Customer relationship management consists of four elements: <html> <img src="/static/files/MBI/Module%208/customerrelationshipmanagement.PNG" width=400> </html> * ''Customer selection'' ** What criteria determine who will be our most profitable customer? ** This refers to customer segment targeting which is addressed in [[Market Segmentation]]. * ''Customer acquisition'' ** How can we acquire this customer in the most efficient and effective way? ** Includes promotions ** Includes incentives like *** Acquire new customers *** Entice existing customers to use the company's internet based offering. * ''Customer retention'' ** How can we keep this customer for as long as possible? ** Customer retention aims at: *** Turning one time customers into repeat-purchase customers *** Keeping customers for as long as possible in the online channel * ''Customer extension'' ** How can we increase the loyalty and the profitability of this customer? ** Maximize the life time value for a customer. Companies achieve this by expanding scope through [[Cross selling]].