REQUIRED TOPIC 1: M & Ms
Go online to the M&Ms website (http://www.mms.com/us/index.jsp) and evaluate it. You will have to go through more than just the main landing page—click on the current contests and other pages to get the data you need. Respond to the following questions.
⦁ What does the company do to build loyalty? To build community?
⦁ Are there opportunities for feedback? Does the company partner with other organizations to leverage the loyalty those other companies enjoy with their customers? If so, what is the company doing?
⦁ Overall, what do you think is most effective about the site? What is the least effective?
⦁ Are you a loyal customer of M&Ms? If so, why?
REQUIRED TOPIC 2: Customer Relationships
Many companies use cause-related marketing to build their customer relationships. You see this when a product or service indicates a portion of each sale will benefit a specific charity.
Check out the 20 best cause marketing campaigns at https://99centrazor.com/cause-marketing-examples/ or the top 2018 https://www.thedrum.com/news/2019/06/19/cause-marketing-best-and-worst-brand-purpose-campaigns .Select a campaign to share with us and explain why you think this was a good cause-marketing campaign.
Conversely, find a cause-related marketing campaign you think was not successfully launched.
Use at least one (1) reference and a link to the cause-related marketing campaign.
REQUIRED TOPIC 3: Customer Satisfaction
Review the customer satisfaction scores in Table 2.2 of the Week 2 readings. What do you think? Do you find these particularly low, and would you prefer to see them close to 100 percent? Why do you think they fluctuate? Can any company ever achieve 100 percent customer satisfaction? As a customer, what are some of the sources you use to assess customer satisfaction with a product or service you are considering? How dependable do you view that source? (Think of consumer sources like Consumer Reports, or customer-provided reviews, etc.)
Please post on only one or two of these questions and allow your fellow classmates to post something original.
Customer satisfaction scores have been relatively stable for the past few years as illustrated in Table 2.2, “Industry-Average Customer Satisfaction Scores, 2000–2008.” You might think that if increasing the satisfaction of customers were, indeed, the goal of businesses, the scores should show a steady increase. Why don’t they? Maybe it’s because just satisfying your customers is a minimal level of performance. Clearly customer satisfaction is important. However, it isn’t a good predictor of a customer’s future purchases or brand loyalty. For example, one study of customer satisfaction examined car buyers. Although the buyers rated their satisfaction levels with their purchases 90 percent or higher, only 40 percent of them purchased the same brand of car the next time around (Lambert-Pandraud, Laurent, & Lapersonne, 2005).
REQUIRED TOPIC 4: CRM & CLV
The goal of any formal customer relationship management program is to attract and retain profitable customers with high customer lifetime value.
Can you identify a company for which you might be considered a most valuable customer, where you are in Level 1 of their customers (See Figure 2.5, Levels of Customers Based on Profitability)?
Required: Record your lifetime value calculation and discuss how the company tries to retain and grow your business as a most valuable customer.
You are to calculate your customer lifetime value for this.
How much do you spend a week x 52 weeks = your annual spending. Then multiply by 10 to show a 10-year CLV.
Why is LTV important? Marketers use this information in a number of ways. First, it identifies their most valuable customers (MVCs), that group of regular and loyal purchasers who do not make up the majority of the company’s customers, but the customers who produce the most profit per customer. MVCs are the customers that should receive the company’s highest level of customer service and communication. MVCs are most often the ones that sign up and participate in loyalty programs discussed earlier. Most companies probably have at least two other categories of customers, and some of these customer groups may not be worth the marketing expenses. Let’s take our shoe example again. Suppose the cost of producing and distributing the running shoe was $50. Add in the $35 acquisition cost, and certain customers who only buy once are worth only worth $15 LTV. That is a big difference from the $1,165 noted above. Yet, the bulk of a company’s customers will most likely be the largest percentage of customers, so they can’t be ignored. Figure 2.5 illustrates the most typical profile of customer groups in consumer markets.