5. Semester_CRM_A.2

Question 1

What is Customer Relationship Management (CRM)?

Answer 1

• operational: analyzing and using marketing databases and leveraging communication technologies to determine corporate practices methods
• strategic: selecting customers that a firm can most profitably serve and shaping interactions between a company and these customers.

Question 2

What are the main targets of CRM?

Answer 2

• maximization of customer lifetime value
• focus on customers that offer the highest value to the company
• overall: maximization of aggregate customer lifetime values (Customer Equity)

Question 3

What is Customer Value?

Answer 3

• overall economic value of a customer from a sellers point of view
• i.e. his direct and indirect contributions to reach a suppliers targets
• monetary and non-monetary components

Question 4

What is Customer Lifetime Value (CLV)?

Answer 4

• sum of cumulated future cash flows – discounted using the weighted average cost of capital (WACC) – of a customer over their entire lifetime with the company. →Barwert
• monetary components only

Question 5

What is Customer Equity (CE)?

Answer 5

-sum of individual lifetime values of the customer base in net present value

Question 6

How does the Customer Value Model of Diller look like and what aspects does he mention?

Answer 6

1. Security
   - Base Value (Retention)
   - Information Value (Feedback)
2. Growth
   - Penetration
   - Cross Selling Value
   - Referencing Value
3. Profitability
   - Price Premium
   - Customer acquisition and loyalty costs
   - Transaction costs

Question 7

How does the Customer Lifecycle Model look like and what phases does it include?

Answer 7

Question 8

What’s Media Communication?

Answer 8

• one-to-many communication
• business tries to contact unknown people
• these people respond with different response-elements (coupon, response card, phone number, URL)

Question 9

What’s Direct Marketing?

Answer 9

• one-to-one communication

Question 10

What’s Dialog Marketing?

Answer 10

• dialog (two-sided) communication requiring dialog adequacy of communication media which is typically given for online media

Question 11

What are the instruments in direct/dialog marketing?

Answer 11

• dialog method
• personal selling
• postal mailing
• Email
• Telephone
• Social Media
• Mobile Marketing
• Live Communication

Question 12

What options are in the dialog method?

Answer 12

1. Amplifier
   - respond with yes
   - e.g.: careful opening & unfolding, continue reading, making sure not to be disturbed,…
2. Filter
   - respond with no
   - e.g.: sloppy opening of envelope, approaching waste-paper basket,…

Question 13

What are Decision Making Fields in personal selling?

Answer 13

• sales and organizational corporate structure
• multi personal teams through selling center, engaging with a buying center
• priorization of customer contacts and contact intensity
• > Personal Selling typically B2B (otherwise B2C)

Question 14

What are Decision Making Fields in postal mailings and emailing?

Answer 14

• size & design of advertising material depend on shipping costs
• target group
• timing for sending (depending on shipping method)
• frequency of sending mailings
• direct mailing design:
• > design of envelope
• > structure of letter
• > graphics
• > offers
• > direct mailing design opens a continuous field of work called “direct mailing optimization”
• > Postal Mailing is the dialog marketing classic and Email is the lead medium in dialog marketing

Question 15

What’s the Process for target group testing?

Answer 15

1. Selection of broad campaign potential (e.g. inactive 1-5 years)
2. Segmentation (inactive > 1 year, inactive > 2 years,…)
3. Holdout sample selection (e.g 80% of each segment in campaign & 20% of each segment in hold-out sample)
4. Determination of net effects (e.g. for each group difference in ticket sales -> calculation of net campaign value)
5. Automation of winning campaign (e.g. systematic targeting of all inactive customers)

Question 16

Whats the Difference between inbound & outbound calls?

Answer 16

• Inbound Call = Contact calls in
• Outbound Call = Contact is called

Question 17

What are Decision Making Fields in telephone marketing?

Answer 17

• internal vs. external call centers
• skills needed: consulting, problem solving,sales,…
• outbound: calling times, leaving voice message, dropping an email same time,…
• inbound service level: opening hours, availability, waiting times,…
• target group
• dialer and callcenter softwares
• recording of calls
• > Call Centers no longer limited to telephone communication (work across different media handling phone calls, emails, chats, forums,..)

Question 18

Definiton Social Media

Answer 18

= interaction among people in which they create, share or exchange information and ideas in virtual communities and networks

Question 19

Leading questions for platforms?

Answer 19

• Can i reach out my goals with this platform?
• Is this platform relevant for my target group?
• Do I have ressources to react?

Question 20

Leading questions Content

Answer 20

1. Which kind of Content can I offer?
   - owned media (posts on own platform)
   - paid media (facebook sponsored posts, sponsored tweets,..)
   - earned media (posting on other plattforms, without getting paid -> blogger relations,..)
   - shared media (people post about company and discuss -> facebook, twitter, linked-in,..)
2. Which content-techniques can I use?
   - Hashtags
   - cooperations
3. When and how often do I use different forms for posts
   - (live) video
   - picture
   - partner posts
4. How do I write the posting? (Which wording do I use)
   - direct question
   - fill in the blank
   - meme
   - giveaway
5. How can I promote my posts (without ads)
   - link an external partner
   - external hashtags
   - create our own hashtag
   - repost successful posts

Question 21

Leading questions Advertising

Answer 21

• Which advertising formats do I want to use?
• Targeting?
• Timing and Intensity?

Question 22

What are different types of live communication

Answer 22

• Brand lands
• Trade Shows / Events

Question 23

What are formats of Brand Lands?

Answer 23

• Flagship stores
• theme parkes
• brand-/corporate museums
• customer centers

Question 24

What are Formats of Trade Shows / Events?

Answer 24

• invitations to trade shows stands
• stand or customer parties
• customer congresses/meetings/seminars
• product presentations

Question 25

What are Functions of live communication?

Answer 25

- instrument of differentiated communication - platforms for personal interaction between companies and customers - authentic customer integration instead of anonymous mass communication - recognition through multi sensual experience - relatedness through collective experiences - building image through engagement