Describe the CRM Process

question 27

Essay

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?

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Definitions:

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 1 indicates certainty.

Capital Budgeting

The process by which a business evaluates and selects long-term investments that are expected to yield returns over a period of time.

Risk Character

A term describing the unique attributes and level of risk associated with an investment or financial decision.

Abandonment Option

The abandonment option is a right, but not the obligation, to abandon an investment or project if it becomes unprofitable or risks exceed anticipated benefits.