In this unit, we will examine CRM and the concepts of brand equity, brand growth, and customer lifetime value. Consumer Relationship Management (CRM) focuses on using current data to enhance relationships with customers, gathering data for future marketing endeavors, and providing strategic guidance to the organization.
Completing this unit should take you approximately 6 hours.
Brands are one of a company's most valuable assets; growing brand equity represents the consumer preference and purchase intentions for a particular brand. Brand managers examine levels of brand equity as part of the strategic development of growth. High brand equity is built on innovative new line extensions, promotional spending, and adding value to the consumer/brand experience. Customer-Based Brand Equity measures a brand as a strong, sustainable, and differentiated advantage over competitors and unique proprietary brand assets like logo, brand personality, consumer satisfaction, and customer satisfaction.
Mapping consumer response to brand tactics involves three different models. Find these models (Consumer Behavior choice, Motivational Influences, and Intentional Choice) and align these theoretical insight models with the measurement of brand loyalty discussed in unit 3.1, Consumer Mapping. To apply the concepts to real scenarios in brand management, complete the exercises in the boxes. Use your notebook to create 2-3 sentence answers to the challenge questions. You must refer back to key concepts in the resource and charts when included.
The application of CRM provides insights into customer life-cycle management, customer lifetime value, and measuring customer profitability. Understanding how a brand is perceived internally and externally is critical to building and managing a strong brand consumer relationship (CRM). CRM focuses on using current data to enhance relationships with customers, gathering data for future marketing endeavors, and providing strategic guidance to the organization. Refer to this summary of social customer relationship management and compare it to the models discussed in the resource above. Track the nine stages of the Social Customer Relationship Management (Social CRM) model. Identify in each stage which brand strategy best aligns to enhance customer engagement and satisfaction.
Read the theoretical basis for tracking brand equity as it relates to consumer engagement and behavior with a brand. Add the pyramid factors of Maslow's Hierarchy to your reference notes of theories. Categorize this theory in your key terms notes under Consumer Impact on Brand Metrics. To really get to the crux of how to apply the concepts to real scenarios in brand management, complete the exercises in the boxes. Use your notebook to create 2-3 sentence answers to the challenge questions. You must refer back to key concepts in the resource and charts when included.
Consumers are guardians of the brand image. When managed as part of the brand relationship goals, consumers become the ambassadors, and this leads to loyal brand usage and, ultimately, dominant market share. So like any relationship, brand managers need to "feed", nurture, and grow the consumer/brand relationship. It is reciprocal and collaborative in nature.
The most successful brand managers configure the target audience into distinct groups called consumer segments. These groups of consumers share the same motivation and behavior. Read this resource, focusing on 9.1, which identifies the steps to consumer segmentation-- the blueprint for target market selection. Using yourself as the consumer, choose your favorite brand and describe at least four descriptives. To apply the concepts to real scenarios in brand management, complete the exercises in the boxes. Use your notebook to create 2-3 sentence answers to the challenge questions. You must refer back to key concepts in the resource and charts when included.
Key Performance Indicators (KPIs) are quantitative measurements that gauge cross-section brand achievement. One of these KPIs is Customer Lifetime Value. High Customer Lifetime Value measures profit as it relates to those consumers who are loyal, long-time purchasers, and highly profitable to the brand. Low Customer Lifetime Value, where consumers make one purchase from the brand, could lead to lower long-term profit.
Customer relationship management is the most important strategic directive pathway to brand loyalty. Review the three stages that lead to this CRM outcome: meeting and getting acquainted, providing a satisfying experience, and sustaining a committed relationship. Then pinpoint where along the customer journey these three stages should occur.
This review video is an excellent way to review what you've learned so far and is presented by one of the professors who created the course.
Watch this as you work through the unit and prepare to take the final exam.
You can also download the presentation slides so you can make notes.
We also recommend that you review this Study Guide before taking the Unit 8 Assessment.
Take this assessment to see how well you understood this unit.