CRM long answers

• 3 Sources of Customer Value

1. Operational Excellence: Companies that focus on operational excellence priotize efficenty and cost effectiveness in their process. Which allows them to offer their customers at an affordable price and reliable delivery.

2. Product Leadership: Fouses on innovation and high-quality products and services. those companies that purse product leadership invest in research and development to maintain their competitive edge and deliver better offerings.

3. Customer Intimacy: they focus on building a strong, personalized relationship with customers. they tailor their products and services to meet individual needs, often resulting in a higher customer satisfaction and loyalty.

• Customer Segmentation: involves dividing a company’s market into distinct subsets of customers with similar needs, prefrences, or behaviors. enables companies to identity, target, and serve different segments.

Key steps include:

1. Data Collection: using internal and external sources, such as sales records, social media insights, and market research to gather customer information.

2. Segmentation Criteria: classifies customers based on attributes like demographic, purchasing behavior, or geographic location.

3. Value Propostion: Creating customized offers for each group of customers to satisfy their specific needs.

Also plays a vital role in:

1. Targeting Potential Customers: helps businesses focus on resources on getting the most promising segments.

2. Differentiating Strategies: helps companies use different marketing and service strategies for each customer group, making them more relevant and effective.

3. Optimaizing Resource Allocation: priotizes high-value customer segments ensures the best return on investment