In the chapter discussion about CRM, you read about four key characteristics of CRM: share of customer, lifetime value of a customer, customer equity, and customer prioritization. Each of these elements is discussed in the context of monitoring and assessing the effectiveness of a CRM initiative. Often a firms loyalty (or rewards) program serves as a key enabler of CRM capabilities based on the customer data such programs generate.

In 2017, Macys launched a revamped Star Rewards loyalty program as one measure to combat sliding brick-and-mortar sales and also promote more online shopping at Macys. By 2018, the firm was experiencing an impressive turnaround in sales. Go to their website (www.macys.com) and review the information about their reward program.

5-17. In what ways could Macys expect to measure the four elements of CRM within the context of a reward program such as this?

5-18. How would data be collected for each element, and how might management at Macys use that data to provide loyal customers with a very strong relationship with the firm?