CISM Ch. 12
Refer to IT's About Business 12.1 - Amazon: Truly Superb Customer Service: Amazon's optimized product information pages include all of the following except for ________.
Actual product delivery times
An example of a low-end system is
Amazon, which uses its CRM system to recommend books to returning customers.
Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors. She has purchased blank receipt books to use when she makes a sale to gather the information about the transaction. This is part of her
Analytical CRM
_____ creates statistical models of customer behavior and the value of customer relationships over time.
Analytical CRM
__________ are information systems designed to support an organization's CRM strategy.
CRM systems
________________ help organizations plan campaigns that send the right messages to the right people through the right channels.
Campaign management applications
_____ includes those areas where customers directly interact with the company.
Customer-facing CRM
_______________________ is the component of an operational CRM system that automatically records all of the components in a sales transaction process.
Sales force automation (SFA)
Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the school's monitors that would display in the dining halls and student union. Which of the following customer touch points will give Haya the most information after her first weekend of selling?
She should physically interact with customers when they visit her store.
Which of the following statements about loyalty programs is false?
The purpose of loyalty programs is to reward past behavior
T/F: An organization's CRM system contains two major components: operational CRM systems and analytical CRM systems.
True
______________ is a strategy in which the salesperson provides customers with the opportunity to purchase related products or services of greater value in place of, or along with, the consumer's initial product or service selection.
Upselling
Over time all organizations inevitably lose a certain percentage of customers, a process called Over time all organizations inevitably lose a certain percentage of customers, a process called _________.
customer churn
Customer Touch Points
the numerous and diverse interactions organizations have with their customers including traditional customer touch points such as telephone contact, direct mailings, and actual physical interactions with customers during their visits to a store and the additional touch points that occur through organizational CRM systems such as e-mail, Web sites, and communications via smartphones.
_____ examines customer data in detail for designing and executing targeted marketing campaigns.
Analytical CRM
T/F: Small companies do not need expensive customer relationship management software because they know their customers personally.
False
Which of the following is not a customer-touching CRM application?
Shopping cart
T/F: Sales force automation is a customer-facing application.
True
T/F: Some companies conduct live chat with customers using a computer with natural language processing software, rather than a real person.
True
Although CRM varies according to circumstances, all successful CRM policies share two basic elements:
1st: the company must identify the many types of customer touch points. 2nd: it needs to consolidate data about each customer.
Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the school's monitors that would display in the dining halls and student union. Which of the following should Haya focus on during her first month of operation?
A loyalty program
_____ is the practice of marketing additional related products to customers based on a previous purchase.
Cross-selling
___________- is the marketing of additional related products to customers based on a previous purchase.
Cross-selling
Outbound telesales
Customer and sales team collaborate in discussing products and services that can satisfy customers' needs and generate sales
_____ are applications and technologies with which customers interact and typically help themselves.
Customer-touching applications
T/F: Refer to Closing Case 2 - Organic and Beyond Corporation (OABC) Managers Its New B2C Channel: OABC's information system that supported distribution was already designed to support their new expanded distribution system.
False
T/F: Refer to Closing Case 2 - Organic and Beyond Corporation (OABC) Managers Its New B2C Channel: OABC's primary business is to sell organic produce directly to consumers (B2C)
False
T/F: Refer to Opening Case - Rating Online Customer Service: To collect customer service data, StellaService surveys real-life customers of businesses to collect data about their opinions.
False
T/F: The purpose of analytical CRM systems is to use multiple communication channels, such as the Web, telephone, and Twitter, to support the communication preferences of the customer.
False
T/F: Transactional CRM systems provide interactive communication with the customer throughout the organization.
False
__________ is the use of social media technology and services to enable organizations to engage their customers in a collaborative conversation in order to provide mutually beneficial value in a trusted and transparent manner.
Social CRM
Customer touch points include ___________________.
Telephone contact, email, web sites, and customer visits to a store.
T/F: Because customer service and support are essential to a successful business, organizations must place a great deal of emphasis on both their CRM strategy and their CRM systems.
True
T/F: Because open-source CRM systems are created by a large community of unpaid developers, there sometimes is no central authority responsible for overseeing the quality of the product.
True
T/F: Collaborative customer relationship management systems enable the customer to provide feedback on the product or service.
True
T/F: Collaborative customer relationship management systems enable the organization's functional areas to share information about the customer.
True
T/F: Customer relationship management systems provide the infrastructure to support an organization's CRM strategy.
True
T/F: Important technologies in analytical CRM systems include data warehouses, data mining, decision support, and other business intelligence technologies. After these systems have completed their various analyses, they supply information to the organization in the form of reports and digital dashboards.
True
T/F: In customer-facing applications, customers interact directly with a company representative.
True
T/F: In the past, customer data have been located all over the company, typically in the functional areas.
True
T/F: Like all software, however, open-source CRM systems have certain risks. The most serious risk involves quality control.
True
T/F: Mobile CRM systems are targeting customers through their laptops.
True
T/F: New technologies are extending the traditional CIC's functionality to include e-mail and Web interaction.
True
T/F: One of the most well-known customer interaction centers is the call center
True
T/F: Operational CRM systems support processes that directly interact with the customer.
True
T/F: Properly designed CRM systems provide a single, enterprise-wide view of each customer.
True
T/F: Refer to IT's About Business 12.2 - uShip Benefits from SugarCRM: uShip uses SugarCRM to in-process new customers and manage hundreds of different accounts through one interface.
True
T/F: Refer to Opening Case - Rating Online Customer Service: Only about fifty percent of the businesses that buy data from SellaServices receive their customer seal of approval.
True
T/F: The focus of modern organizations has shifted from conducting business transactions to managing customer relationships. In general, organizations recognize that customers are the core of a successful enterprise, and the success of the enterprise depends on effectively managing relationships with them.
True
Over time, the customer relationship with vendors has become more impersonal for all of the following reasons except:
customer relationship management systems were developed
In _______________________ an organization's sales, field service, and customer interaction center representatives interact directly with customers. These applications include customer service and support, sales force automation, marketing, and campaign management.
customer-facing applications
The two major components of operational CRM systems are:
customer-facing applications and customer-touching applications
Inbound teleservice
customers communicate directly with the CIC to initiate a sales order, inquire about products and services before placing an order, and obtain information about a transaction they have already made.
Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors. Sales are going well and she needs to decide how many ties to order of each color and sport. To help her with this decision, she turns to ______________
her analytical CRM.
_____________________, which is a comprehensive source of information regarding products and services.
product knowledge system
A snapshot of a consumer's buying habits that may lead to additional sales through cross-selling, upselling, and bundling.
purchasing profile
__________________, which is a mathematical technique for estimating future sales
sales forecasting system
_________________________, which lists potential customers or customers who have purchased related products; that is, products similar to those that the salesperson is trying to sell to the customer.
sales lead tracking system
On-Demand CRM Systems
systems hosted by an external vendor in the vendor's data center which spares the organization the costs associated with purchasing the system, maintenance, and employees need to know only how to access and utilize it. Also known as utility computing or soft ware-as-a-service (SaaS).
customer interaction center (CIC)
where organizational representatives use multiple channels such as the Web, telephone, fax, and face-to-face interactions to communicate with customers. The CIC manages several different types of customer interaction.
_____________ defined as the number of shares of the company's stock outstanding multiplied by the price per share of the stock.
market capitalization
Cross-selling is a sales strategy that ________________________.
markets products to customers based on previous purchases (e.g., Amazon recommends books that are similar to previous book purchases)
A _______________- is an interactive system that enables an organization to conduct communications related to sales, marketing, and customer service activities through a mobile medium for the purpose of building and maintaining relationships with its customers.
mobile CRM system
On-Premise CRM Systems
systems are purchased from a vendor and then installed them on site.
Collaborative CRM Systems
A CRM system where communications between the organization and its customers are integrated across all aspects of marketing, sales, and customer support processes.
Which of the following statements is NOT true? A: Customer relationship management is a way of thinking and acting in a customer-centric fashion. You got it wrong' B: Customer relationship management represents a major break with personal marketing. This is correct answer C: Customer relationship management helps companies acquire new customers and retain existing profitable customers. D: Customer relationship management is an organizational strategy that is customer-focused and customer-driven.
B. Customer relationship management represents a major break with personal marketing.
An example of a high-end system is
Boeing, which uses its CRM system to coordinate staff activities in a campaign to sell its new 787 aircraft to Delta Airlines.
___________ is a form of cross-selling in which a business sells a group of products or services together at a lower price than their combined individual prices.
Bundling
_______ is not a process or a technology per se; rather, it is a customer-centric way of thinking and acting.
CRM
Which of the following statements concerning customer relationship management is false?
CRM constitutes a specific use of technology
open-source CRM system
CRM software whose source code is available to developers and users
For organizations to pursue excellent relationships with their customers, they need to employ ________________ that provide the infrastructure needed to support those relationships.
CRM systems
Which of the following statements is false?
Data consolidation and a 360-degree view mean the same thing.
Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors. She has built up a fairly good clientele and is wondering what else she can do to sell and keep in touch with her customers. Her friend Nitesh offers to build her a mobile CRM app. She first needs to think about what a mobile CRM app could do for her. Which of the following is not an activity a mobile CRM would do for her business?
Do customer profitability analysis.
T/F: Customer relationship management is important to all organizations, but it is relevant only to marketing professionals because other professionals, such as accountants, do not ever come into contact with customers.
False
T/F: On-demand CRM systems are purchased from a software vendor by an organization and installed on the company's site so that the system is available whenever the organization needs it.
False
T/F: Over time, the customer relationship with vendors has become more personal.
False
T/F: The basic idea of CRM is to treat all customers in the same way.
False
_________________ are those that directly interact with customers; that is, sales, marketing, and service.
Front-office processes
Which of the follow statements concerning customer interaction centers (CIC) is false?
In inboard telesales, the customer calls the CIC.
_____ is a CRM system that is hosted by an external vendor in the vendor's data center.
On-demand CRM
_____________ support front-office business processes.
Operational CRM systems
Which of the following is the most important enabler of the 360-degree view of the customer across an organization?
The organization's data warehouse
T/F: Analytical CRM systems analyze customer data for a variety of purposes: -Designing and executing targeted marketing campaigns -Increasing customer acquisition, cross-selling, and upselling -Providing input into decisions relating to products and services (e.g., pricing and product development) -Providing financial forecasting and customer profitability analysis
True
T/F: As more and more people shop online, the importance of personalization in marketing and sales efforts is actually increasing.
True
T/F: CRM systems are designed to achieve customer intimacy.
True
T/F: Mobile CRM systems involve interacting with consumers directly through their own portable devices.
True
T/F: StellaService employees act as real-life customers at thousands of retailers.
True
T/F: The optimal result of the organization's CRM efforts is to maximize the number of high-value repeat customers while minimizing customer churn.
True
T/F: Today, customers are becoming increasingly powerful.
True
T/F: a minor increase in customer satisfaction can generate a major increase in a company's overall value.
True
T/F: the CRM approach is designed to achieve customer intimacy.
True
_____ is a sales strategy which the business person will provide customers the opportunity to purchase higher-value related products.
Up-selling
The complete data on a customer is called _____________
a 360-degree view
_____________ provide business intelligence by analyzing customer behavior and perceptions.
analytical CRM systems
_______________, that enable customers to model the product to meet their specific needs.
configurators
_____________________, which tracks all communications between the company and the customer, the purpose of each communication, and any necessary follow-up. This system eliminates duplicated contacts and redundancy, which in turn reduces the risk of irritating customers.
contact management system
Analytical customer relationship management systems ______________________.
create statistical models to forecast the acquisition, retention, and loss of customers
high-end CRM systems
designed for enterprises with few large customers
low-end CRM systems
designed for enterprises with many small customers