Theory/Vocab Definitions
What is Customer Segmentation?
What is one of the most important things to understand about a brand?
This type of equity reflects the total value of a brand's customer relationships.
What is Customer Equity?
Brands that focus on building long-term relationships embrace this approach.
What is a customer-centric approach?
This term refers to strategies focus on keeping customers loyal to the brand.
What is retention?
Tailoring marketing, products, or services to meet the individual preferences of a customer is known as this.
What is Personalization?
As if it were solid and monolithic.
What is how most managers speak about the value of a brand?
The additional value a product gains from being associated with a recognized name or logo.
What is Brand Equity?
This key marketing principle highlights delivering value to customers as a priority.
What is value proposition?
A common way to encourage customer retention by rewarding loyalty.
What are loyalty programs?
Total worth of a customer to a business over the entirety of their relationship.
What is Customer Lifetime Value (CLV)?
A dangerous action that obscures the idea that brand value is idiosyncratically assigned by the customer.
What is assigning an average value?
This type of equity focuses on the long-term financial benefits of nurturing customer relationships over acquiring new ones.
What is relationship equity?
This type of marketing strategy emphasizes understanding and fulfilling the specific needs of individual customers.
What is customer-driven strategy?
Retaining an existing customer is more cost-effective than acquiring a new one by a factor of this range.
What is 5-7 times?
Then process of identifying, collecting, and analyzing customer feedback to improve their experience is referred to as this.
What is the customer feedback loop?
This term describes the financial value and reputation a company gains from its brand's recognition and strength in the market.
What is competitive advantage?
The three components of customer equity are Value Equity, Relationship Equity, and this type of equity.
What is Brand Equity?
To be truly customer-centric, brands must align their objectives with these expectations.
What are customer needs or preferences?
Brands that excel at retention often use predictive models to anticipate this type of customer behavior.
Points of interaction between the customer and the brand throughout the customer journey.
What are Touchpoints?
A strong brand can influence customers' willingness to pay more for a product, creating this type of value.
What is Price Premium?
This type of equity focuses on the objective value customers perceive in a product or service based on quality, price, and convenience.
What is Value Equity?
This philosophy shifts focus from the value of products to the value of customer relationships.
What is customer-focused brand management?
This concept refers to creating emotional and psychological ties to increase a customer's likelihood of staying loyal.
What is customer engagement?