Chapter 15 Customer Relationship Management MKTG

Final Exam Chapter

About what percentage of consumers have changed their minds about buying due to poor service?

78%

Loyal customers bring in up to how much more revenue over time compared to their first purchase?

10 times

How many positive experiences does it take to make up for one unresolved negative experience?

12

It is how many times more expensive to get a new customer than to keep an existing one?

6–7 times

Customer service involves

All activities a firm engages in to satisfy customer needs and wants

The ultimate goal of superior customer service is

Brand loyalty

Customer service policies must include

Two‑way communication and convenience

Customers today expect help

Immediately, any hour, any day

FedEx’s goal for social media customer service is to respond in

Minutes

Fill rate measures

Percentage of an order shipped on time and complete

Perfect order rate measures

Orders filled, delivered, and billed without error

Order cycle time measures

Time from order placement to delivery

Customer satisfaction occurs when

Companies meet or exceed customer expectations

Companies seek to delight customers so they become

Brand advocates

Relationship marketing focuses on

Attracting, maintaining, and enhancing customer relationships

Customer value is defined as

Perceived benefits compared to cost

Empowerment means

Giving employees permission to make decisions to help customers

Service recovery includes

Apologizing, fixing the problem, and checking satisfaction

CRM is a business model focused on

Increasing revenue and profits by focusing on customers

A touch point is

Any point where a customer and company interact

CRM technologies help firms

Track behavior, tailor services, and identify profitable customers

Customer acquisition focuses on

Acquiring the right customers who drive growth

Customer retention focuses on

Keeping satisfied and loyal profitable customers

Customer profitability focuses on

Increasing individual customer margins

Lifetime value analysis compares

Costs of retaining vs. acquiring customers

“Not all customers are equal” means

Customers differ in revenue, cost, and value

Brand evangelists are customers who

Refer many new customers and upgrade frequently

Privacy issues require

Firewalls and constant vigilance