Customer relationship management

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Reference no: EM132923519 , Length: word count:1500

DATA4700 Digital Marketing and Competitive Advantage

Customer Relationship Management

Learning Outcome 1: Measure customer churn and understand the reasons why it occurs

Learning Outcome 2: Be familiar with analytics techniques to predict customer churn

Learning Outcome 3: Implement interventions to prevent customer churn from happening

Learning Outcome 4: Understand the relationship between customer churn and customer relationship management

Calculating churn rates
To calculate customer churn rates:
Step 1:
Choose whether you wish to measure number of customers, sales revenue, or another important business metric (such as sales profit)

Step 2
Choose your timeframe - this could be measuring:
• current month versus a previous month
• current quarter versus a previous quarter
• current year versus previous year

1. Calculate the customer churn rate from end of September to end of October.
2. What other churn rates can you calculate?
Compare your answer for Q1 with a classmate, and then discuss possible answers for Q2.

1. Customer churn rate from end of September to end of October:

2. Other churn rates that you calculated:

Remember
Step 1: Choose whether you wish to measure number of customers, sales revenue, or another important business metric.
Step 2: Choose your timeframe.

Why is customer churn important?
• Reason #1: Difference in revenue generated over time.
The chart below shows the revenue of a company making 0.25% revenue each month (blue line), compared to what its revenue would be if it suffered a 5% churn each month (green line).

1. How does customer churn relate to competitive advantage?

2. What benefits do companies get from this competitive advantage?

3. How can you cause your competitors to suffer customer churn? In other words, how can you attract customers away from your competitors and towards your company?

1. Relationship between customer churn and competitive advantage:

2. Benefits from having a competitive advantage:

3. How to cause your competitors to suffer customer churn:

1. What data about the customers of Tom's Pet Store could be input into a model to predict customer churn?

2. Thinking about the on-demand video subscription service whose churn you calculated earlier, what data about your customers could be input into a model to predict your customer churn?

1. Data about Tom's customers that could be input into a predictive model:

2. Data about the customers of your subscription service that could be input into a predictive model

Attachment:- Digital Marketing.rar

Reference no: EM132923519

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