Framework:

It has been said that a customer relationship management (CRM) strategy is only as effective as the quality of its data. However, CRM goes beyond collecting and analyzing pure data. In the scope of this course, it is about adding value to online relationships, the same way a business would with real-life contacts or consumers. To become a true advocate of a company, online customers need to feel a company recognizes they are an individual, with individual wants and needs.

CRM, therefore, can be seen as a building of loyalty. To accomplish this we must examine the Ladder of Loyalty.

The Ladder of Loyalty defines five steps that customers will go through to become loyal to a brand:

1. Suspect has no relationship with the brand or business
2. Prospect has shown some level of interest
3. Customer has purchased from the business
4. Client has a deeper relationship with the business through repeat purchases
5. Advocate Clients that recommend the brand, provide testimonials, and bring customers to the business

Instructions:

Through the course material (textbooks, lectures) and the resources provided, examine the Ladder of Loyalty. Then, use this as a lens to reflect/research an example of a business that you believe succeeded online on one specific stage of the loyalty ladder. Then, contrast this with a business that you feel did a poor job online on one specific stage stage of the Loyalty Ladder.

Notice the emphasis on online - your discussion is to be about online strategies only. For example, things like T-shirt campaigns or trade shows would be out of scope for this course, and will result in a poor mark.

Note: You will find it helpful to either:

• Confine your compare & contrast arguments to only one specific stage of the loyalty ladder for both companies. For example, two companies where one succeeded at creating clients, however the other failed at creating clients
• Or, confine your compare & contrast arguments to a specific business model. For example, two companies that sell sports equipment online. However, one succeeded at one specific stage of the ladder, but one failed at a different stage of the ladder