Retailing Management Study Set 4

Business

Quiz 11 :

Customer Relationship Management

Quiz 11 :

Customer Relationship Management

Question Type
search
arrow
How would a retailer use transactions, customer contacts, customer preferences, descriptive information, and responses to marketing activities in its customer database
Free
Essay
Answer:

Answer:

Retailers use each of these pieces of data to establish and enhance relationships with customers. Transaction data, including purchase date, type and price and customer contact data showing the number and type of interactions that customer has with the retailer allows the retailer to recognize its "best customers". Customer preference data allows the retailer to anticipate its customers' needs and wants, and to provide for them without being asked. This contributes to a personalized experience for each customer. Descriptive information, including demographic and psychographic data, allows the retailer to identify segments of customers with similar interests and needs. These segments then become the focus of special programs or promotions tailored to the segment. Responses to marketing activities are determined by monitoring transactions and customer contacts. This way the retailer can determine which programs are most effective with various customer segments and individual customers.

Tags
Choose question tag
close menu
arrow
A CRM program focuses on building relationships with a retailer's better customers. Some customers who do not receive the same benefits as the retailer's best customers may be upset because they are treated differently. What can retailers do to minimize this negative reaction
Free
Not Answered

There is no answer for this question

Tags
Choose question tag
close menu
arrow
Think of one of your favorite places to shop. How does this retailer create customer loyalty and satisfaction, encourage repeat visits, establish an emotional bond between the customer and the retailer, know the customer's perferences, and provide personal attention and memorable experiences to its best customers
Free
Essay
Answer:

Answer:

Retailers have any number of practices in place to create these positive relationships with customers. One effort toward building these relationships is establishing a truly valued frequent shopper program. A truly valued program is one the retailer's consumers understand and appreciate as providing them direct benefits through an easily understood program. Many of the frequent shopper programs now offer tiered benefits, providing higher levels of benefits to the retailer's "best customers".?
?Retailers can also create customer satisfaction and loyalty be providing "best customers" with special treatment. These retailers make their customers comfortable and often go above and beyond typical customer service levels to show these customers how valued they are from the retailer's perspective. An example is an exclusive hair salon providing full service and a full staff at no extra charge on a Sunday afternoon the salon is normally closed to provide hair, manicure and makeup services for a "best shopper" bride and her attendants on her wedding day.
?Personalization is another technique retailers use to foster emotional connections and loyalty with customers. One-to-one relationships, like a personal shopper service, allow the retailer to connect with each customer's needs and wants directly. Internet retailers often use this technique providing purchase suggestions and tailored merchandise information each time a "best shopper" logs onto the retailer's web site.
?Finally, retailers create communities of shoppers to foster connections and loyal relationships. The pet store sponsoring a "Happy Hour" for customers and their furry friends to socialize with one another, the ski shop offering lessons, a bulletin board posting local races, and a blog about local ski conditions and the toy store sponsoring playground activities at the local elementary school are all examples of retailers cultivating a relationship with and among their customers that goes beyond the merchandise or service purchase relationship.

Tags
Choose question tag
close menu
arrow
Why do customers have privacy concerns about frequent shopper programs that supermarkets offer, and what can supermarkets do to minimize these concerns
Essay
Answer:
Tags
Choose question tag
close menu
arrow
Why do retailers want to determine the lifetime value of their customers How does past customer behavior help retailers anticipate future customer retention
Essay
Answer:
Tags
Choose question tag
close menu
arrow
Why do some customers have a low or negative CLV value What approach can retailers take with these customers to minimize their impact on the bottom line
Essay
Answer:
Tags
Choose question tag
close menu
arrow
What are some examples of opportunities for add-on selling that might be pursued by (a) travel agents, (b) jewelry stores, and (c) dry cleaners
Essay
Answer:
Tags
Choose question tag
close menu
arrow
What are the different approaches retailers can use to identify customers by their transactions What are the advantages and disadvantages of each approach
Essay
Answer:
Tags
Choose question tag
close menu
arrow
Which of the following types of retailers do you think would benefit most from instituting CRM program: (a) supermarkets, (b) banks, (c) automobile dealers, or (d) consumer electronic retailers Why
Essay
Answer:
Tags
Choose question tag
close menu
arrow
Develop a CRM program for a local store that sells apparel with your college's or university's logo. What type of information would you collect about your customers, and how would you use this information to increase the sales and profits of the store
Essay
Answer:
Tags
Choose question tag
close menu
arrow
What is a Customer Relationship Management (CRM) program Describe one CRM that you have participated in as a customer.
Essay
Answer:
Tags
Choose question tag
close menu