CRM Glossary
Channel
Distribution means through which products and services are sold to end customers. Retailers, resellers, wholesalers are examples of different channels.
Channel conflict
Occurs when a business tries to sell products or services to the same customer segment using different channels, which then cannibalize sales from one another. Selling via the Internet and via retail stores is an example of potential channel conflict.
Churn
A generic term describing customer defection or disloyalty. Customer churn can be high in certain markets such as long-distance phone services, credit card companies and ISPs.
Collaborative filtering
A CRM software feature whereby a company can offer products or services to a customer based on what other customers with similar preferences have purchased previously. Amazon.com uses collaborative filtering to recommend similar popular books to you.
Consumer direct
The channel that includes all products and services delivered directly to the home through catalogs, telemarketing, TV shopping, kiosks, Web sites, and the newly emerging automatic grocery-replenishment services. Consumer Direct describes the process involved when a manufacturer sends goods directly to a consumer via the Internet (such as providing music or video) with no intermediaries, but the term also refers to direct-mail and catalog channels.
Cross selling
Selling related goods and services to a customer, either at the time of purchase or afterwards.
Customer loyalty
The degree to which customers will continue to purchase additional products and services from a business instead of from it's competitors.
Customer Relationship Management (CRM)
A business process using software coupled with traditional marketing, sales, and support methods to retain and improve customer loyalty. The goal is to build a personal relationship with each customer based on their unique needs, to satisfy those needs, and to build long-term trust.
Data dining
Analyzing information in a CRM software database to spot trends and patterns that can be translated into business opportunities.
One-to-one marketing
One of the tenets of CRM, it focuses on the individual customer, learning about the customer, and developing a unique relationship with the customer.
Pareto Principle
Also known as the 80/20 rule. This states that 80 percent of your business revenue comes an 20 percent of your customers. Practically speaking, it means you should focus your efforts on the 20% and retain their long-term loyalty.
Up selling
Selling upgrades, deluxe versions or add-ons for a product or service, either at the time of sale or afterwards.
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