Question 1

A customer database is the key to developing strong customer relationships and retaining current customers.

Accepted Answer

A customer database allows businesses to store and analyze customer information, enabling personalized communication, targeted marketing, and improved customer service, all of which are crucial for developing strong relationships and retaining customers.

Question 2

At the top of the customer hierarchy are the company's clients, or most valuable customers that generate the most revenue.

Accepted Answer

The answer of At the top of the customer hierarchy...

Question 3

Customer loyalty programs are programs sponsored by an organization or firm to encourage customer repeat purchases through program enrollment processes and the distribution of awards and/or benefits.

Accepted Answer

Customer loyalty programs are designed by organizations to reward customers for their repeated business, encouraging them to continue purchasing from the organization by offering them benefits, discounts, or rewards through a structured program that often requires enrollment.

Question 4

Three components of transaction data that help analyze each customer through some variation include: recency, frequency, and efficiency.

Accepted Answer

The correct components are recency, frequency, and monetary value, not efficiency. These are used to analyze customer behavior in the RFM model.

Question 5

In addition to being able to delete duplicate names and addresses, the mergepurge process has the ability to effectively remove names of individuals who have expressed a desire not to receive solicitation.

Accepted Answer

The mergepurge process not only eliminates duplicate names and addresses from mailing lists but also can be configured to remove individuals who have opted out or requested not to receive solicitations, enhancing privacy and compliance with regulations.

Question 6

The term "nixie" refers to mail that has been returned by the United States Postal Service because it is undeliverable as addressed.

Accepted Answer

"Nixie" is a term used by the United States Postal Service to describe mail that cannot be delivered as addressed and therefore must be returned, forwarded, or otherwise handled.

Question 7

Database analytics is where the direct marketer analyzes customer information within the customer database to draw inferences about an individual customer's needs.

Accepted Answer

Database analytics involves analyzing customer information stored in a database to understand and predict customer behavior, preferences, and needs, which is essential for direct marketing strategies.

Question 8

Database enhancement is the adding and overlaying of information to customer records to better describe and understand the customer.

Accepted Answer

Database enhancement involves adding more detailed information to existing customer records to improve the understanding of customer behavior, preferences, and demographics, thereby enabling more targeted marketing and customer service strategies.

Question 9

The key to successful microtargeting is targeting the right mass audience.

Accepted Answer

Microtargeting involves targeting very specific, small groups of people or individuals, rather than a large mass audience, with tailored messages or advertisements.

Question 10

Often marketers use PRM to support a cause.

Accepted Answer

Marketers use PRM (Public Relations Marketing) to support a cause by creating awareness, shaping public opinion, and generating goodwill towards the cause.

Question 11

All customers are of equal value to a company or organization.

Accepted Answer

Different customers can have varying levels of value to a company based on factors such as purchase frequency, purchase volume, profitability, loyalty, and the potential for future growth.

Quiz 2: Database Marketing and Customer Relationship Marketing