CHATER 3

What is a Customer Relationship Management (CRM) strategy?

• A plan to grow sales and improve customer service through processes, actions, and technology

• A plan to reduce costs and increase employee satisfaction

• A plan to outsource customer service operations

• A plan to eliminate marketing efforts

Why is customer retention important?

• It is 5 to 7 times cheaper than acquiring new customers

• It requires less effort than acquiring new customers

• It leads to immediate profit gains

• It is a regulatory requirement

What is a key step in creating a CRM strategy for your business?

• Studying the market and knowing your positioning

• Defining your target customer with buyer characters

• Investing in CRM software

• Setting Key Performance Indicators (KPIs) for each team

What is the purpose of establishing processes for a 360° customer experience?

• To reduce customer interactions

• To limit customer access to information

• To provide an enjoyable customer experience at all touch points

• To increase customer wait times

What is the main benefit of investing in CRM software?

• Collaboration between teams, storing customer data, and tracking interactions

• Reducing customer engagement

• Limiting access to customer data

• Increasing manual processes

What is the difference between customer retention and customer acquisition?

• Customer retention involves bringing new consumers, while customer acquisition focuses on keeping current consumers

• Customer acquisition involves bringing new consumers, while customer retention focuses on keeping current consumers

• Both terms refer to the same process

• Neither term is related to customer management

What is a common challenge faced by businesses in customer retention?

• High churn rate

• Low competition

• Excessive cross-selling

• Limited customer base

What is a strategy used in customer recovery for likely defectors?

• Improvement strategy: Repairing damaged products, service recovery

• Stimulation strategy: Rebates, gifts

• Compensation strategy: Replacement of damaged products, reimbursement

• Persuasion strategy: Adjustment of product offer, innovation to meet customer needs

What is a step to grow your business through customer acquisition?

• Restitution strategy

• Persuasion strategy

• Improvement strategy

• Stimulation strategy

What is a powerful customer retention strategy to grow your business?

• Implementing customer acquisition programs

• Ignoring customer feedback

• Reducing employee satisfaction

• Focus on creating a positive customer experience