Statistical Methods in Customer Relationship Management

9.1 Introduction

In the previous chapters of this book we have examined how CRM can be implemented within an organization. The concepts, models, and strategies discussed in these chapters will provide firms with a good understanding of how to acquire high-value customers, how to retain them, how to prevent customers from churning, and how to increase customer win-back rate, all in an effort to enhance firm profitability. Next, firms need to apply this understanding to the actual resource allocation across customer segments, marketing activities, and channels within the organization. As technology develops, organizations have to constantly update themselves with the latest changes and adapt their marketing strategies to remain competitive in the market. Therefore, it is important for CRM managers to be aware of these changes and take them into account when formulating and implementing the marketing strategies [1].

In this chapter, we present three marketing methods that are receiving increased attention from marketers – social media, mobile marketing, and customized campaigns. The chapter is organized as follows. We first discuss the emergence of social media. Then we talk about the influence of mobile channels in implementing CRM initiatives. Finally, we discuss how firms can implement customized marketing campaigns by focusing on developing relationships with individual customers. Popular commercial uses and expected future development trends are also identified for each of the ...