Customer Relationship Management Terminology

Read the overview below and complete the activities that follow.

Customer relationship management is a business philosophy and set of strategies, programs, and systems that focuses on identifying and building loyalty with a retailer's most valued customers. Research indicates that retailers are more profitable when they focus on retaining and increasing sales to their best customers rather than attempting to generate sales from new customers or marginal existing customers. Retailers use information from the customer database to develop programs for increasing the value they offer to their best customers.

Match the characteristic and example to the corresponding CRM term. Match the example and characteristic to the CRM function. CRM FEATURE EXAMPLE After earning 100 points, where each dollar spent equals a point, the customer receives a $5 reward Customer Loyalty A customer who only shops at Macy's and ignores advertisements from other department stores Frequent Shopper Program 20% of a customer's weekly expenditures made at a coffee shop Market Basket Analysis Placing more importance on some customers than others, based upon their purchases Customer Lifetime Value A grocer who had snack cakes in the bread aisle, but now also has snack cakes near the coffee Share of Wallet