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The data-rich marketing environment of today's business practice combined with the facilitated availability (and employability) of sophisticated decision-making tools give rise to the emerging popularity of the marketing engineering approach to decision-making. In this course, we focus on a very specific, but crucial aspect of marketing decision-making, namely the efficient management of customer-firm relationships.

For many companies, the growing importance of "Customer Relationship Management" (CRM) entailed a shift from a product-centric firm strategy towards focusing on the individual customer as the most critical unit of marketing decision making. Such a customer-centric view sees customers as intangible assets of a firm, which need to be valued and managed carefully. CRM has, therefore, become a crucial focus for many companies as it promises to be a key determinant of future profitability.

However, one of the major difficulties in driving this shift from a product-centric approach towards a customer-centric mindset is the lack of technical skills. The topic of CRM entails a broad set of concepts that could not possibly be covered in one single course, which is why this course focuses on exploring the basic principles behind such concepts. More specifically, the course of Marketing Engineering and Marketing Models will expose students to the problems associated with customer-centricity and cover some of the models that can be used in studying and solving such problems.

In this course, we address the strategic and operational principles that are at the heart of every successful CRM implementation. We will develop an understanding of concepts such as customer centricity, customer lifetime value, customer equity, or customer retention, and discuss how data-rich environments and data science (will) impact marketing practice. CRM strategy implementation in the areas of loyalty programs, services, and complaint management will be examined. The course will expose participants to an integrated view of CRM theory and practice, with case study analyses and a customer centricity simulation game constituting major course elements.

The aim of this course is to develop an understanding of a customer-centric view of the firm and implications for CRM applications and marketing practice. More specifically, the course will provide students with insights on:

• What are the fundamental differences between product- and customer-centricity?
• How can customer-centricity be translated into practice?
• What is the idea and the specific managerial value of building and sustaining long-term customer relationships?
• What is the role of measuring and managing customer satisfaction, customer loyalty, customer profitability, and lifetime value?
• What concepts, metrics, and tools help marketing "engineers" to successfully manage their customer base?
• What is the strategic importance of CRM, and how are CRM strategies implemented?

Students must attend at least 80% of the classes. Presence is monitored by small in-class quizzes and is included in the grade accordingly.

The course integrates various teaching methods such as interactive lectures, class discussions, case analyses, and group work. Substantial classroom discussion is encouraged and expected. Attendance and participation in class discussions are critical to the success of the course.

Grading will be based on a ranking approach. For each and every component, the best student(s) will be awarded full points and the remaining students will be graded in proportion to their performance in comparison to the best student. Grading will be based on components listed below. 

Students are required to turn in assignments following the instructions and on time. Failures to comply with the instructions will automatically result in a 20% penalty. In addition, delays will result in a 10 percentual points penalty for each minute (i.e. 10% if the assignment is delayed for less than a minute, 20% if the assignment is delayed for less than 2 minutes, etc.).

In-class Participation (20%)

Your in-class participation will be graded based on short in-class quizzes (20%). Your attendance is required to get these points. During class you will be randomly selected to share your views on the matters being discussed and there will be several quizzes throughout the sessions. 

Blue Apron case study (15%)
The case study should be solved individually and discussed in class. Further details will be provided.

Capital One case study (15% + 10%)

You will hand in an assignment regarding the Capital One case study (15%). After everyone has submitted their assignments, you will be asked to review your peer’s work. By submitting your peer grading, you will receive 10 points (out of 100).

Group Work (10% + 5% + 20% 5%)

You will develop a final project with your team. Every team’s performance will be assessed by the remaining teams. There will also be in-group evaluations. Details will be provided during the course introduction.

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Basic understanding of Excel.

Good understanding of Financial Accounting and Marketing principles.

Upon request.

Fraud and plagiarism will be punished by failing the course.