ME Month 2 Session 2 Flashcards
The principles of stakeholder management and customer relationship management (CRM), both internal and external, to facilitate effective cross-functional relationships internally, and channel and customer relationships externally. (20 cards)
What are the principles of stakeholder management and customer relationship management (CRM)?
Facilitate effective cross-functional relationships internally, and channel and customer relationships externally
K3 refers to the knowledge level expected in the learning outcomes.
Define Customer and Stakeholder Engagement.
Repeated interactions that strengthen the emotional, psychological or physical investment a customer has in a brand
Chaffey & Ellis-Chadwick (2019, p509)
What are the benefits of engaged customers?
- Purchase more
- Refer more
- Demonstrate loyalty
What is the purpose of Relationship Marketing?
To establish, maintain and enhance long-term relationships with customers and other parties so that the objectives of both parties are met
Gronroos (1991), cited in Kotler and Armstrong, 2008
How does Transaction Marketing differ from Relationship Marketing?
- Focus on single sale
- Orientation on product features
- Short time-scale
- Little emphasis on customer service
- Limited customer commitment
- Moderate customer contact
- Quality is primarily a concern of production
What are the key focuses of Relationship Marketing?
- Focus on customer retention
- Orientation on product benefits
- Long time-scale
- High customer service emphasis
- High customer commitment
- High customer contact
- Quality is the concern of all
Why are existing customers considered valuable?
- They involve no acquisition cost
- Buy broad range of products due to familiarity
- Cost less to service
- Recommend you to others
- They may be willing to pay a higher price for goods/services
- Represent a reduced cost of sales
What are the four dimensions of relationship marketing?
- Bonding
- Empathy
- Reciprocity
- Trust
What is the Ladder of Loyalty?
- Advocate
- Partner
- Supporter
- Client
- Customer
- Prospect
Christopher et al, 2002 (cited in Gledhill, 2010)
Differentiate between the types of loyalty.
- Emotional loyalty
- Price loyalty
- Incentivised loyalty
- Monopoly loyalty
What does the Commitment-Trust Model include?
- Relationship commitment
- Trust
- Co-operation
- Relationship termination costs
- Relationship benefits
- Shared values
- Communication
- Opportunistic behaviour
What factors can boost or destroy relationships?
- Acquiescence
- Propensity to leave
- Co-operation
- Functional conflict
- Decision making uncertainty
List the core principles of Customer Relationship Management (CRM).
- Frequency
- Timeliness
- Accuracy
- Relevancy
- Personalisation
- Value
What are the benefits of CRM systems?
- Cost-effective targeting
- Permission marketing
- Mass customisation of marketing messages
- Increased depth and breadth of information
- Deeper customer understanding
- Lower costs
- Delivering loyalty programmes
- Opportunities for gamification
What are the building blocks for CRM success?
- Vision
- Strategy
- Value customer experience
- Collaboration
- Processes
- Information
- Metrics
- Technology
What are the trends in CRM applications?
- Operational CRM
- Analytical CRM
- Social CRM
- Software-as-a-service CRM
- Sales applications
What are the benefits of Social CRM?
- Listen to the Voice of Customer
- Get involved in the conversation
- Handle complaints
Define Database Marketing.
Helps achieve the dynamic dialogue of lifecycle and permission marketing
What does CRM technology platforms support?
Using marketing automation to support relationship building
What are examples of using Marketing Automation for relationship building?
- Welcome emails
- Onboarding series
- Abandoned baskets
- Downloadable gated content
- Follow up with most engaged contacts
- Lead nurturing
