06 Flashcards
(17 cards)
Front
Back
Customer Centricity
Focus on the customer as the core of any consideration. Understand customer needs and deliver tailored offers.
Customer Mix
Balance between customer acquisition and customer retention/development.
Customer Prioritisation
Increases efficiency in acquisition and retention by focusing on top-tier customers without neglecting others.
Customer Segmentation
Divides customers into groups based on similarities relevant to marketing.
Customer Profiling
Defines the ideal customer(s) based on unique characteristics.
Customer Lifetime Value (CLV)
Measures the long-term profitability of individual customers to allocate resources efficiently.
Customer Equity
Future income stream from existing and future customers over a prediction horizon.
Customer Acquisition
Activities to win new customers or expand customer circle; requires target group identification and attention.
Win-back Strategies
Focus on regaining lost customers by addressing reasons for churn and targeting high-value former customers.
Customer Retention Importance
Retained customers are more profitable due to increased purchases, lower management costs, referrals, and premium willingness.
Customer Retention Strategies
Use financial incentives, social bonding, enhanced customisation, and structural bonding to retain customers.
Customer Development
Involves cross-selling, up-selling, and increasing purchase frequency to grow customer value.
Customer Cohorts
Groups customers based on a common event/time, providing insights into dynamic patterns in customer behaviour.
Triangle Cohort Chart
Visual tool for tracking customer retention over time across cohorts; analysed horizontally, vertically, and diagonally.
Ethical Issues in Customer Mix
Includes discrimination and privacy concerns; GDPR formalises data consent and transparency.
Customer Mix Management
Involves balancing acquisition and retention efforts based on CLV and customer cohort analysis insights.
