CRM review

What is customer acquisition?

Customer acquisition is the process of gaining new customers for a business by identifying, attracting, and converting potential buyers into paying clients.

What type of customers do businesses seek to acquire?

Businesses should seek to acquire customers that are likely to be profitable over time.

When is customer acquisition most important?

Customer acquisition is most important during new product launches and for new business start-ups.

What is a new customer?

New-to-category customers are those who have identified a new need or discovered a new solution for an existing need.

Define 'open non-customers'.

Open non-customers are potential customers who prefer alternatives to a current offer but have not yet switched.

What is one way marketers can address perceived risk for first-time customers?

Marketers can offer money-back guarantees, price-matching, or product-replacement offers.

What does 'cross-selling' mean?

Cross-selling refers to selling additional products or services to an existing customer.

What is a customer touchpoint?

A customer touchpoint is a direct or indirect interaction between a customer and a brand.

What does the 80/20 rule imply in customer relationships?

The 80/20 rule implies that 20% of customers generate 80% of the total value for the company.

What is customer lifetime value (CLV)?

Customer Lifetime Value (CLV) estimates the revenue a customer generates over their lifetime with the company.

What are two examples of positive customer retention strategies?

Examples include loyalty programs and exceeding customer expectations.

What is the primary goal of a customer retention strategy?

The primary goal is reducing customer defections.

What is the purpose of the customer strategy cube?

To prioritize and develop strategies for different types of customers based on their value and needs.

Name one criterion used for customer segmentation.

Examples include demographics, purchase behavior, or geographic location.

What does customer intimacy involve?

Customer intimacy involves tailoring solutions to meet individual customer needs.

Provide an example of a company known for operational excellence.

Companies like Walmart and McDonald’s are known for operational excellence.

What are the three main sources of customer value?

The three main sources are operational excellence, product leadership, and customer intimacy.

What is event-based or trigger marketing?

Event-based or trigger marketing targets customers based on specific events or triggers, such as a birthday.

What might influence a company's marketing strategy if 80% of revenue comes from 20% of customers?

The company should prioritize resources to nurture and retain the top 20% of customers.

What is the main goal at the advocate stage of the loyalty ladder?

To turn customers into brand promoters who refer others and speak positively about the company.