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Unit 5: Closed Loop Marketing

implementing the solution. While acquisition and retention are fairly well understood, Notes
customer profitability through expansion requires some scrutiny.

 Since expansion presents enormous untapped value; an e-CRM strategy must be able to
identify the expansion potential for each customer. It consists of creating space for online
catalogue that helps customer to research products thoroughly by accessing all the
information they need. Secondly, lead capture and profiling captures prospect information
on website, and leverages that information for a follow-up.

 The significance of CRM solution lies in its ability to store and retrieve data. It is the
process of analyzing detailed data, to extract and present actionable, implicit, and novel
information to solve a business problem.
 Above everything, marketers are now under compulsion to be concerned about customer
relations and loyalty. Studies have shown that retaining customers is less expensive and
perhaps a more sustainable competitive advantage than winning over new customers.

 Relationship building and strategies aimed towards customer retention are a plenty in the
web-world and all it depends on deciding which strategy suits best under which market
condition.

 In this unit, you learnt about the data mining technique. Data Mining is an analytic process
designed to explore data (usually large amounts of data - typically business or market
related) in search of consistent patterns and/or systematic relationships between variables,
and then to validate the findings by applying the detected patterns to new subsets of data.
 The ultimate goal of data mining is prediction - and predictive data mining is the most
common type of data mining and one that has the most direct business applications.
 The process of data mining consists of three stages: (1) the initial exploration, (2) model
building or pattern identification with validation/verification, and (3) deployment (i.e.,
the application of the model to new data in order to generate predictions).
 In this unit you also learnt about a statistical perspective of data mining, similarity
measures, decision tree and many more.

5.5 Keywords

360 degree Marketing: Marketing activities which take into consideration brand identity and
take an inclusive approach so that the brand is presented at all points of consumer contact.
Competitive Advantage: An advantage that firms have over its competitors, allowing it to
generate greater sales or margins and/or retain more customers than its competition. There can
be many types of competitive advantages including the firm’s cost structure, product offerings,
distribution network and customer support.
Consumer Behaviour: Consumer Behaviour is a branch which deals with the various stages a
consumer goes through before purchasing products or services for his end use.
Cross-selling: Selling the customer additional, related, products

Data Mining: 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.

Economy: The system of production and distribution and consumption.
Marketing: The management process through which goods and services move from concept to
the customer.
Up selling: Selling the customer a more expensive version of the product

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