CRM Glossary
Learn the CRM jargon and the most commonly used buzzwords.
Analytical CRM
Analytical CRM uses Business Intelligence (BI) and data mining
to report on and predict customer behavior.
Back Office
Administrative staff of a company who do not have face-to-face
contact with the company's customers such as operations, IT and
Finance.
Channel
How products and services are sold to end customers. Retailers
and wholesalers are examples of different channels.
Channel conflict
This happens when a company tries to sell products or services
to the same customer group using different channels Selling via
Internet and via retail is a good example of channel conflict.
Customer Churn
Customer defection or disloyalty. Can be calculated as the
number of lost customers from the average number of customers
within the same period, and shown as a percentage.
Collaborative filtering
A feature of CRM software that allows a business to provide
products or services to a customer based on what other customers
with similar preferences have purchased in the past. Internet
retailers use collaborative filtering to recommend popular
products to you.
Cross selling
Identifying and selling additional different goods as a result
of the customer’s original purchase, either at the time of
purchase or after.
Customer loyalty
Measured as the extent to which customers will purchase
additional products or services based on a previous buying
experience.
Customer Relationship Management (CRM)
A business strategy that puts the customer at the heart of the
business and utilises software to retain and improve customer
loyalty and profitability.
Data Mining
Analyzing information to identify trends, patterns and business
opportunities.
Data Warehouse
An information repository such as a database that allows
companies to access and analyze data and trends.
Front Office
The operations and staff of a company that are customer facing.
These may include: customer service, customer support, call
centers, and internal sales.
One-to-one marketing
Learning about and developing a relationship with the customer
on a personalized, interactive basis.
Segmentation
Dividing customers into groups, each with common demographic
attributes and assessing their value to the business.
Up selling
increasing the value of a sale to the customer, for example by
offering a more expensive version or add-ons, either at the time
of sale or after.
