Big Data & Marketing Analytics Ch 5 Exam Questions With Verified Answers

Big Data & Marketing Analytics Ch 5 Exam Questions With Verified Answers What is CRM? - answerSystematically tracking consumers' preferences and behaviors; tailored value propositions; firms get "up close and personal"; capture information at each customer touchpoint What is an example of CRM in action? - answerAmazon: very focused on their customers; "people who bought this looked at this"; have information based on your previous orders; Amazon Prime: value: instantly credit a return and gives you 30 days to return the product To help reduce cognitive load and clerical effort, what do firms display? - answerMarketing automation What is marketing automation? - answerA group of systems and technologies that can be used to establish a set of rules for handling different marketing related processes in an automated fashion; can relate to the collection and processing of data as well as execution of different customer-oriented actions; greater automation of analytical and operational marketing processes is not just desirable in today's competitive marketplace; it's a necessity What are the three critical customer-related metrics that CRM facilitates? - answerShare of customer, customer lifetime value (CLV), and customer prioritization What is share of customer? - answer% of a customer's purchases in category over time; easier / less expensive to keep current customer than to acquire new one; 5 - 10x more expensive to sell new customer; increase Share of Customer, rather than market share: build brand loyalty and upselling What is CLV? - answerRepresents how much profit a firm expects to make from a particular customer, including each and every purchase he or she will make from then now and in the future; this metric describes the potential profit that a single customer's purchase of a firm's products generates over the customer's lifetime; number years times value per year What is customer prior