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Acquiring customers by giving discounts. It works in the short term, but the customers do not stay with you. Assuming that every acquired customer is valuable. Many of them can be unpro table. Concentrating on acquisition to the exclusion of retention. Hanging on to customer names and not exchanging them with others.
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1. In the prospect penetration case study, what can you use the target potential index for a. Determining which customers are worthless b. Determining your retention budget c. Deciding which prospects you should aim at acquiring d. Nothing, since it is a worthless idea e. Scrap paper 2. What factor was not used to select prospects in the Key Equipment case a. Major industry b. Products purchased c. Number of employees d. Year company started e. Sales volume 3. In the SalesLogix case, which of the following was not listed as being a problem to begin with a. There were no e-marketing campaigns. b. The company lacked high-technology products. c. There was no lead-management system. d. Telemarketing was not integrated. e. The cost per lead was $500. 4. Which of the following was not one of the results of the SalesLogix case a. Lead volume grew to 9600 per quarter. b. Online events grew to 12 per month. c. Telemarketing was outsourced to a better bureau. d. The system ltered out 25 percent of raw leads. e. There was 100 percent lead tracking. 5. In the BMW study, which one of the following was not done a. Using Experian data in regressions. b. Delivering personalized content to prospects. c. Assigning LTV to each customer and participant. d. Using variables to score prospects. e. None of the above; all these things were done.
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6. List four product categories that cluster coding probably works for and four that it probably doesn t work for. 7. Which of the following is probably not true of most companies a. The company pays bonuses for customers, not for longterm customers. b. The company does not know whether new customers will be long-term or not. c. The company has not computed the LTV of customers or prospects. d. The company is highly customer-centric. e. Marketing and sales are going in different directions. 8. Why did the Weekly Standard custom approach work a. Customers are dumb. b. Customers like to have their views agreed with. c. It was a uke. Most such copy fails. d. The numbers are probably fake. e. None of the above. 9. In the timeshare case, if no-hook tours perform better, why does anyone sell hook tours a. The data are wrong. Hook tours are better. b. Hook tours are traditional. c. It takes time to change an established system. d. It is hard to persuade people that what they are doing is wrong. e. Answers b, c, and d. 10. What are three things that msdbm did for BMW that helped to solve the problem
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or some time, creating customer pro les by appending data from outside sources to a database of customers and prospects has been a thriving business. The basis for this industry is the U.S. Bureau of the Census, which gathers data from every household in America every 10 years, the last time being in 2000. For most people, the census collects only a minimum amount of data: name, address, age, gender, and ethnicity. However, for 2 households out of 14, the census uses the long form, which asks many questions about income, value of home, type of plumbing, occupation, and so on over 200 pieces of data in all. These data are arranged for sale to businesses that are interested. Before providing this information to the business community, the Census Bureau scrambles the data by averaging the answers from the 2 households that lled out the long form and attributing these data to all 14 households in the group. Because of this, you cannot find out Arthur Hughes s actual income or home value from the census data. What you get appended to Arthur Hughes s record is the average of the data given by the 2 households out of 14 in the area in which Arthur lives. This isn t a bad estimate because as America has evolved, most people live in subdivisions in which the houses are all of similar value. As a result, the incomes of the residents of each group of 14 houses are likely to be similar, as are their ages, number of children, and so on. Only a small percentage of Americans today live in diverse neighborhoods in which poor and rich or old and young live side by side.
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