Deck 4: Organization and CRM

Question 1

The organization itself can be a key inhibitor to the success of a CRM initiative.

Answer 1

True

Question 2

A McKinsey research study found that the organization is a critical and often overlooked factor in driving CRM

Answer 2

True

Question 3

Customer centricity implies that all customer information is as complete, up-to-date, and accurate as possible.

Answer 3

True

Question 4

Organizational and operational barriers between customer contact points and backend marketing analysts can inhibit CRM efforts

Question 5

The larger the organization, the better chance that a CRM initiative will be successful.

Question 6

A functionally structured company is optimal for CRM.

Question 7

The CRM challenge with Brand Alignment Structures is the creation of a holistic view of the customer.

Question 8

The more decentralized an organization's interactions, the greater the challenges may be with practicing CRM.

Question 9

Account teams usually rely on CRM enabling software such as Seibel or
salesforce.com to support their CRM efforts.

Question 10

A matrix structure organization is conducive to CRM.

Question 11

CRM efforts are most successful when all technology functions within the organization are integrated.

Question 12

Outsourcing the call center function can enhance the CRM effort.

Question 13

The best approach to developing the optimal CRM process is to work backward from the customer's perspective.

Question 14

A company's value chain has little effect on the company's CRM strategy.

Question 15

Knowledge Management systems can be a key CRM enabler.

Question 16

According to a survey conducted by on-line resource center CRM Forum, when asked what went wrong with their CRM projects, ____ pinned the failure of their CRM programs on the lack of adequate change management.

A)0.33
B)0.5
C)0.99
D)0.05
E)0.87

Question 17

A McKinsey research study in which leading CRM executives were interviewed, over 60 percent placed ______ as one of their top two challenges.

A)Technology
B)The Organization
C)The Competition
D)Financial resources
E)Operations

Question 18

Customer centricity implies that all customer information is____ as possible.

A)Complete and accurate
B)Measurable, accurate and up-to-date
C)Complete, up-to-date and accurate
D)Up-to-date
E)Complete and measurable

Question 19

Hitachi found that in Japan many CRM projects failed due to

A)Inadequate technology solutions
B)Organizational and operational barriers between customer contact points and marketers
C)Lack of financial investments
D)Poorly trained employees
E)Operational barriers between CRM enablers and CRM users

Question 20

It is important to ________ throughout the organization before formulating a specific strategy.

A)Implement CRM technology
B)Conduct CRM guidelines
C)Change the business model
D)Communicate the potential adoption of a CRM methodology
E)Implement the CRM methodology

Question 21

As part of its CRM initiative, the company must balance

A)Business profitability and strategic objectives, while building and maintaining customer loyalty
B)Financial investments
C)Technology resources
D)Human resources
E)Internal strategies and value chain member strategies

Question 22

When attempting to introduce CRM to SBUs who happen to be in direct competition with each other for the same customers, it is best for the Corporation to

A)Implement CRM with the SBU that has the most profit potential
B)Phase the CRM initiative into one SBU first and the second later
C)Combine the two SBUs into one SBU
D)Induce cooperation between the two SBUs
E)Do nothing from a corporate standpoint and let the SBUs determine how to implement the CRM solutions

Question 23

Which of the following statements is the truest?

A)The lowest paid employees have the lowest impact on a CRM effort.
B)Employees' ability to form and sustain relationships is important to CRM success.
C)Workshops are a good way to get employee buy-in to a CRM initiative.
D)CRM benefits to the employee should be communicated to the employee.
E)All of the above are equal in importance

Question 24

Approaches to get employees at all levels of the organization to buy-in to the CRM process include all of the following except

A)Implementation of an internal web site for testing employee knowledge of CRM.
B)Ensuring that the employee reward structure is aligned with the CRM strategy.
C)Train employees on customer selection methods.
D)Identify skill gaps and find solutions to reduce or eliminate the gaps.
E)Get employees involved early in the CRM planning process.

Question 25

Oak-Lawn Marketing in Japan found that the following strategy helped them build and sustain profitable relationships with their customers:

A)Gave each employee the products they sell for their own use at home
B)Created a lucrative incentive program
C)Created teams and gave teams with the highest overall customer satisfaction rating a financial reward
D)Provided CRM training to their employees on company time
E)Have found no practical CRM strategy methods due to their customer cultural environment

Question 26

A high-end retailer found that the following strategy worked in sustaining customer loyalty:

A)Increased sales commissions for its sales employees
B)Reduced prices for its most loyal customers
C)Provided its sales people with a customer identification system at POS
D)Increased the number of sales people on the retail floor
E)Provided team selling to their loyal customers

Question 27

Culture characteristics that may lead to a suboptimal CRM initiative include all of the following except

A)Executive leadership with little customer involvement
B)Internal competitive work methodology in place
C)Top-down decision making and information flow
D)Production-oriented organization
E)Flexibility in taking risks

Question 28

Culture characteristics that may lead to an optimal CRM initiative include all of the following except

A)Marketing-oriented environment
B)Reward systems aligned with CRM strategy
C)Leadership that recognizes technology as an enabler and not a solution
D)Reward structure that favors adherence to hard standards
E)Executives who get involved at the customer level

Question 29

Soft standards can enable CRM because they

A)Specify exactly what to do with the customer and leave no room for mistakes
B)Are easy to implement
C)Are the same for every customer so it makes it easier to serve the customer
D)Can be followed by each employee with little training
E)Provide a baseline for standards and room to adjust based on customer needs

Question 30

Advantages related to CRM that large organizations have over small organizations include all of the following except

A)Large employee base
B)Large amounts of customer information
C)Technology economies of scale
D)Greater financial resources
E)Large product margins

Question 31

Advantages related to CRM that mid- to small-size organizations have over larger organizations include all of the following except

A)Smaller size means fewer areas to control
B)Technology economies of scale
C)Lesser number of employees lessens training period
D)Less chance of disparate systems
E)Deeper levels of CRM expertise

Question 32

One of the activities undertaken by hospitals to reduce their costs is

A)Renegotiating physicians' salaries
B)Outsourcing support services
C)Opening sick child care centers
D)Reducing ICU beds

Question 33

From the following list of possible organizational structures, the one most conducive to enabling CRM is

A)Geographical
B)Matrix
C)Functional
D)Brand Alignment
E)Industry Category

Question 34

From the following list of possible organizational structures, the one most conducive to inhibiting CRM is

A)Matrix
B)Account Management
C)Functional
D)Industry Category
E)Geographical

Question 35

From the following list of possible organizational structures, the one most conducive to inhibiting CRM in a B2C environment is

A)Matrix
B)Account Management
C)Geographical
D)Industry Category
E)By customer

Question 36

From the following list of possible organizational structures, the one most conducive to enabling CRM in a B2B environment is

A)Brand alignment
B)Industry category
C)Functional
D)Account Management
E)Geographic

Question 37

Many organization technology environments are not compatible enough to enable CRM effectively because

A)Most of the computer hardware and software being used is from the same supplier.
B)All software is at the same version level.
C)There is low high technology skill level turnover.
D)There is a variety of software and hardware platforms from the same or different suppliers.
E)Technology solutions rarely change over time.

Question 38

Separating the e-commerce business from the brick-and-mortar business can inhibit CRM. But organizations separated the two for all of the following reasons except

A)Identifying ROI on the e-commerce business to ensure it was profitable
B)Perception that the two business were different
C)Minimize their risk on e-commerce ventures
D)The consumer would most likely favor e-commerce
E)Different skill sets were required for each

Question 39

A decision to not offer customer support 24/7 by a national computer retailer is a good decision because

A)It will save money by reducing staffing personnel.
B)It does not make sense to staff when there a few calls.
C)They had a shortage of knowledgeable personnel.
D)None of their competitors offer 24/7.
E)None of the above are good decisions if they have a substantial negative impact on the customer.

Question 40

Knowledge management should not be a priority for adoption as a CRM enabler if:

A)The organization is large with disparate information
B)The organization is small with simple customer solutions
C)There is high employee turnover
D)The organization is decentralized
E)If the product or service solution is complex