Customer relationship management

Customer relationship management consists of four elements:

Customer selection
- What criteria determine who will be our most profitable customer?
- This refers to customer segment targeting which is addressed in Market Segmentation.
Customer acquisition
- How can we acquire this customer in the most efficient and effective way?
- Includes promotions
- Includes incentives like
  - Acquire new customers
  - Entice existing customers to use the company's internet based offering.
Customer retention
- How can we keep this customer for as long as possible?
- Customer retention aims at:
  - Turning one time customers into repeat-purchase customers
  - Keeping customers for as long as possible in the online channel
Customer extension
- How can we increase the loyalty and the profitability of this customer?
- Maximize the life time value for a customer. Companies achieve this by expanding scope through Cross selling.

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