2 credits
Spring 2025 Lecture Upper Division
Customer Relationship Management (CRM) refers to the selection or identification, acquisition, growth and retention of desired customers to maximize profit. CRM requires a shift in mindset from product-centric to customer-centric management and a new set of tools for understanding and predicting the behavior of current customers. This course focuses on analytical CRM: identifying good prospects and customer acquisition, customer development via up-selling, cross-selling and personalization, customer attrition, retention, and customer lifetime value. While traditional marketing relied on the three pillars of segmentation, targeting and positioning (STP), technological advances have made it possible to obtain customer-level transaction data, and also to target individual customers with a customized marketing mix that is designed to maximize individual customer value. Important strategic questions arise from such a radical shift in marketing mix options, questions such as: How to allocate resources to customer acquisition and to customer retention? Are loyal customers more profitable for firms? Related to these strategic questions are important conceptual and computational issues, such as: What metrics are best used to measure customer profitability? What techniques can be used to identify most profitable customers? How to target profitable customers with customized price, promotion, product, place? This course will equip you with the skills and tools you need to answer such strategic, conceptual and computational questions related to customer relationship management (CRM). Permission of instructor required.
Learning Outcomes1Build your knowledge of a rapidly emerging marketing arena - customer-centric marketing.
2Develop basic analysis skills using a statistical software package.
3Increase your analytical skills and expose you to several commonly used advanced modeling techniques.
Restrictions
made by Purdue students.