3 Organization of the Book
The book adopts a model-based approach toward CRM. It illustrates and reviews the quantitative and modeling aspects needed to understand and implement CRM strategies. The modeling techniques presented here form the foundation for designing and implementing strategic marketing decisions. A brief description of the chapters contained in this book is as follows:
- Chapter 1: Introduction. This chapter provides an overview and functioning of a CRM system. It introduces key concepts and metrics needed to understand and implement CRM models. It also describes the process of building and developing CRM models.
- Chapter 2: Need for CRM models. This chapter outlines the need for CRM models by emphasizing the developments thus far in the CRM literature. Further, this chapter discusses the overall structure of CRM models, and their uses and benefits from a business/marketing standpoint, rather than a technical one. The framework adopted in this book will be whether the models are deterministic or stochastic, and whether they are discrete or continuous. Thus all the models discussed in the book should fall into one of the five chapters that follow.
- Chapter 3: Models for customer acquisition. This chapter starts the discussion on the first stage of CRM – acquiring new customers. The objectives of customer acquisition modeling include identifying the right customers to acquire, predicting whether customers will respond to company promotion campaigns, forecasting the ...