Question

The use of big data can enhance the effectiveness of CRM systems. Discuss the different means through which big data can help a business to perform the three core functions of Customer Relationship Management (acquisition, retention and extension).

Please explain and elaborate how big data can help to create opportunities for the business in its endeavour to acquire or retain customers.

consider a leading or major firm in any typical industry and assess the acquisition, retention and extension strategies which the firm is currently using

Answer 1

Big data can help a business to perform the three core functions of Customer Relationship Management ( acquisition, retention and extension ) by analysing customer behaviour, their purchasing and use, developing new products and services, promotions and marketing strategies for customer retention, acquisition and extension. It gives information about any gaps in product performance and services. Big data can help in predicting customer problems or any improvements in product and service. Thus, the customer acquisition, retention and extension is based on facts and actual customer needs.

Considering example of Netflix, the company is using customer related data for customer retention, acquisition and extension. The company develops products based on the data it collects related to its customer behaviour, preferences and trends that are prevailing in entertainment industry. It customizes the content for its customers for better customer response, acquisition, retention and extension strategies to stay competitive based on the data collected about customers.