CRM CLV RFM

Customer Relationship
Management
Customer relationship management (CRM) is the combination of practices, strategies
and technologies that companies use to manage and analyze customer interactions and
data throughout the customer lifecycle, with the goal of improving customer service
relationships and assisting in customer retention and driving sales growth. CRM systems
compile customer data across different channels, or points of contact between the
customer and the company, which could include the company's website, telephone, live
chat, direct mail, marketing materials and social media. CRM systems can also give 
customer-facing staff detailed information on customers' personal information,
purchase history, buying preferences and concerns.
 CRM CLV RFM
Customer Lifetime
Value
CLV is a measurement of how valuable a customer is to your company with an unlimited
time span as opposed to just the first purchase. This metric helps you understand a
reasonable cost per acquisition.
CRM CLV RFM
• Conduct secondary research
Market analysis and strategies
• Identify segmentation variables that are
relevant to the product
• Find targets that
– Fit well with company
– Are profitable
– Are actionable
• Positioning is executed via the 7Ps

• Write a positioning statement

Tactical Plans
 4P Considerations
• Make sure that your 4Ps are consistent with
one another
– e.g., Exclusive distribution with heavy
promotion is inconsistent
• Make sure that your 4Ps are what your target
desires
 Discussion Question
1. For a new designer clothing line, what would
be your
– Product mix decisions?
– Price decisions?
– Promotion decisions?
– Distribution decisions?
2. What factors would you utilize to justify your
decisions above?