PL activity week 12

What does CRM stand for?

• Customer Revenue Management

• Customer Resource Management

• Customer Retention Management

• Customer Relationship Management

Answer explanation

CRM stands for Customer Relationship Management. It focuses on managing a company's interactions with current and potential customers, making it essential for improving customer satisfaction and retention.

What is the primary focus of Operational CRM?

• Strategic analysis

• Day-to-day front-office operations

• Data warehousing

• Supplier management

Answer explanation

The primary focus of Operational CRM is on managing day-to-day front-office operations, such as sales, customer service, and marketing, to enhance customer interactions and improve efficiency.

What does the acronym CSF stand for?

• Customer Satisfaction Framework

• Customer Service Feedback

• Core Strategic Focus

• Critical Success Factors

Answer explanation

The acronym CSF stands for Critical Success Factors, which are essential areas of activity that must be performed well for an organization to achieve its goals. The other options do not accurately represent this concept.

What is the purpose of benchmarking?

• To measure employee satisfaction

• To compare system results to optimal performance

• To analyze sales growth

• To track customer complaints

Answer explanation

The purpose of benchmarking is to compare system results to optimal performance, allowing organizations to identify areas for improvement and enhance efficiency.

What is the main benefit of using a Customer Relationship Management (CRM) system?

• Improved employee productivity

• Enhanced customer engagement

• Increased product variety

• Lower operational costs

Answer explanation

The main benefit of a CRM system is enhanced customer engagement, as it helps businesses manage interactions, understand customer needs, and build stronger relationships, ultimately leading to increased satisfaction and loyalty.

What does the term 'customer segmentation' refer to?

• Dividing customers into groups based on similar characteristics

• Tracking customer purchase history

• Analyzing customer complaints

• Measuring customer satisfaction levels

Answer explanation

The term 'customer segmentation' refers to dividing customers into groups based on similar characteristics, allowing businesses to tailor their marketing strategies effectively.

What is the role of data mining in customer relationship management?

• To enhance product design

• To identify patterns in customer behavior

• To manage supply chain logistics

• To improve employee training programs

Answer explanation

Data mining plays a crucial role in customer relationship management by identifying patterns in customer behavior. This insight helps businesses tailor their strategies to enhance customer satisfaction and loyalty.

Which of the following is a key feature of Analytical CRM?

• Managing customer interactions

• Data analysis for customer insights

• Automating sales processes

• Facilitating customer service

Answer explanation

The key feature of Analytical CRM is 'Data analysis for customer insights', as it focuses on analyzing customer data to gain insights that drive business decisions, unlike other options that pertain to operational aspects.

Which component of CRM focuses on statistical and demographic analysis?

• Market Research

• Sales Force Automation

• Data Mining and Analytics

• Customer Service Support