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WorksheetsCustomer Relationship Management
Total questions: 51
Worksheet time: 3hrs 33mins
CRM is the process of carefully managing detailed information about individual customers and all customer ________________ _______________ to maximize loyalty.
(a)
CRM is a company-wide business strategy designed to optimize which of the following:
customer satisfaction
branding
revenue
expenses
The ultimate goals of CVM are to:
analyse individual data on prospects and customers
develop marketing strategies
acquire and retain customers
drive customer behaviour
The third step in the CRM System Flow Model.
Identify customer relationships
Leverage customer information
Identify best customers
Capture customer data based on interactions
The second most important group of persons in the modern customer-oriented company.
customers
middle management
frontline people
top management
In the modern customer-oriented company, which managers must be personally engaged in knowing, meeting and serving customers.
top management
middle managers
first-line managers
managers at all levels
A customer-centric philosophy is one in which the company ____________ its product and service offering based on ________ generated through interactions between the customer and the company.
(a)
Customer-centric companies focus on which of the following activities?
empowerment
sales
learning
managing knowledge
Empowerment requires (a) of authority to solve customers' problems quickly.
In customer-centric companies, learning is an informal process of collecting customer data through customer _____________ and _____________ on product or service performance.
(a)
Knowledge management is the process by which learned information from customers is ____________ and ___________ to enhance the relationship between customers and the organization.
(a)
CRM differs from other strategic initiatives by its ability to establish and manage (a) with its current customer base.
In CRM, companies focus on past relationships with customers as one of the four types of important interactions.
True
False
Touch points are all possible areas of a business where customers (a) with that business.
In CRM, the interest is on quantity of data collected rather than on the quality of data collected.
True
False
A data warehouse allows a company to (a) information across all functional departments of the company.
A database is a collection of data that can be accessed and (a) by computer software.
A CRM database focuses on collecting all of the following vital statistics on consumers EXCEPT
Family size
Purchasing habits
Transaction methods
Product usage
A compiled customer list is developed by gathering names and addresses from telephone directories and membership rosters and is the same as a response customer list.
True
False
Multinational companies building worldwide databases have the following challenges.
differences in language
differences in staff mix
differences in computer systems
differences in data collection methods
In general, 20 percent of a company's customers generate 80 percent of its revenue.
True
False
Used to find hidden patterns and relationships in stored data.
database
data warehouse
data mining
data collection
The process of breaking large groups of customers into smaller, more homogeneous groups
customer value analysis
customer segmentation analysis
customer profitability analysis
predictive modeling
A customer segment consists of customers with similar demographic, geographic and psychographic traits.
True
False
Identifies those customers most likely to purchase again based on how long ago they purchased, how often they purchased and the amount of money spent.
Recency-Frequency-Monetary Analysis
customer profitability analysis
customer value analysis
predictive modeling
Involves examining how customers in a specific segment rate the company's performance against a specific major competitor on an individual attribute or benefit basis.
customer segmentation analysis
customer value analysis
RFM analysis
customer profitability analysis
Customer-Perceived Value (CPV) is the difference between the prospective customer's evaluation of all the benefits and costs of an offering and the perceived alternatives.
True
False
Which of the following are determinants of CPV?
image benefit
time cost
energy cost
personnel benefit
Involves Activity-Based Costing which attempts to identify the real costs associated with serving each customer.
customer value analysis
predictive modeling
customer profitability analysis
lifetime value analysis
In Customer-Product Profitability Analysis a customer who buys one profitable product and two unprofitable products is categorized as a mixed profitability customer.
True
False
A data manipulation technique that projects the future value of the customer over a period of years using the assumption that marketing to repeat customers is more profitable than marketing to first-time buyers.
customer profitability analysis
customer value analysis
predictive modeling
lifetime value analysis
Customer Lifetime Value (CLV) is the net present value of the stream of future profits expected over the customer's lifetime purchases ensuring that the appropriate discount rate is applied.
True
False
Lifetime Value Analysis offers the following benefits.
Identifies how much a company has to spend to acquire new customers
Targets potentially profitable customers
Identifies how much a company has to spend to retain customers
Helps to determine the projected lifetime of the company
A data manipulation technique in which marketers try to determine what the odds are that a different response or purchase than occurred in the past will occur in the future.
predictive modeling
lifetime value analysis
customer profitability analysis
data mining
Identifying the most profitable customers and prospects through data mining and then designing tailored marketing strategies to best appeal to the identified segments is commonly referred to in CRM as (a) customer information.
The marketing (a) identifies the percentage of potential target market at each state in the decision process, from merely aware to highly loyal.
Which of the following should be goals in managing a company's customer base?
reduce customer defection
terminate low-profit customers
focus on high-profit customers
increase customer longevity
To build customer loyalty it is essential that company's create institutional ties with customers.
True
False
(a) communities are a specialized community of consumers and employees whose identification and activities focus around the brand.
Impression management is a value creation practice that involves grooming, customizing and empathizing.
True
False
When a company ensures that its brand and marketing are as personally relevant as possible to as many customers as possible it is practising (a) marketing.
Based on the premise that marketers can no longer use "interruption marketing" via mass media campaigns.
personalizing marketing
permission marketing
mass marketing
segmented marketing
Based on the premise that marketers can no longer use "interruption marketing" via mass media campaigns.
personalizing marketing
permission marketing
mass marketing
segmented marketing
When marketers help consumers become evangelists for brands by providing them resources and opportunities to demonstrate their passion they are practising customer (a) .
Recommendations by a relative/friend is a stronger influence on consumer choice than customer reviews.
True
False
Studies show that while customers are dissatisfied with their purchases about 25 percent of the time, only about 15 percent complain.
True
False
Studies show that if a complaint is resolved quickly by a company up to 95 percent of customers will continue to do business with that company.
True
False
Dissatisfied customers will share their dissatisfaction with others more than satisfied customers will share their satisfaction with others when it comes to resolving customer complaints.
True
False
The growing volume of information on consumer databases has increased the vulnerability to unauthorized access and use of consumer data.
True
False
There are no policies and laws governing what businesses can do with their consumer information.
True
False
The willingness of companies to sell their consumer data to third parties has eroded consumer trust.
True
False
