article 3: challenges in managing customer relationships in today's world

Question 1

3 main pillars of CRM

Answer 1

1. customer relationships are stand-alone investments that increase revenue and profit over time
2. customer relationships are like loving marriages in which both parties live happily ever after
3. customer relationship valuation is easy and linear, accounting for acquisition, development and retention

Question 2

key insights that changed CRM

Answer 2

1. Interactions on firm- and customer-level
2. relationship maintenance cost and profitability
3. Relationship types and relationship termination
4. strategic behaviour on both relationship sides
5. multifaceted, complex and difficult valuation
6. Churn prevention and loyalty to product portfolio.