution of knowledge throughout several areas. Formulate ten such teams for an organisation with a
Determine what the ideal learning organisation would look like for an organisation with a CRM strategy and CRM system.
In an organisational context, there are several factors that often hinder learning. Name and illustrate five of these.
Statement: in experiments it is recommended that only parts of the marketing approach be changed, because the effects can otherwise not be attributed to the stimuli.(a) Do you agree or disagree with
In experiments, different relationship policies can be tested. Think of five experiments you would consider and highlight what knowledge or insight they help you build.
Develop an overview for an imaginary company in which you highlight the essential relationships between life-time value at one end and marketing activities and expenses at the other.
What criticism can you give to Buford’s customer value calculation?
Life-time value is often calculated per so-called year-echelon (per segment). What would be the explanation for this?
Why is it difficult to attribute internal expenses to individual customers?
What does the height of the discount rate for interest depend on?
What limitations are associated with the outcomes of a cross-sell analysis made using historical data?
Why will only the business rules found on the drawn curve in a Pareto analysis be used to select the people to be approached for a cross-sell activity?
Will a deep-sell analysis proceed according to the same pattern as the cross-sell analysis outlined, or do you expect differences? Substantiate your answer.
Under what circumstances will deep-selling produce a more economically desirable result than cross-selling? Explain your answer.
Give a description of deep-selling.
How can the outcomes of a retention analysis be used in a marketing campaign?
Why should the retention model developed for active customers be different from that for passive customers?
Why is it important when performing a retention analysis to include just as many ‘quitters’ as‘stayers’ in the data set? Explain your answer.
The quality of the retention model to be developed is, to a great extent, dependent upon the variables to be included. In your opinion, which considerations play a role in the creation of these types
Banks have very few customers who end the relationship. People are generally not quick to close a current account. Does this mean that a retention analysis for a bank is of little use? Or do you see
Describe how a response gain chart can be used to make a selection of people and organisations which are to be approached with a marketing activity within the scope of a campaign.
Three techniques have been mentioned frequently for the purposes of compiling the list for a marketing campaign.(a) What are the disadvantages associated with segmentation created on the basis of an
How can results from qualitative research be used to enrich the profile of individual customers?
What differences in segmentation arise between the business and the consumer markets?Explain your answer.
Select a market and describe the path you would like to take to arrive at segmentation for strategic marketing objectives.
What limitations will the marketer continue to encounter, even in an organisation with professional analysis capacity, in expanding customer knowledge through data analysis? Explain your answer.
Explain how neural networks work.
What is the difference between statistical and data-mining techniques? When might the latter be advantageous?
What is the purpose of the distinction made between a training and a validation set?
Indicate in what way a tour operator might measure the booking behaviour of its customers.
Which phases in the analysis process in particular require the marketer’s contribution?
Describe the analysis process involved in setting up a retention analysis.
Name four typical analysis topics within the framework of a CRM policy to be implemented.
How can the collaboration between data analysts, database managers (insofar as these do not also take on the task of analysis themselves) and marketers be improved? Suggest a number of creative
The traditional shopkeeper who still maintains personal contact with their customers is considered to have more (implicit) knowledge of their customers than the CRM manager with expensive software
How does the European Personal Data Protection Act influence how external data may be used (see also Chapter 5)?
Motivaction is a market research firm that provides data with which the customer may be further profiled as a person, instead of as a buyer and user. Name three advantages and three disadvantages
Logfiles with data on clickstreams and internet behaviour bring new challenges with them.Describe these challenges and indicate how a company may best deal with them.
criteria for a company of your choosing with which the customer profile may be developed within the framework of the relationship policy.(b) Indicate the source from which these data are likely to be
It is a challenge for marketers to construct a customer profile with a minimum of indicators and/or criteria which none the less provides a rich profile.(a) Formulate
The commercial value (quality from the point of view of the supplier as user) of external lists(name–address–city lists) is usually lower than that of internal lists. What explanation would you
The experience in direct marketing is that behavioural traits better predict the response to a direct marketing campaign than characteristics which are related to attitudes (including satisfaction),
Which measures would you recommend a company such as a holiday park use to manage the intrinsic quality of the data which allows it to identify its customers?
Unjustifiably, efforts to improve the intrinsic data quality are sometimes equated with de-duplication. What is the difference between the two?
The quality of the customer data may be approached from a variety of angles. It is said that the intrinsic quality approach is superior. Can you explain this in more detail?
Why are the data used to identify the customer considered to fall under the infrastructure of a company? What consequences does this have for the manner in which this database is maintained?
Why does the nature of the privacy issue change in the knowledge and network economy?Support your answer by providing two examples.
According to the European privacy legislation, you, as customer, are permitted to ask a company which details of your data it is retaining in its database. Approach a company of which you are a
The maturity of the customer intelligence function can be characterised by an evolutionary path. It appears in practice that every success, and the step to the next maturity level, is followed by a
Choose an organisation of which you are a customer.(a) Describe yourself as a customer and provide concrete information on which data must be registered in order to be able to describe you as a
The data which are received by companies via e-mail and the internet on the identity of customers apparently have a relatively low level of reliability.(a) What could be the underlying reasons for
Why is it so difficult to base the value of data quality on potential future customer transactions?
Specify the wastes that occur as a result of a lack of data quality.
You are a customer intelligence manager and would like the approval of senior management for investment in improving data quality. You have ten minutes to present your argument to the board. Outline
In the article ‘Preventing the premature death of relationship marketing’, the premature demise of the customer intimacy strategy is portrayed. What will have to be done to prevent this from
In this chapter, an example was provided of a Japanese restaurant which hoped to win and bind customers to its formula.(a) Formulate the specific critical success factors for this company from the
Within a relationship-oriented organisation, everyone must have a current, correct, complete and consistent image of the individual customers. Reality often tends to deviate from this ideal, in spite
What is your opinion of the idea of a customer ‘taking a seat’ on the supplier’s account team? Name three aspects on which your opinion depends and explain them further.
Formerly state-owned companies are sometimes characterised by an insufficiently customeroriented culture.(a) Name an example of this type of company and describe how this is the case.(b) Formulate
To what extent is the organisation of a supermarket equipped to implement a customer intimacy strategy? Explain your answer.
In practice, CRM is cited as having the following important advantage: ‘thanks to CRM, we are able to institutionalise the relationship with customers’. What do you suppose is meant by this?
Drawing up a mission statement is simple compared with implementing one. Think of a number of concrete measures to promote the internalisation of the mission statement. The internalisation indicates
Gather the mission statements of a number of companies and evaluate to what degree these do justice to the objective of creating a relationship-oriented organisation. Justify your answer.
What types of demand does customer intimacy place on the organisation? Provide a description of the relationship-oriented organisation.
What are your recommendations for Starbucks in the US if you want to build a sustainable company that is expanding in line with shareholders’ expectations?
Would you characterise Starbucks’ strategy as a defensive or offensive strategy? Give arguments for your choice.
Treacy and Wiersema distinguish between three value disciplines, i.e. operational excellence, customer intimacy and product leadership. Which value discipline(s) has Starbucks applied in recent
Reichheld has studied the effects of reducing customer churn on customer profitability in a variety of markets (see Figure 3.3). A substantial difference may be observed between the life insurance
What explanation do you have for the fact that the ‘blow-ins’ of a service provider in the high-tech industry contribute more to profitability than loyal customers do?
Can you explain why investments in customer satisfaction lead to a higher return on investment as well a reduction in risk?
Is it possible to combine the deployment of a customer intimacy strategy and the maintenance of an indirect system of distribution? Explain your answer. If your answer is yes, provide an example.

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