Understanding Customer Behavior

The video discusses the importance of Customer Relationship Management (CRM) in modern marketing. It explains how CRM involves collecting data to track individual customer activities, allowing businesses to understand customer needs better. Key benefits include determining customer lifetime value and identifying trends in customer behavior. The video also covers strategies for responding to changes in customer behavior, emphasizing CRM's role in enhancing customer understanding and meeting their needs.

What is the primary goal of Customer Relationship Management (CRM)?

• To automate customer service

• To track individual customer activities

• To reduce marketing costs

• To increase the number of customers

How does CRM help businesses in terms of customer lifetime value?

• By increasing the number of products sold

• By automating customer interactions

• By reducing the cost of goods sold

• By predicting the long-term profit from a customer

What is one of the key benefits of understanding customer lifetime value?

• It helps in reducing employee turnover

• It automates the sales process

• It increases the number of new customers

• It allows businesses to predict future profits

Why is it important to identify trends in customer behavior?

• To automate customer feedback

• To reduce product prices

• To adjust marketing strategies accordingly

• To increase the number of employees

What action might a business take if a customer's buying pattern changes unexpectedly?

• Send a coupon to re-engage the customer

• Ignore the change

• Reduce the quality of service

• Increase the price of products