chapter 10
Why do so many CRM programs fail?
Firms concentrate more on the CRM software instead of taking care of customers
Tire manufacturer Firebridge sells tires to retail firm A. Average annual sales for firm A is $55,000. Average profit margin is 15%. The expected lifetime is 10 years. Using a discount rate of 10 percent, calculate the Customer Lifetime Value of firm A and choose the closest answer below:
$50,693
Firms can safeguard customer information by doing which of the following?:
Both A & B -Allow customers to opt-in and out of mailing lists -Allow customers to access their accounts online to view information collected about themselves
A practical independent measure firms can take to improve information security is:
Continuously monitor employee desktop applications, e-mails and phone calls
The online retailer Ecatalog.com has decided to send consumers of the new John Grisham book an e-mail with suggestions for books with similar themes and has also offered them a 20% discount if those suggested books were purchased. This type of marketing/promotion is an example of:
Cross-selling
Companies work very hard to reduce the number of their present customers which never return. This customer defection is often referred to as:
Customer churn
Which of the following customer service elements can be classified as examples of posttransaction elements?
Customer complaint resolution
The element of a CRM program in which a customer's lifetime value is calculated is referred to as:
Customer value determination
Users in a company can retrieve and study a large amount of information about consumers by housing that information in a centralized database that is commonly referred to as a:
Data warehouse
When an organization attempts to offer the right products and services to customers at the right time through the offer of individual promotions tied to specific events, like birthdays and anniversaries, this is referred to as:
Event-based marketing
All of the following are recommended for designing and implementing a successful CRM program EXCEPT:
Expect employees to 'learn on the job' and adapt their way of working
Your top sales executive leaves your company to work for a competitor. Fortunately, all of her notes regarding prior dealings with customers have been captured in a:
Knowledge management system
The use of quick response codes (QR Codes) to retrieve marketing information is a type of:
Mobile marketing
Your company's marketing efforts allow customers to "opt-out" of receiving email advertisers. This is referred to as:
Permission marketing
You are a manager at Sunnydale Appliances. A customer who recently purchased a dishwasher contacts you with a problem and requests warranty information. According to the text, this is an example of:
Posttransaction customer service
The element of a CRM program involved with the use of data-mining software and customer behavior analytics is:
Predicting customer behaviors
A system which allows sales managers to obtain current information and reporting capabilities regarding each salesperson's activities on each customer's account is referred to as
Sales territory management system
Which of the following are required elements of an effective CRM initiative?
Segmenting customers
Which of the following is one of the most basic and very important activities of CRM?
Segmenting customers
Cloud based CRM services are particularly useful for:
Small companies with limited resources
You work for a company that segments customers by demographic information markets specifically to those customers who are located in the Los Angeles area. This is an example of:
Target marketing
Which of the following is a U.S. law which requires compliance by all firms engaged in handling customer information:
The U.S. Patriot Act
According to the text, firms are using social media for all of the following EXCEPT:
To obtain leads for hiring new employees
All of the following are required elements for the development of an effective CRM initiative EXCEPT:
Utilization of MRP
CRM can allow organizations to identify which customers have stopped purchasing products or services from the organization so that the organization can target those former customers for future promotions and/or perhaps to investigate why they stopped purchasing in the first place. The CRM attribute is called:
Customer defection analysis
