Quiz #7: Customer Relationship Management

Which of the following statements about the application of CRM systems to customer qualification are true?

1. An organization's goal in customer qualification is to decide whether pursuing relationships with specific customers make good business sense. 2. Many CRM software programs can create customized sales funnels based on specific organizational needs and sales characteristics. 3. Pursuing unqualified leads can be costly to a company.

Describe how customer relationship management (CRM) systems help businesses develop relationships with customers. More than one answer may be correct.

1. CRM systems provide organizations a clear overview of their customers. 2. Information from CRM systems can be efficiently and intelligently used to make informed business decisions and to develop relationships with their customers. 3. Data collected by CRM systems includes customers' likes and dislikes, what content they engage with, and what they post about competitors.

Which of the following statements about sources of customer data are correct?

1. Customer surveys collect feedback from customers. 2. Data collection from social media platforms can be integrated within a CRM platform. 3. Analytics are used to uncover trends in the collected data.

From the following list, select all the ways in which CRM systems assist businesses in targeting a market segment.

1. They are used to identify a target market and provide insights into the profiles of these customers. 2. They help identify the common characteristics of target market members, including geographic location, demographic and psychographic backgrounds, and income level. 3. They provide analysis of customer characteristics, which is an important part of the target market identification process.

From the following options, select three sources of information that a CRM system uses to collect data about current customers.

1. customer surveys 2. social media 3. monitoring procurement methods

From the following list, select the tasks involved in sales prospecting that a CRM and an integrated prospecting tool can assist with.

1. identifying potential customers (prospects) 2. designing effective marketing strategies to reach prospects 3. converting identified prospects into customers

From the following list, select all the customer characteristics that are commonly analyzed by a CRM and used to create an ideal customer profile.

1. where customers are located 2. what customers buy and how often 3. why customers make their purchase

Which privacy law governs the transfer of personal data outside of the geographic location the law was written in?

Europe's General Data Protection Regulation

Makoto and Rebecca want to hire a nanny for their 6-month-old baby. Before allowing someone into their home to watch their child, they are planning on running a comprehensive background check, including a credit check. Which law specifies whether Makoto and Rebecca are legally allowed to access potential candidate's credit information?

Fair Credit Reporting Act

Which CRM-compatible sales prospecting tool utilizes the profiles and connections on a social media platform to generate prospects?

LinkedIn Sales Navigator

A company is trying to determine why users are deleting or no longer engaging with their app on a regular basis. Which of the below is an example of how the company could use CRM to make this determination?

The company could use CRM to determine what part of the app users who deleted it were in right before the app was deleted.

What is the MOST direct way in which customer relationship management (CRM) systems can help businesses increase their sales?

by helping them identify and attract prospective customers

The information needed to calculate share of customer is provided, in large part, by

customer relationship management systems.

One of the benefits of using a CRM system is that data can be analyzed and provided to assist in measuring the value that the future lifetime revenue an organization's customers will generate minus customer acquisition costs and customer retention costs. This value is referred to as customer

equity

Apple has a very high customer equity (CE) value. Apple has gained this high CE value due to

extreme customer loyalty.

One benefit of using a CRM system to segment a market (rather than another type of market segmentation tool) is that a good CRM tool

facilitates using the company's own, collected data about customers.

According to research by Risk Based security, there were 2037 publicly reported data breaches

in the first half of 2020.

Customized communication is best described as

matching the message to the individual customer.

What is a key advanced technology behind CRM analytics?

online analytical processing

To calculate an organization's customer equity (CE) value we first determine

the future lifetime revenue the organization's customers will generate.