Chapter 11 Customer Relationship Management

add-on selling
offering and selling more products and services to existing customers to increase the retailer’s share of wallet with these customers
biometrics
measures human characteristics such as a person’s hand geometry, fingerprints, iris or voice
cookies
computer text files that identify visitors when they return to a website
customer database
the coordinated and periodic copying of data from various sources, both inside and outside the enterprise, into an environment ready for analytical and informational processing. It contains all of the data the firm has collected about tis customers and is the foundation for subsequent CRM activities
customer lifetime value ( CLV)
the expected contribution from the customers to the retailer’s profits over his or her entire relationship with the retailer
customer loyalty
customers’ commitment to shopping at a store
customer relationship management ( CRM)
a business philosophy and set of strategies, programs, and systems that focuses on identifying and building loyalty with a retailers most valued customers
data mining
technique used to identify patterns in data found in data warehouses, typically patterns that the analyst is unaware of prior to searching through the data
80-20 rule
80 percent of the sales or profits come from 20 percent of the customers
frequent shopper program
a reward and communication program used by a retailer exposes as much of the product as possible to catch the customer’s eye
loyalty program
a program set up to reward customers with incentives such as discounts on purchases, free food,gifts or even cruises or trips in return for their repeated business
market basket analysis
specific type of data analysis that focuses on the composition of the basket ( or bundle ) of products purchased by a household during a single shopping occasion
1-to-1 retailing
developing retail programs for small groups or individual customers
opt in
a customer privacy issue prevalent in the US. Takes the perspective that personal info is generally viewed as being in the public domain and retailers can use it in any way they desire. Consumers must explicitly tell retailers not to use their personal information
opt out
a customer privacy issue prevalent in the US. Takes the perspective that personal info generally viwed as being in the public domain and retailers can use it in any way they desire. Consumers must explicitily tell retailers not to use their personal information
retail analytics
the application of statistical data analysis techniques to improve retail decision making
retail brand community
a group of customers who are bound together by their loyalty to a retailer and the activities in which the retailer engages
RFM analysis
A way of analyzing and ranking customers according to the recency, frequency, and monetary value of their purchases.
share of wallet
the percentage of the customer’s purchases made from a particular retailer