Customer Relationship Management (CRM) Quiz

What does CRM primarily focus on?

• Recruiting sales staff
• Building and maintaining profitable customer relationships
• Reducing marketing expenses
• Creating product advertisements

What is 'customer lifetime value' in CRM?

• The total number of customers a company has
• The value of all purchases a customer makes over their lifetime of patronage
• The annual revenue generated by customers
• The cost of acquiring a new customer

Which of the following is NOT a characteristic of CRM?

• Customer-oriented approach
• Creating value for the company
• Using information technology
• Completely eliminating customer complaints

What is a key objective of CRM in attracting new customers?

• Reducing marketing budgets
• Understanding target customers' needs
• Eliminating competition
• Standardizing product offerings

Why is retaining existing customers considered financially important?

• Existing customers are always cheaper
• It costs more to attract new customers than to retain existing ones
• New customers always generate more revenue
• Existing customers never switch to competitors

What role does information technology play in CRM?

• To completely automate customer interactions
• To record and store customer information
• To replace human customer service
• To generate random marketing strategies

What is the primary purpose of a loyalty program?

• To increase customer acquisition costs
• To make it more difficult for customers to switch brands
• To reduce product quality
• To eliminate customer interactions

what is typically cheaper for a business?

• Acquiring new customers
• Retaining existing customers
• Developing new products
• Expanding marketing budgets

What characterizes a long-term customer relationship?

• Frequent financial transactions
• Regular interactions and emotional connection
• Minimal communication
• One-time purchases

What is a key characteristic of a dedicated personal assistance relationship?

• Minimal customer interaction
• A specific representative devoted to each client
• Automated responses
• Generic customer support