Concepts: Apply Marketing Metrics

5-20. In what ways could Macy's expect to measure customer lifetime value (CLV) and share of wallet based on data collected within the context of a reward program such as this?

5-21. How would data be collected for each element, and how might management at Macy's use that data to provide loyal customers with a very strong relationship with the firm?

Choices: What Do You Think?

5-22. Ethics CRM relies on data collected from customers to create customized or one-to-one experiences for those customers. Data are collected at various touch points-places in which the customer interfaces with the firm to provide information, such as at a checkout lane, on the phone, on the website, and so on. Do firms have an obligation to explain to customers that they are collecting information from them to populate and drive their CRM initiative, or is it inherently obvious in today's world that such practices are routine? In general, what is your personal viewpoint of database-driven positioning strategies? What are the potential pros and cons to the company and to the customer?

5-23. Critical Thinking Are there any potential challenges that would arise from companies using predictive analysis as a key marketing strategy? What are some examples?

What are the potential benefits to companies

5-27. A study conducted by Adobe found that 77 percent of marketers surveyed believe that data on customer purchase histories can improve marketing performance, yet only 21 percent actually use it. Similarly, 88 percent believe that behavioral data can have a similar impact, but only 20 percent use it.61 These statistics highlight a contradiction between the perception of marketing analytics' value and the actual frequency of execution of marketing analytics. Why do you think this is? If you were in charge of implementing marketing analytics in an organization, what hurdles would you expect to encounter and from whom, and how would you overcome them?

5-28. Do you believe it is right for companies to target a higher (or lower) cost service to a consumer based on a data-driven observation that the consumer possesses characteristics typically associated with a willingness to spend more (or less) money on the related service? Does this constitute a form of discrimination that would make you uncomfortable as a marketer who is exploring the possibility of employing this strategy? What about if you were the consumer on the receiving end of it?