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7. As a result of the Life Matters program all but which of the following happened a. Thirty- ve percent more marketing campaigns were run in a 9-month period. b. Customers were ranked by RFM with a maximum score of 125. c. Annual marketing program savings were $3.5 million. d. There were 10 million customer contacts in 9 months, an increase of 25 percent. e. There were 48,000 new accounts opened. 8. In the Bank of Norway case study, all but which of the following resulted a. The bank added 2000 new total customers each month. b. There was a 60 percent conversion rate. c. The new database produced responses of 70 to 80 percent. d. There was an 1100 percent increase in the bank s conversion rate. e. The payback period for the database investment was 12 months. 9. The company rewarded its customers with a. Phone trade-in b. Donations to the Special Olympics c. Free movie rentals d. Price plans based on customer behavior e. All of the above 10. The company s benchmarks from the program included all but which of the following a. Reports produced in a few weeks b. Market-level analysis possible c. Messages that could be tailored to customer segments d. New elds added to the database e. Fields that permitted it to make predictive decisions
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Tupperware used to be sold through neighborhood parties. They were fun. You saw everyone in the neighborhood, and you got the opportunity to buy some kitchen storage containers that you couldn t buy in stores. There is an old story about a Tupperware salesman who was all thumbs. He arrived at a party with a big box of Tupperware products and a catalog, but he did not seem to know his business. He took each item out of the box and could not remember its name or its price, or even what it was used for. He was an embarrassment to the group. After watching him ounder around for about 10 minutes, members of the party began to help him. They took items out of his box, looked them up in his catalog, and gured out the prices for him. Soon, everyone in the room was assisting this helpless man. By the time the party was over, the man had sold more Tupperware than most salesmen sold in a week. In fact, this was his standard method of operation. He always appeared befuddled. He sold Tupperware by getting customers involved.
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hat is what is happening today on the Web. Instead of the standard We demonstrate, you watch, companies are learning to let customers come behind the counter and gure things out for themselves. In many cases, this is proving highly pro table. There has always been a distance between suppliers and customers. This distance is typi ed by the counter. The clerk stands on one side, ready to answer questions and ring up sales. You stand on the other
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side waiting for service. You are not supposed to invade the clerk s space. All of this is changing with the Web. The Web permits customers to get instant access to lots of information that previously was available only through telephone calls or personal visits. Federal Express was one of the rst to start this with its package tracking system. Today, anyone can enter a FedEx package number on the FedEx Web site and instantly nd out what has happened to the package at each point in its journey. Before FedEx had this Web site, you could call a FedEx operator and get the same information in fact, you can still do that today. But by going to the Web, you can get the information faster, you never get put on hold, and you can print out all the information on your PC printer. It is a wonderful system for the customer. How is it for FedEx It is a huge cost saving. Toll-free calls to operators cost companies between $2 and $7 per call, including the cost of the call and the cost of the operator. Web visits cost absolutely nothing once the system is set up and running.
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