Download Understanding Relationship Marketing: Terms, Definitions, and Technologies and more Quizzes Digital Marketing in PDF only on Docsity! TERM 1 Relationship Marketing DEFINITION 1 - Is about establishing, maintaining, enhancing, and commercializing customer relationship through promise fulfillment- Relationship capital may be the most important asset a firm can have- A firm using relationship marketing focuses more of wallet share than market share TERM 2 Wallet Share DEFINITION 2 - Used to calculate the percentage of a specific consumer's spending for a type of good or service that goes to a particular companyEx. If a consumer spends $60 a month at fast food restaurants, and $30 of that amount is at McDonald's, McDonald's has a 50% wallet share for that customer TERM 3 Stakeholders most affected by Internet tech. DEFINITION 3 1. Consumers: who are end users of products & services2. Employees: who need training and access to data and systems used for relationship management3. Business customers: in the supply chain4. Lateral partners: such as other businesses, not for profit organizations or governments TERM 4 CRM DEFINITION 4 - Is the process of acquiring, servicing, and managing long- term relationships with customers TERM 5 Traditional CRM (1.0) DEFINITION 5 Benefits:- increased revenue from better targeting- Increased wallet share with current customers- Longer retention of customersEx. Phone, email, in person, SMS, website TERM 6 Social CRM (2.0) DEFINITION 6 - Adds social media technology and customer collaborative conversations to the process. Ex. Blogs, social networks, photo sharing, reviews/ratings, etc.Benefits:- Monitoring and improving reputations- Learning more about customer needs, wants, and problems- Improving target market selection and revenue potential- Gathering data for market research on products and customer service- Decreasing customer service costs- Identifying new revenue opportunities TERM 7 Customer Acquisition DEFINITION 7 - The process of bringing new customers to a particular brand, product or service* Costs 5-7 times more than retention TERM 8 Customer Retention DEFINITION 8 - Customer retention refers to the ability of a company or product to retain its customers over some specified period. TERM 9 Building blocks for successful CRM DEFINITION 9 1. Key aspect of CRM vision is how to build trust (e.g. guarding customer privacy - trust seals can help) TERM 10 2. CRM Strategy DEFINITION 10 - An important CRM strategy is to move customers up the relationship intensity pyramid- Many CRM goals refer to customer loyalty- Another CRM goal involves building bonds with customers on 3 levels:- Financial- Social- Structural
