Module 5 Customer Relationship Management

Consumers should have the ability to view the data collected.

Access

An individual clicks on a link to request more information about a product. A salesperson emails the prospect information and pricing and then offers to call with more information. Which stage of the customer life cycle does this series of actions illustrate?

Acquisition

A manager gives feedback to a team that their core customers were very satisfied. Which benefit to customer relationship management (CRM) is being used by this manager?

Analytical

What is a benefit of knowing a customer's lifetime value?

Assess profitability of marketing campaigns.

A customer is choosing either Company A or Company B chocolate chip cookies. Ultimately, the customer chooses the Company A cookies because of his or her preference for that manufacturer's type of product. Which driver of customer equity does this individual's decision represent?

Brand equity

Consumers should be able to control how their data is used by opting in or opting out.

Choice

Which U.S. federal act establishes standards for commercial email?

Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM)

A salesperson for a medical equipment company provides marketing materials for the practice manager at a doctor's office. After three months, the practice manager orders three products. Which stage of the customer life cycle does this series of actions illustrate?

Conversion

A clothing store uses a customer relationship management (CRM) system and notices that when one line of the clothing is purchased, customer retention is low. What is a benefit of CRM for this store?

Customer satisfaction can be improved by tracking buyer behavior.

A store has a policy that all customer-facing employees can give away one $5 flower bouquet a day to customers who they feel need a bright spot in their day. Which aspect of customer satisfaction is being demonstrated by this store policy?

Empowerment

A customer has contacted a company for buying a car and is asking questions about gas mileage and performance. The company's representative is careful to provide appropriate prepurchase information to the potential customer. Which piece of information should be transferred to a customer at this stage of communication?

Establishing appropriate expectations

How does a customer relationship management (CRM) system benefit a customer?

Individualizes marketing and sales messages to customers

What is considered a less tangible benefit of customer lifetime value?

Loyalty to the brand

A sales manager is reviewing sales reports from the previous quarter and wants to increase sales in the upcoming quarter by focusing on existing customers with a high customer lifetime value. What is one way to maintain an ongoing relationship with these customers?

Marketing

Consumers should be provided with information about a company's information practices before any personal information is collected from them.

Notice

How does a customer relationship management (CRM) system improve services to the customer?

Provides information for targeted marketing and sales purposes

Which is a benefit that a customer relationship management (CRM) can provide a company?

Providing data to the company across the customer life cycle

A beverage company purchases advertising to introduce a new line of energy drinks. Which stage of the customer life cycle does this action illustrate?

Reach

A company sends an email to its customers with a 20% off coupon, if they make a purchase within the next 48 hours. Which stage of the customer life cycle does this action illustrate?

Retention

A person has a computer using Platform A. When it comes time to replace the computer, the Platform A computer costs $1,000, while a comparable Platform B computer costs $500. The person chooses to purchase the Platform A computer despite the difference in cost. Which driver to customer equity does this individual's decision represent?

Retention equity

What is a driver for customer equity?

Retention equity

Information collectors should ensure that the data they collect is protected from incorrect usage or access.

Security

What is the purpose of customer relationship management (CRM) software?

Supporting processes by storing information about customers

How is customer satisfaction defined?

The feeling a customer experiences when an offering meets or exceeds expectations

What is contained in a nondisclosure agreement (NDA)?

The information that is proprietary and how the seller can use that information

What does customer equity measure?

Total combined customer lifetime values

What should a sales manager use to determine customer lifetime value?

Total profit from all customer purchases

What is customer relationship management (CRM)?

Using processes implemented by a company that enhance customer interaction

Which action accurately reflects when permission marketing should be used by a manager?

When offering marketing messages to buyers