CSR 282 Exam 3 Study Guide Notes

General Data Protection Regulation (GDPR)

A law designed to secure data and protect the privacy of EU and EEA citizens by giving them control over their personal data and streamlining international business regulation.

Children’s Online Privacy Protection Act (COPPA)

U.S. law regulating the collection of data from children under 13; requires parental consent for online services to collect or use children’s information.

Opt in / Opt out

Opt in" means a customer must give permission to receive communications or services; "Opt out" means they must decline to stop them.

Expanded need set

Additional needs beyond the basic product, including services, support, and information.

Business Rules

Guidelines that dictate how processes are configured for different customers.

Pine & Gilmore’s 4 Approaches to Mass Customization

Four strategies to deliver personalized products at scale (exact types not specified in your guide).

Learning Relationships Algorithms – Basic

Trending items, Similar items, Recently published, Soon to expire, Co-browsed, Co-buy.

Learning Relationships Algorithms – Advanced

Collaborative filtering, Decision trees, Text analysis, Contextual analysis.

customer lifetime value (LTV)

The total value a customer brings over their entire relationship with a company

Return on customer (ROC)

Measures the value created from a company’s customer base.

Customer Equity

Total combined customer lifetime values across all customer

Proxy Varaibles

that represent unobservable factors affecting customer behavior.

Proxy variables

Indicators used to estimate LTV when direct data isn't available (e.g., RFM, volume, duration

RFM

Recency, Frequency, Monetary value — used to evaluate customer behavior and value.

Short-termism

Business focus on immediate gains over long-term customer relationships.

Short term value

Immediate purchases and profits

Long-term value

Loyalty, Future purchases, and referrals

Farming analogy

Good farmer = long-term focus and sustainability; Bad farmer = short-term gain at long-term cost.

IDIC model

Identify, Differentiate, Interact, Customize – key steps in relationship building.

Customer Insight/Experience

Understanding how customers feel and behave at every touchpoint in their journey.

Analytical CRM

Uses data and analysis to improve decision-making and customer targeting.

Operational CRM

Automates customer-facing processes like sales, service, and marketing.

Customer Journey Touchpoints

All interactions a customer has with your brand, which shape their perception and satisfaction.

Long Term customer relationships

Strategic retention efforts aimed at building customer equity and sustainability.