Ans 1a; Customer acquisition

customer acquisition is the sales and marketing process of obtaining new customers. Customer acquisition also includes the process of converting existing prospects into new customers. For most businesses, the primary means of growth involves the acquisition of new customers. This could involve finding customers who previously were not aware of your product, were not candidates for purchasing your product (for example, baby diapers for new parents), or customers who in the past have bought from your competitors. Customer Retention: It is defined as the activity that a selling organization undertakes in order to reduce customer defections. Successful customer retention starts with the first contact an organization has with a customer and continues throughout the entire lifetime of a relationship. A companys ability to attract and retain new customers, is not only related to its product or services, but strongly related to the way it services its existing customers and the reputation it creates within and across the marketplace. Customer retention has a direct impact on profitability .

Customer Enhancement :

Customer Value Enhancement solution increases your bank's revenue by helping your financial institution synchronize and effectively manage the vital components of an improved customer experience knowledge, technology, people, strategy, and tactics in continuous alignment with your executive vision.

CRM plays a vital role in all these three to attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments. In context to customer acquisition CRM plays vital role as it acquire the prospect customer and customers of rival groups. Growth of organization depends upon the large number of customer base . And CRM is very much important in customers retention .

Ans 1b: One of the most fundamental issues to any company engaged in online ecommerce is whether customer acquisition or customer retention is costly to the company . Of course both are extremely important to making your business a success online, however frequently much more effort is placed on acquiring new customers. This would make sense due to the fact that most of a companys initial revenue is generated by new customer acquisitions. However, if a company doesnt care what happens to a customer after they are on board, the company will have a high attrition rate and not do well long-term. Here are some ideas and suggestions for making your customers happier with your company and stay customers for life. Right from day one, your company should place a strong emphasis on customer-relations and treating your customers like they are the most important people in the world. Making sure your call center and customer service staff answering emails are treating your customers like gems is a must. Having as long a life time value customer base really can increase value of the company

Ans6 : eCRM This concept is derived from E-commerce. It also uses net environment i.e., intranet, extranet and internet. Electronic CRM concerns all forms of managing relationships with customers making use of Information Technology (IT). eCRM is enterprises using IT to integrate internal organization resources and external marketing strategies to understand and fulfill their customers needs. Comparing with traditional CRM the integrated information for eCRM intra organizational collaboration can be more efficient to communicate with customers As the internet is becoming more and more important in business life, many companies consider it as an opportunity to reduce customer-service costs, tighten customer relationships and most important, further personalize marketing messages and enable mass customization ECRM is being adopted by companies because it increases customer loyalty and customer retention by improving customer satisfaction, one of the objectives of eCRM. E-loyalty results in long-term profits for online retailers because they incur less costs of recruiting new customers, plus they have an increase in customer retention. Together with the creation of Sales Force Automation (SFA), where electronic methods were used to gather data and analyze customer information, the trend of the upcoming Internet can be seen as the foundation of what we know as eCRM today. As we implement eCRM process, there are three steps life cycle: 1. Data Collection: About customers preference information for actively (answer knowledge) and passively (surfing record) ways via website, email, questionnaire. 2. Data Aggregation: Filter and analysis for firms specific needs to fulfill their customers. 3. Customer Interaction: According to customers need, company provide the proper feedback them. We can define eCRM as activities to manage customer relationships by using the Internet, web browsers or other electronic touch points. The challenge hereby is to offer communication and information on the right topic, in the right amount, and at the right time that fits the customers specific needs
eCRM strategy components

When enterprises integrate their customer information, there are three eCRM strategy components[1]:
1. Operational: Because of sharing information, the processes in business should make customers need as first and seamlessly implement. This avoids multiple times to bother customers and redundant process. 2. Analytical: Analysis helps company maintain a long-term relationship with customers. 3. Collaborative: Due to improved communication technology, different departments in company implement (intraorganizational) or work with business partners (interorganizational) more efficiently by sharing information

Ans 7: a] Data Warehousing: A data warehouse is a relational database that is designed for query and analysis rather than for transaction processing. It usually contains historical data derived from transaction data, but it can include data from other sources. It separates analysis workload from transaction workload and enables an organization to consolidate data from several sources. In addition to a relational database, a data warehouse environment includes an extraction, transportation, transformation, and loading (ETL) solution, an online analytical processing (OLAP) engine, client analysis tools, and other applications that manage the process of gathering data and delivering it to business users. Data warehouses are designed to help you analyze data. For example, to learn more about your company's sales data, you can build a warehouse that concentrates on sales. Using this warehouse, you can answer questions like "Who was our best customer for this item last year?" This ability to define a data warehouse by subject matter, sales in this case, makes the data warehouse subject oriented.

:Data Mining: Generally, data mining (sometimes called data or knowledge discovery) is the process of analyzing data from different perspectives and summarizing it into useful information - information that can be used to increase revenue, cuts costs, or both. Data mining software is one of a number of analytical tools for analyzing data. It allows users to analyze data from many different dimensions or angles, categorize it, and summarize the relationships identified. Technically, data mining is the process of finding correlations or patterns among dozens of fields in large relational databases. Continuous Innovation Although data mining is a relatively new term, the technology is not. Companies have used powerful computers to sift through volumes of supermarket scanner data and analyze market research reports for years. However, continuous innovations in computer processing power, disk storage, and statistical software are dramatically increasing the accuracy of analysis while driving down the cost. Example

For example, one Midwest grocery chain used the data mining capacity of Oracle software to analyze local buying patterns. They discovered that when men bought diapers on Thursdays and Saturdays, they also tended to buy beer. Further analysis showed that these shoppers typically did their weekly grocery shopping on Saturdays. On Thursdays, however, they only bought a few items. The retailer concluded that they purchased the beer to have it available for the upcoming weekend. The grocery chain could use this newly discovered information in various ways to increase revenue. For example, they could move the beer display closer to the diaper display. And, they could make sure beer and diapers were sold at full price on Thursdays

Ans 7b: Permission marketing is a term popularized by Seth Godin used in marketing in general and e-marketing specifically. The undesirable opposite of permission marketing is interruption marketing. Marketers obtain permission before advancing to the next step in the purchasing process. For example, they ask permission to send email newsletters to prospective customers.sIt is mostly used by online marketers, notably email marketers and search marketers, as well as certain direct marketers who send a catalog in response to a request. This form of marketing requires that the prospective customer has either given explicit permission for the marketer to send their promotional message (like an email or catalog request) or implicit permission (like querying a search engine). This can be either via an online email optin form or by using search engines, which implies a request for information which can include that of a commercial nature. To illustrate, consider someone who searches for "buy shoes." Online shoe stores have searchers' permission to make an offer that solves their shoe problem

Ans 3: a] CUSTOMER DEFECT, the reality is that many businesses lose a significant number of customers of their customer base every single year and either dont know who these customers are, why they are leaving or spending less.

Here are some of the key reasons why customers switch: Too little contact Too little individual attention Poor quality attention especially when problems are encountered Generally poor service levels and standards

When there is customer defect ,attrition management has the vital role to play: Relationship attrition

is the number of client who do not renew their relationship per month this is expressed as a percentage of the total customers at the beginning of the month. This is a key indicator of the relationship management performance of the business and should be reviewed at least monthly. The measure of relationship retention is an important indicator of how effective your business has been fulfilling the requirements of the customer. In some cases attrition rates can be very high and alarming.

How to keep customers for life: Select the right customer through market research Know your purpose for being in business Move your customers from satisfaction to loyalty by focusing on retention loyalty schemes Develop reward programs Customize your products and services Train and empower your employees in excellent customer service Speed up the customer service process Know whats important for the customer Always measure whats important to the customer Introduce customer retention measures Use market value pricing concepts

Ans 3 b; Yes ,retention management and attrition management are two sides of same coin.

Attrition and Retention are two phenomenon that are faced by organizations especially these days. The causes are many, only some are known and many remain unknown to best of organizations. Attrition happens and throws up challenges and organizations in a hurried manner look for and device strategies for retaining people. From money to change of assignments/locations, promotions etc are normally resorted to. Insome cases these work and in many case these dont! We will analyse the causes later. Employers Woes: Why does attrition happen? The reasons are: 1. Natural separation like superannuation or death.

2. A clear and serious disconnect with the organization. This could span issues like:

Organization and Work Culture. Perceived ill treatment (insulting, unkind, unhelpful, unreasonable,etc) by superiors, colleagues across the organization. A feeling of being taken for granted and resultant feeling of loss of self esteem. Inadequacy of self competence as regards job demands. Lack of guidance by superiors and/or HR Lack of growth opportunities

3. External Influences.

Better growth opportunities. Better emoluments/location. Softer (less demanding work culture)