CSR 282-exam 4

Purdue University

implicit bargain

understood but not clearly stated

implicit bargain

implicitly providing value to a customer in exchange for a customers time and attention

implicit bargain

ex. an advertiser pays for the cost of producing and providing media that a consumer wants, such as a tv program, making an implicit bargain with the consumer. the bargain implied is that the consumer will pay attention to the ad in exchange for the free content.

explicit bargain

clear, direct, and without ambiguity

explicit bargain

provides some explicit values to a customer in exchange for that customer’s time and attention, or for information and insight about that customer.

explicit bargain

ex. when a store provides discounts or bargains to a customer for showing their membership card or giving their email address, it is making…

addressable media

refers to media being able to send customized messages individually to individual addresses

• outside of mass media

• improves customer experience

omnichannel approach/marketing

refers to an organizations capability to interact and transact with an individual customer via any or all channels while ensuring that every interaction takes place in the channel of the customers choosing and that each successive interaction is informed by any previous interactions with that customer in any other channel

omnichannel approach/marketing

customers experience must be integrated across all different interactive channels and these various channels much also communicate among themselves sharing information in such a way that customer dialogue taken on one channel can be taken up again by the next channel

the golden question

an interaction with a customer designed to reveal the most important customer information while requiring the least possible effort from the customer.

the golden question ex.

pet company trying to figure out its most valuable pet owners so they posed the question: Last year for christmas did you give your pet a holiday present?

complaint discovery

outbound interaction to elicit unvoiced complaints, solicit honest feedback, and uncover any problems with a product or service

complaint discovery- social media

social media helps with complaint discovery because through social media, companies can observe complaints as they are made, allowing them to spend less time observing complaints and more time resolving them

• by complaining, a customer initiates a conversation making themselves available to collaborate

• complaining customers are an asset that can be turned into loyal customers

influencing the influencers

strategies used by companies to engage and impact key opinion leaders and influencers, who then advocate for the brand to their followers.

ARIA- Acknowledge, Recognition, Information, Access

1-9-90 rule

visualization of contributions of different participants in an online social community. 1% will post, 9% respond to posts, and 90% just read the posts.

1. the 1% must be invited to a community to contribute for it to be vibrant

2. 90% of the populations engagement may not involve participation because they still read and think and lurk and still use the information

GDPR Law

designed to secure data and protect the privacy of citizens of the EU and the EEA intended to enhance citizens control and rights over their data while simplifying the regulatory environment governing how international businesses must operate within Europe

opt in/opt out

when customers must proactively elect to receive future communications or some other service from an enterprise, it is said that they must “opt in” to receive that treatment

modularization

the process of designing and structuring products or services into separate, standardized, and interchangeable modules that can be combined in various ways to meed individual customer preferences or requirements

• allows businesses to choose to deploy only the modules they need

• the building blocks

configuration

the arrangement or combination of various components or elements within a system, product, or service to achieve a specific functionality, design, or outcome.

• allows the system to adapt to align with certain business processes and preferences

• the outcome

expanded need sets

the broader needs related to a customer’s basic needs, satisfied not by just the product itself, but the services, information or supplemental offerings that enhance the overall customer experience and fulfill additional expectations.

customer success management

a relationship-focused process ensuring customers achieve success (their desired outcomes while using your product or service); aligns client and vendor goals for mutual benefit, reduces churn and drive up-sell opportunities

customer equity

the sum of the lifetime values of some group or segment of individual customers including customers in the future for an enterprise

• if the customers are the only ones generating revenue, then that enterprises customers are responsible for creating its value

Voice of Customer

a customer survey or some other direct interaction with a customer designed to reveal the customers level of satisfaction or happiness, either with respect to a recent transaction, or as a general statement

ROI

how much value can we create for the money we have to use?

ROI= profit + change in value of investment/ initial value of investment

ROC

the rate at which a business is able to create value from any given customer

How much value can I create per customer?

ROC= profit + change in customer LTV / initial customer LTV