BUAD301 Lecture Notes - Lecture 5: Tommy Bahama, Customer Relationship Management, Unstructured Data

• School: University of Delaware
• Department: Business Administration
• Course: BUAD301
• Professor: Townsend Donald

Document Summary

Crm: a key decision tool for marketers. Customer relationship management: involves systematic tracking of consumers preferences/behaviors over time to tailor individualized value propositions. Allow firms to get up close and personal . Process by which firms enact their customer orientation. Identify customers and get to know them in detail. Differentiate customers in terms of needs and value. Interact with customers to improve cost efficiency and interaction. Customize aspects of goods offered to each customer. Examples: usaa, amazon, tommy bahama, disney"s mymagic+ Characteristics: customer lifetime value, customer prioritization, share of customer. Share of customer: the percentage of a given customer"s purchases. It"s easier/cheaper to keep current customers than to acquire new ones. Firms look to increase share of customer instead of share of market. Enables company to grow sales/profits at a lower cost. Lvc is how much profit a firm makes on a customer. Customer equity is financial value of a customer relationship.