Customer Relationship Management

Catalog description

This course employs a number of overlapping frameworks. Foremost among these is the concept of the customer lifecycle. This concept decomposes customer interactions into birth, growth and death. Birth involves customer acquisition or first sale. Growth involves customers buying more items and spending more on these items (denoted cross-selling and upselling). Death involves leaving the firm, typically called attrition or churn. Collectively, the stages of the customer lifecycle imply a revenue and profit stream that can be managed. The financial discounting of this profit stream yields the net present value of a customer, often called customer lifetime value, or CLV for short. Summing CLV across customers — or customer equity — is a major component of the value of the firm, net of investments. This course will develop quantitative methods to improve the efficiency and effectiveness of customer relationship management (CRM) activities. We will introduce an array of CRM-specific models, tools, and frameworks and apply them to real-world problems. This course is for MQM: Business Analytics students.