Building Customer Loyalty: Customer Relationship Management and Service Strategies

These flashcards cover key terms and concepts from the lecture on building customer loyalty, focusing on customer relationship management (CRM) and service strategies.

Customer Relationship Management (CRM)

A business philosophy and set of strategies, programs, and systems focused on identifying and building loyalty with a retailer’s most valued customers.

Share of Wallet

The percentage of a customer’s total purchases made from a specific retailer.

Reliability

The accuracy of billing and meeting promised delivery dates in customer service.

Lifetime Customer Value (LTV)

The expected contribution from a customer to the retailer’s profits over their entire relationship.

Privacy Concerns

The degree to which consumers feel their privacy has been violated when retailers collect information.

Data Mining

A technique used to identify patterns in data found in data warehouses, often used in analyzing customer data.

Market Basket Analysis

Data analysis focusing on the composition of the basket or bundle of products purchased during a single shopping occasion.

Frequent Shopper Programs

Programs designed to encourage repeat purchases and retailer loyalty by offering rewards.

Service Recovery

Steps taken by retailers to address customer dissatisfaction and resolve service failures.

Gaps Model

A framework indicating what retailers need to do to provide high-quality customer service by identifying service gaps.