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The primary goal of marketing in the context of interaction is generating feedback from the customer Requiring a customer to do something beneficial for the company, and then rewarding the customer for that action is an implicit bargain Customer interaction is the responsibility of sales, marketing, customer service The customer experiance dimension addressed by a touchmap is logical An effective Future State Touchmap tales into account all of the best practices including treating different customers differently, unique customer identification at all touchpoints, never asking for the same information twice Creating a "front door" for a company's Web site is an example of differentiating custoemrs by needs The following actions are likely to increase custoemr trust making an explicit bargain, ensuring sales and channel parnets to have the same privacy protection policy and providing a clear privacy policy for customers to review In a customer-strategy enterprise, what is the primary reason to use social media to build customer relationships The benefits of using social media increased buzz around a brand, product, potenitally increasing sales across channels, imporved search results from a customer conversation about an organization driving more traffic to company's website, customers helping other customers online, reducing service costs Another term for contributing to open source projects crown service The average percentage of users who participate in an online community 10% The 1-9-90 dynamic is most akin to a power law distribution When recruiting super-users, the most effective rewards will be social and free products The blog that draw the most readers tend to have all of the following characteristics employees post about their personal lives, content monitored as little as possible, rules applied to avoid legal issues According to the authors, what common interest do enterprises and custoemrs now share in the context of privacy protecting customer information A customer based enterprise must learn to balance both privacy and personalization One way to summarize the seemingly contradictory data about consumer privacy attitudes is consumers want both maximum conveinance and maximum privacy According to Seth Godin, the most valuable commodity is attention For those building the value of customer base in a company, privacy means getting information from custoemrs who are comfortable giving it and protecting custoemr data as a competitive asset The two categories of business concerns about privacy are individual provacy and data security opt-in and opt-put policies consumer groups favor opt-in, while industry groups favor opt-out Creating privacy pledge specify how personal information will be used in the company, specify how personal information will NOT be used by the company and state how a customer can order the company to stop collecting information and/or purge her information file The organization that endorses each customer's control of his own information and identifies groups and companies that meet its privacy protections requirements TRUSTe On average an American shopper has to choose among______ times as many products as he actually buys 100 The mass production of goods and services in lot sizes of one is known as mass customization and mass configuration The demand chain includes all of the following except production the two kinds of customization that provide the greatest competitive advantage are collaborative and transparent Which of the following characterizes mass customization vs mass production demand chain management What primarily drives the success of mass customization customer collaboration Which company would benefit least from creating value streams bookseller Customers create long-term value because they have memories The actual economic value of any business enterprise can be measured in terms of the discounted net present value of the future stream of cash flow Traditional measures of financial success emphasize prioritizing short-term value over long-term value Legacy metrics include quarterly product sales, number of new customers aquired, return on investment Explains why companies tend to focus on short term-performance the investment community's obsession with short-term performance and companies feel powerless to change Customer equity includes the LTV of present and future customers Losing a customer's business due to circumstances beyond company's control is customer attrition Factors in defining customer equity acuiring more customers, more valuable customers, reducing customer attrition Value harvestors are companies whose customer value rate is below their cost of capital Predicitive modeling includes devising an equation for LTV that includes data on measurable behaviors, identifying the most predictive variables currently avaliable, generating a second equation to predict individual customer's LTV This represents lifestyle changes relevant to pridicting LTV change a privatly held business goes public, a customer earns an advanced degree, a customer's health status changes In the interactive age, what drive the central engine of competition customer information The metaphor of "data mining" captures creating predictive and descriptive models to support decision making, exploring and analyzing large quantities of data to discover meaningful patterns, extracting and presenting new knowledge selected from databases for actionable decisions Verizon Wireless discovered this benefit from customer analytics reduced marketing costs "dirty" data can mean expires, irrelelant, nonsequential This dictates most whether a company would benefit from customer analytics whether the company generates large amounts of customer-specific information The second stage in evolution of CRM software is SaaS CRM The purpose of customer analytics is develop a deeper relationship with the customer Key questions for a compeny transitiong to a customer-strategy enterprise Who will be reposible for keeping and growing each customer, who will be responsible for building short-term and long term customer value, by what criteria will success be measured, reported, and used for compensation Ways a customer-strategy enterprise might meet the goal of maximizing the customer base retaining profitable customers and growing them, eliminating unprofitable customers, customizing products, prices, services, and or communications for each customer When talking about using satisfaction as a proxy for measuring loyalty loyal customers are likely to be satisfied, but not all satisfied customers will be loyal Competitive advantage in using customer information means outperforming rivals in captuing, collating, retrieving The highest level of consciousness in the development of the organization is external cohesion The biggest obstacle for companies making trasition to becoming a customer- strategy enterprise Relationship governance In customer-strategy companies, capabilities manager are most akin to product managers