Describe the CRM process. How does a company differentiate between a low- and high-value repeat customers? Why should customers be treated differently? How do you think customer touch points should be adjusted based on customer value?

1) Marketing efforts - solicit potential customers 2) Some will purchase = customers and some will continue to purchase = repeat customers 3) Segment into high- and low-value customers based on lifetime value (how much money can be made off a customer over a number of years) 4) Some customers will be lost over time = customer churn Differentiate based on how much money they spend over time Why? Because some customers spend more money and should be "catered to" so they keep buying Touch points: Everyone should have access to www, call center, etc., but not every customer should get targeted ads on their smartphone (potentially too impersonal or don't want to irritate customers) or direct mail (this is expensive and is often ignored, so this should be reserved for special customers) or a sales representative (only large customers should have someone assigned to them) - students should discuss multiple touch points and justify their answer by using the terms high- and low-value customers (there could be multiple answers, but they should explain why not every touch point is appropriate for every customer)