Chapter 14


1.

Go on the Web and find a company that asks you to complete your personal profile. See what is good and bad about the way this company goes about it.

answers will vary.

2.

Figure out how you could use customer profiles in your business. How can you collect the data? How will you give your customers an incentive to provide information?

answers will vary.

3.

In the P&C case study, what was the cost per piece of the mailing?

  1. $0.33

  2. $0.43

  3. $0.53

  4. $0.63

  5. None of the above

( b ) $547,559/1,264,571 = $0.43

4.

In the P&C case study, why didn’t the P&C company select those with the highest revenue per sale?

  1. This is a trick question: It did.

  2. The optimized group had higher total sales.

  3. The optimized group had higher response rates.

  4. Both b and c.

( d ) both b and c.

5.

Why are the best responders not necessarily the best people to target in a mailing?

because they may be the least creditworthy

6.

After a mailing to 100,000 customers, six of them telephoned to say that they did not like the text of the mailing. On what basis would you repeat the same mailing, despite these phone calls?

if the mailing was profitable, you should not have your marketing program derailed by six malcontents out of 100,000.

7.

If you ask 400,000 people to complete a profile and only 2 percent respond by doing so, on what basis could you say that the exercise was worthwhile?

if the revenue from the information and sales to the 2 percent is profitable after deducting the cost of the profile, the response rate is unimportant.

8.

Could you use a Web quiz in your business? Who would take the quiz? What would be in it for them?

answers will vary.

Answers

1.

Answers will vary.

2.

Answers will vary.

3.

(b) $547,559/1,264,571 = $0.43

4.

(d) Both b and c.

5.

Because they may be the least creditworthy

6.

If the mailing was profitable, you should not have your marketing program derailed by six malcontents out of 100,000.

7.

If the revenue from the information and sales to the 2 percent is profitable after deducting the cost of the profile, the response rate is unimportant.

8.

Answers will vary.




The Customer Loyalty Solution. What Works (and What Doesn't in Customer Loyalty Programs)
The Customer Loyalty Solution : What Works (and What Doesnt) in Customer Loyalty Programs
ISBN: 0071363661
EAN: 2147483647
Year: 2002
Pages: 226

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