Chapter 9 study guide
Based on the following scenario, choose the correct value for Customer Lifetime Value (CLV). Let's say you are brand loyal and exhibit brand preference for Apple computers. After you graduate high school you decide to purchase a new Toyota MacBook. Apple would like you to purchase another computer from them in the future. The company will likely spend money with the goal of maintaining a customer relationship with you, thus increasing the likelihood that you will purchase another vehicle from
$18,000
According to Hubspot, in a recent survey __% of sales professionals rated sales prospecting as the most difficult stages in the sales process. CRM systems can assist with prospecting sales targets. Please enter a number for your answer.
42
According to the FTC Section , the government has the authority to prevent unfair or deceptive trade practices. The FTC has the authority to take legal action against organizations that fail to implement and maintain reasonable data security measures, fail to publish and follow a privacy policy, and fail to provide sufficient security for personal data stored by the organization.
5 or five
According to Harvard Business School professor Clayton Christensen, there are over 30,000 new products introduced every year, and __% of these products fail.
95, ninety-five, or ninety five
Which of the following statements about how CRM systems assist businesses in targeting a market segment are true?
Analysis of customer characteristics is an important part of the target market identification process. CRM software is often used to identify an organization's target market and to provide critical insights into the profiles of these customers. An organization's target market shares common characteristics including geographic location, demographic and psychographic backgrounds, and income level
Monitoring Procurement Methods
Anticipating preferred shopping methods, customer motivation, purchase frequency, and spending habits allows businesses to be more profitable.
Qualitative Data
Attitude, Opinion, and Motivation
Which of the following statements about how CRM systems assist businesses in targeting a market segment are true? continued
CRM systems provide a variety of analytical tools, including those used to identify and understand the target market.* Organizations must precisely identify their target markets so they best utilize resources when marketing to potential and existing customers.* CRM systems are used to collect data from customer transactions. This data is used for target market identification.
Which of the following explain the importance of CRM to businesses? More than one answer can be selected.
CRM systems provide insights into customer satisfaction metrics Systems assist organizations to help synchronize customer interactions CRM is used to manage critical relationships
State-specific law that mandates disclosure about data collection policies and gives individuals the ability to access, correct, and delete personal information.
California Consumer Privacy Act (CCPA)
CRM systems and software constantly being updated to help prevent data breaches. Software that is not consistently updated is potentially at risk for data breaches.
Consistent Updates to CRM Software
Select the sources of information that a CRM system uses to collect data about current customers.
Customer Surveys
Customer Segmentation
Customers are grouped into homogenous segments where behavior can more easily be analyzed.
Personalization
Customized marketing is created based on individual customer behavior.
CRM analytics can provide insight into how customers and members of the organization interact with the CRM system. This can be used to encourage interaction and use.
Demonstrate the Value of CRM
CRM data collection can be streamlined by using analytics to determine end-user needs. A better understanding of users' unique preferences and activities can help to guide data collection.
End-user Needs
One of the benefits of using a CRM system is that data can be analyzed and provided to assist in measuring customer __. It is the value that the future lifetime revenue an organization's customers will generate minus customer acquisition costs and customer retention costs.
Equity
Governs data protection and privacy in the European Union and European Economic Area. Additionally, it governs the transfer of personal data outside the EU.
Europe's General Data Protection Regulation (GDPR)
In 2015 ___________ faced the Cambridge Analytica scandal in which the firm paid Facebook to acquire its users' personal data. It is estimated that over 87 million people were affected by this activity.
Facebook, facebook, or face book
This act regulates the gathering and use of credit reporting information.
Fair Credit Reporting Act
A _____ share of customer or share of wallet means that existing customers are spending more to purchase products or services from one organization than they are from direct or indirect competitors.
High
Customer Value and Profitability
Identification of which customers create the highest revenue is made.
Select what's true about how businesses use CRM systems to develop relationships with customers.8
Information from CRM systems can be efficiently and intelligently used to make informed business decisions and to develop relationships with their customers. CRM systems provide organizations a clear overview of their customers. Data collected by CRM systems includes customers' likes and dislikes, what content they engage with, and what they post about competitors.*
Select what's true about how businesses use CRM systems to analyze customer information.
Information is gathered from point of sale and e-commerce technology as well as through customer interactions. Customer relationship management (CRM) analytics provides insights into customer behavior that can be used to make informed business decisions. Often CRM systems use data mining to extract information from a customer database.*
According to Salesforce.com, which of the following are factors to consider when selecting a customer segmentation tool? More than one answer can be selected.
Integration Cost Data collection tools
Select the true statements about customer profitability.
It is the amount of profit an organization makes from selling products or services to a customer or group of customers over a specified time period. CRM systems are used to measure customer profitability. CP is calculated by subtracting the costs associated with sales and engagement from the revenue earned from the sales of products or services.
Select the true statements about the ethical considerations of selling customer data to third parties. Organizations legitimately collect data from individuals for a variety of purposes including for CRM. While this information is legitimately collected, many organizations go on to sell this data to third parties who often use it for marketing and demographic analysis. Consider your favorite mobile app. Have you ever read the fine print before clicking the "I agree" button? Most people have
Many organizations sell consumer data to third parties who use the data for marketing and demographic analysis. Organizations legitimately collect data from individuals for a variety of purposes including for CRM.
The design of a CRM system that collects data on customer interaction should include which of the following elements?
Monitoring customer interactions Treating customers as individuals Automation
Identity Data
Name, Address, Gender, and Date of Birth
Social Media
Organizations can leverage various of these platforms and integrate them within a CRM platform. These sites include YouTube, Instagram, Facebook, and TikTok.
Which of the following statements about CRM systems use in customer acquisition are true?
Organizations often track customer acquisition using a lead generation funnel Customers can be acquired using a number of approaches including social media, search, affiliate, referral, and email marketing. * CRM software systems track prospective customers (and current customers) through the various stages of the funnel
Select the true statements about Customer Lifetime Value (CLV).
Organizations use CLV to determine how much they should spend to acquire new customers versus how much they should spend to retain existing customers. One of the key metrics used to determine the profitability of an organization's customers.
Predictive Modeling
Prior information is used to assist in the determination of the success or failure of future endeavors.
CRM analytics often give insights that foster innovation. This information can be used by decision-makers to identify strong areas and potential growth areas.
Product Development
Analytics around this data can provide insights about what features to include or improve in a new product or service.
Product/Service Measurements
It is important to make sure staff who interact with the CRM system are properly trained and that managed access and access-levels are in place.
Proper CRM Administration
1. Select the true statements about CRM systems and how they assist businesses in qualifying potential customers.
Qualifying a potential customer occurs when an organization determines whether or not an individual or business makes sense to pursue as a potential customer. Pursuing unqualified leads can be costly to a company because spending marketing dollars to pursue them often does not succeed Many CRM software programs offer the opportunity to create customized sales funnels based on specific organizational needs and sales characteristics.
Which of the following is the correct formulas for calculating customer profitability
Revenue earned from sales - Costs associated with sales and engagement
Match the types of CRM analytics with the correct description.
See questions 29-32
Match the step to prevent CRM data breaches to the correct explanation. Instructions
See questions 36-38
Match the strategy for how customer relationship management market analytics improve the quality of customer data collection to the correct explanation.
See questions 46-48
Match the privacy law or regulation to the correct explanation. Instructions
See questions 53-56
Match the terms concerning how customer relationship management market analytics are used to develop new products to the correct narrative. Instructions
See questions 60-63
It is important to take security measures to protect data. This can be accomplished by ensuring firewalls and routers are secured and that all software is up to date.
Server Security
Which of the following are considered customer interaction metrics? More than one answer can be selected.
Service Sales Marketing
Customer interaction encompasses all the communication that takes place between a customer and an organization. This includes which of the following:
Social media Email Traditional mail
CRM analytics can provide information about where data erosion occurs and how processes can be improved to minimize it.
Standardized Data Collection Processes
This is a US law that governs personal information collected by financial institutions.
The Gramm Leach Bliley Act
According to Salesforce.com, segmented marketing campaigns have been shown to generate an average of a 760% increase in revenue. When selecting a customer segmentation tool Salesforce.com has identified four factors to consider. One of these factors is integration. Integration is:
The ability to efficiently link data from various sources and platforms.
Select the true statements about how CRM market analytics improve the quality of customer data collection.
The quality of this data collected from various sources including point of sale and social media impacts the overall effectiveness of a CRM system. CRM relies heavily on data that is collected from a variety of sources including point of sale, e-commerce, social media, and email marketing. Analytics provided by CRM help to improve business processes and efficiencies.
According to research by Risk Based security, there were 2037 publicly reported data breaches in the first half of 2020.
True
Analytics
Used to uncover trends in the data that is collected about customers.
CRM systems can be designed to capture data about why users are buying a product or service and how they are using it.
User Experience
Customer Surveys
Utilized to collect feedback from customers. They can be deployed using a variety of means including paper, smartphones, email, and over the phone.
CRM analytics can be used to test the viability of products or services. This viability check results from the analysis of consumption trends and usage behaviors.
Variability
Which of the following are popular CRM options that are used to assist with sales prospecting?
Zoominfo Clearbit Prospector LinkedIn Sales Navigator
Share of wallet is also known as share of ___________.
customer
By 2021 customer relationship management systems, as predicted by the Gartner IT Services company, will be the single largest revenue area of spending in __________ software.
enterprise
Customer __________ is the value that the future lifetime revenue an organization's customers will generate minus customer acquisition costs and customer retention costs.
equity
Research shows that qualified sales leads result in better close rates and a higher return on __________ (ROI). This process can be difficult to execute without the assistance of CRM software.
investment or investments
CRM software assists organizations in identifying marketing qualified __________ (MQLs).
leads or lead
Match the term regarding sources of customer data to the correct statement.
see questions 10-13
