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  Customer 

relationship 

management (CRM) 

  An approach to building 

and  sustaining   long‑  term 

business with customers.   

  Customer  life  cycle 

  The  stages  each 

customer will pass 

through  in  a   long‑  term 

relationship through 

acquisition, retention and 

extension.   

 Figure 9.1 

 The four classic marketing activities of customer relationship 

management       

Customers

Customer extension

• ‘Sense and Respond’

• Cross-selling and up-selling

• Optimise service quality

• Use the right channels

Customer retention

• Understand individual needs

• Relevant offers for continued

  usage of online services

• Maximise service quality

• Use the right channels

Customer selection

• Who do we target?

• What is their value?

• What is their life cycle?

• Where do we reach them?

Customer acquisition

• Target the right segments

• Minimise acquisition costs

• Optimise service quality

• Use the right channels

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