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How does Reichheld suggest that the 5 percent increase be brought about He has some very ingenious and valid ideas. The book is lled with excellent suggestions. Here are only a few of them: Improve employee loyalty by increasing the employee retention rate (since retained employees help to retain customers). Recruit the right sort of customers to begin with (some customers are inherently loyal, and others are inherently disloyal). Change the commission system to reward retention as much as or more than acquisition. Nowhere in Reichheld s book does he suggest building a huge data warehouse and purchasing CRM software to go with it. If we had done this, we would have had to factor into Tables 2-6 and 2-7 the cost of the CRM needed to produce the 5 percent increase in the retention rate. The 15 percent growth in net present value might disappear or even become negative if we were to do so. So, unfortunately, CRM proponents have been using numbers from Reichheld s book to justify their programs without any solid justi cation in the book whatsoever.

Note The term lambda expression comes from the lambda calculus, which was developed in the 1920s and

1930s by mathematician Alonzo Church and others. The lambda calculus is a system for representing functions and uses the Greek letter lambda ( ) to represent a nameless function. More recently, functional programming languages such as Lisp and its dialects use the term to represent expressions that can be used to directly describe the definition of a function, rather than using a name for it.

There is a fundamental disconnection between the goals of CRM and the results. If you have invested millions of dollars and you have a wonderful data warehouse and analytic software, then what How do the data warehouse and software increase the retention rate Somehow, you are supposed to take the software and change customers behavior. The CRM Forum (www.crm-forum.com) lists three reasons why CRM usually fails:

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This simple transformation is less verbose and looks cleaner, but it only saves you six characters. There s more, however, that the compiler can infer, allowing you to simplify the lambda expression further, as shown in the following code. From the delegate s declaration, the compiler also knows the types of the delegate s parameters, so the lambda expression allows you to leave out the parameter types, as shown in the assignment to le2. Parameters listed with their types are called explicitly typed. Those listed without their types are called implicitly typed.

this.spriteFont = spriteFont; this.menuTitle = menuTitle; this.backgroundImage = backgroundImage; } public void AddMenuItem(string itemText, MenuWindow itemLink) { MenuItem newItem = new MenuItem(itemText, itemLink); itemList.Add(newItem); } public void WakeUp() { windowState = WindowState.Starting; } Next, here are the methods that update the menu. Note that the ProcessInput method is called only on the currently active menu. public void Update(double timePassedSinceLastFrame) { if ((windowState == WindowState.Starting) || (windowState == WindowState.Ending)) changeProgress += timePassedSinceLastFrame / changeSpan.TotalMilliseconds; if (changeProgress >= 1.0f) { changeProgress = 0.0f; if (windowState == WindowState.Starting) windowState = WindowState.Active; else if (windowState == WindowState.Ending) windowState = WindowState.Inactive; } } public MenuWindow ProcessInput(KeyboardState lastKeybState, KeyboardState currentKeybState) { if (lastKeybState.IsKeyUp(Keys.Down) && currentKeybState.IsKeyDown(Keys.Down)) selectedItem++; if (lastKeybState.IsKeyUp(Keys.Up) && currentKeybState.IsKeyDown(Keys.Up)) selectedItem--; if (selectedItem < 0) selectedItem = 0;

If there s only a single, implicitly typed parameter, you can leave off the parentheses surrounding it, as shown in the assignment to le3. Finally, lambda expressions allow the body of the expression to be either a statement block or an expression. If the statement block contains a single return statement, you can replace the statement block with just the expression that follows the return keyword, as shown in the assignment to le4. del le1 le2 le3 le4 = delegate(int x) { = (int x) => { = (x) => { = x => { = x => return return return return x x x x x + + + + + 1; 1; 1; 1; 1 } } } } ; ; ; ; ; // // // // // Anonymous method Lambda expression Lambda expression Lambda expression Lambda expression

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