CRM Assignment 1

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Assignment 1
Glenn Johnson, Harsh Limbachia, Inderjeet Kainth, Manvika Adlakha and Preyaskumar Gajjar
DI 302 B01 CRM Process and Patterns
Professor Kyle Jessiman
January 31, 2024

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1. A. Using the above diagram, name a different company that fits into each category. Explain.
I. Mass Marketing: Metro Inc.
Metro Inc. is a company that owns grocery stores in Canada. They use mass marketing, and they do this
by offering many different products and promoting them in different ways, like on TV or online. Their
goal is to meet the needs of a wide range of customers.
II. Niche Marketing: Patagonia
Patagonia is a clothing and outdoor gear company known for niche marketing. They serve customers
that value sustainability and outdoor activities and are concerned about the environment. This niche
market is in line with Patagonia's values because of its emphasis on eco-friendly materials, ethical labour
practices, and activism.
III. Database Marketing: Netflix
Netflix uses database marketing to suggest shows and movies to its customer. They look at what
consumers have watched before and based on their likes, using special algorithms. Then, they suggest
new things that consumer might enjoy based on their history and ratings.
IV. 1 to 1 Relationships: Apple
Apple is known for building one-to-one relationships with its customers through its retail stores,
customer support, and product launches. The company fosters a strong sense of brand loyalty by
creating a direct and personalized connection with its user base.
B. What are the two ways for a company to move to the top right corner of the diagram?
 Personalized Communication: Communicate with clients directly and personally, answering their
questions, feedback and fostering a sense of community.
 Customized Goods and Services: Create a more distinctive and personalized offering by adjusting
goods and services to the specific requirements and preferences of each client.
2. “The new interactive technologies are not enough to cement a relationship, because companies
need to change their behaviour toward a customer and not just their communication.” Explain
what this statement means. Do you agree or disagree?
The statement emphasizes a deeper shift towards customer-centricity and highlights the necessity for
businesses to go beyond surface-level changes with new technologies. In order to foster loyalty and
trust, it promotes viewing consumers as vital partners and emphasizes the significance of coordinating
sincere acts with communication initiatives. In order to genuinely address customer needs and promote
long-term engagement and mutual value creation, the focus is on changing behaviour. As a conclusion,
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the statement urges businesses to embrace a customer-centric strategy for long-term success and
growth, placing a higher priority on sincere relationship-building than on communication improvements.
3. Why should a company focus on both Attitudinal/Emotional Loyalty and Behavioural Loyalty
simultaneously?
A business should give equal weight to behavioural loyalty such as repeat business and
attitudinal/emotional loyalty (customer sentiments about the brand). Behavioural loyalty is defined as
actions motivated by habit or convenience and quantified by customer lifetime value and recurring
purchases. Customer sentiment is the focus of Attitudinal/Emotional Loyalty, which encourages
spending and brand advocacy. Through comprehension of both, an organization can establish robust
and lucrative connections, striving for clients with high levels of behavioural and emotional allegiance to
optimize success.
4. Give an example of a loyalty program. How can this program improve? Use the ‘Best Practices
for Loyalty programs’ to help answer this question.
Programs for rewarding loyal customers, such as Starbucks Rewards, increase retention, satisfaction,
and referrals. By earning stars for their purchases, members are encouraged to make more purchases
and return frequently. The program's various reward tiers give the impression of exclusivity. Customizing
rewards according to user preferences and using gamification features like leaderboards could improve
the program and increase emotional loyalty. Simplifying user registration, frequently releasing new
features, and investigating joint ventures with relevant companies are examples of best practices.
5. Do you agree or disagree that a relationship must always be characterized by some level of
emotional involvement? Why?
Emotional involvement is super important in Customer Relationship Management (CRM). It helps

companies connect with customers in a meaningful way, building trust and encouraging open
communication. This emotional connection is like the foundation that fosters customer loyalty. By
emotionally engaging with customers, companies learn about their specific needs, allowing them to
create personalized experiences that customers really like. These connections aren't just for now; they
lead to long-lasting value because emotionally connected customers tend to stick around, speak
positively about the brand, and help the success of CRM strategies. To sum it up, emotional involvement
is a key part of CRM, making relationships stronger and ensuring customers stay happy and loyal. In the
world of CRM, building these emotional connections is not just important; it's the solid base for success.
In short, the foundation of authentic relationships between company and consumer is the recognition
and expression of feelings. Emotional engagement promotes trust and true communication. By
accepting this emotional aspect, we develop relationships that are meaningful and long-lasting.
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References
Chron Small Business. (n.d.). Effects of Technology on Business Communications. Chron Small
Business. https://smallbusiness.chron.com/effects-technology-business-communications-23045/
Comparisons of Competing Models between Attitudinal Loyalty and Behavioral Loyalty

http://ijbssnet.com/journals/Vol._2_No._14%3b_July_2011/18.pdf.
Forbes Agency Council. (2017, October 24). Why Is Customer Relationship Management So Important?
Forbes. https://www.forbes.com/sites/forbesagencycouncil/2017/10/24/why-is-customer-
relationship-management-so-important/
Measuring Customer Loyalty: Behavioral & Emotional Metrics to Consider.

https://www.itagroup.com/insights/customer-engagement/measuring-customer-loyalty-
behavioral-emotional-metrics-consider.
Peppers, D., & Rogers, M. (2023). The one-to-one future: Building relationships one customer at a time.
Currency Doubleday.
Scott M. et al. (2015). The New Science of Customer Emotions, Harvard Business Review, (pp.66–74,
76) https://hbr.org/2015/11/the-new-science-of-customer-emotions
Starbucks Rewards. (n.d.). https://www.starbucks.com/rewards
The Golden Spot of Behavioural & Emotional Loyalty | Talon.One. https://www.talon.one/blog/the-
golden-spot-between-behavioral-and-emotional-loyalty-how-and-why-you-should-measure-it.
Why an emotional connection matters in customer loyalty and how to ....

https://blogs.oracle.com/marketingcloud/post/why-an-emotional-connection-matters-in-loyalty-
and-how-to-achieve-it.

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DI 302 B01 CRM Process and Patterns

Professor Kyle Jessiman

January 31, 2024

I. Mass Marketing: Metro Inc.

II. Niche Marketing: Patagonia

III. Database Marketing: Netflix

IV. 1 to 1 Relationships: Apple

Emotional involvement is super important in Customer Relationship Management (CRM). It helps

Comparisons of Competing Models between Attitudinal Loyalty and Behavioral Loyalty

Measuring Customer Loyalty: Behavioral & Emotional Metrics to Consider.

Why an emotional connection matters in customer loyalty and how to ....

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