Deck 11: Building a Customer-Centric Organization Customer Relationship Management

Question 1

What are the three phases in the evolution of CRM?

A) Recency, analyzing, predicting
B) Reporting, analyzing, predicting
C) Recency, analytical, processes
D) Reporting, analytical, predicting

Answer 1

B
Explanation: Reporting, analyzing, and predicting are the three phases in the evolution of CRM.

Question 2

What is the formula that an organization can use to find its most valuable customers?

A) RFM-reporting, features, monetary value.
B) RFM-reporting, frequency, market share.
C) RFM-recency, frequency, monetary value.
D) RFM-recency, features, market share.

Answer 2

C
Explanation: RFM-recency, frequency, monetary value-is the formula that an organization can use to find its most valuable customers.

Question 3

What is the top CRM business driver?

A) Inventory control
B) Increase revenues
C) Competitive advantage
D) Automation/productivity/efficiency

Answer 3

D
Explanation: Automation/productivity/efficiency is the top CRM business driver, as displayed in the CRM business drivers figure.

Question 4

Which of the following is not one of the questions asked during the analyzing phase of CRM?

A) What customers are at risk of leaving?
B) Why was customer revenue so high?
C) Why did sales not meet forecasts?
D) Who are our customers?

Question 5

Which of the following is not one of the CRM business drivers?

A) Inventory control
B) Increase revenues
C) Accountability
D) Automation/productivity/efficiency

Question 6

What supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers?

A) Analytical CRM
B) Operational CRM
C) Personalization
D) All of these

Question 7

What is the term that identifies how frequently a customer purchases items?

A) Recency
B) Frequency
C) Monetary value
D) Reporting

Question 8

Which of the following statements is incorrect?

A) CRM reporting technologies help organizations identify their customers across other applications.
B) CRM analysis technologies help organizations segment their customers into categories, such as best and worst customers.
C) CRM predicting technologies help organizations make predictions regarding customer behavior, such as which customers are at risk of leaving.
D) CRM predicting technologies help organizations identify their customers across other applications.

Question 9

What is the term that defines how recently a customer purchased items?

A) Recency
B) Frequency
C) Monetary value
D) Reporting

Question 10

What can analytical CRM modeling tools discover?

A) Identify opportunities for expanding customer relationships.
B) Identify opportunities for cross-selling.
C) Identify opportunities for up-selling.
D) All of these.

Question 11

Which of the following is not one of the questions asked during the reporting phase of CRM?

A) What is the total revenue by customer?
B) How many units did we manufacture?
C) Where did we sell the most products?
D) Who are our customers?

Question 12

Who did Business 2.0 rank as number one in the top 50 people who matter most in business?

A) Bill Gates
B) You-the business analyst
C) Michael Dell
D) You-the customer

Question 13

Which of the following represents operational CRM?

A) Supports traditional transactional processing.
B) Supports day-to-day front-office operations.
C) Supports operations that deal directly with the customers.
D) All of these.

Question 14

What occurs when a website can know enough about a person's likes and dislikes that it can fashion offers that are more likely to appeal to that person?

A) Operational CRM
B) Analytical CRM
C) Personalization
D) All of these

Question 15

Which of the following is the first CRM implementation strategy?

A) Define information needs and flows.
B) Build an integrated view of the customer.
C) Clearly communicate the CRM strategy.
D) Implement in iterations.

Question 16

What is another term that represents CRM reporting technologies that help organizations identify their customers across other applications?

A) Customer identification
B) Customer segmentation
C) Customer predicting
D) All of these

Question 17

What made-to-order views can analytical CRM tools slice-and-dice customer information into?

A) Customer value
B) Customer spending
C) Customer segmentation
D) All of these

Question 18

CRM allows an organization to accomplish all of the following except:

A) Provide better customer service.
B) Make call centers more efficient.
C) Complicate marketing and sales processes.
D) Help sales staff close deals faster.

Question 19

What is another term that represents CRM analysis technologies that help organizations segment their customers into categories such as best and worst customers?

A) Customer identification
B) Customer segmentation
C) Customer predicting
D) All of these

Question 20

What is the term that defines how much a customer spends on each purchase?

A) Recency
B) Frequency
C) Monetary value
D) Reporting

Question 21

Back-office operations deal directly with the customer.

Question 22

The business world is shifting from customer focus to product focus.

Question 23

___________ CRM supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers.

Question 24

Define the relationship between decision making and analytical CRM.

Question 25

___________ CRM supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers.

Question 26

The primary difference between operational CRM and analytical CRM is the direct interaction between the organization and its suppliers.

Question 27

Which of the following is not a CRM industry best practice?

A) Define information needs and flows.
B) Build an integrated view of the customer.
C) Scalability for organizational growth.
D) Implement using the big-bang approach.

Question 28

A customer strategy starts with understanding who the company's __________ are and how they help the company meet strategic goals.

Question 29

Which of the following is not one of the questions asked during the predicting phase of CRM?

A) What is the total revenue by customer?
B) What products will the customer buy?
C) Who are the best candidates for a mailing?
D) What is the lifetime profitability of a customer?

Question 30

___________ office operations deal directly with the customer.

Question 31

CRM is a technology based on the premise that those organizations that understand the needs of individual customers are best positioned to achieve sustainable competitive advantage in the future.

Question 32

Compare operational CRM and analytical CRM.

Question 33

List and describe the primary forces driving the explosive growth of CRM.

Question 34

___________ occurs when a website can know enough about a person's likes and dislikes that it can fashion offers that are more likely to appeal to that person.

Question 35

List and describe several benefits an organization can receive from CRM.

Question 36

The Internet can completely replace the phone and face-to-face communications with customers.

Question 37

List and describe the industry best practices for implementing a successful CRM system.