Question 1

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

Accepted Answer

The organization's culture, structure, and processes can create barriers to implementing and adopting a CRM system, and thus inhibit its success. Factors like inadequate training, lack of support from senior leaders, and resistance to change can also contribute to this inhibition.

Question 2

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

Accepted Answer

The statement accurately reflects the findings of the McKinsey research study.

Question 3

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

Accepted Answer

Customer centricity prioritizes the customer's needs and preferences, and having complete and accurate customer information is essential to achieving this.

Question 4

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

Accepted Answer

When there are barriers between customer contact points (e.g. sales and customer service) and backend marketing analysts (e.g. data analysts and marketing strategists), it can be difficult for customer insights and data to be effectively shared and utilized in CRM efforts. This can result in missed opportunities for personalized marketing and customer retention.

Question 5

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

Accepted Answer

The size of the organization does not necessarily guarantee the success of a CRM initiative. Success depends on a variety of factors such as proper planning, implementation, and ongoing management. Small organizations can also have successful CRM initiatives if they approach it strategically and effectively.

Question 6

A functionally structured company is optimal for CRM.

Accepted Answer

A functionally structured company might face challenges in CRM as it can lead to silos, making it difficult to share customer information across departments. A more integrated or customer-centric structure is often better for CRM.

Question 7

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

Accepted Answer

Brand Alignment Structures can often lead to silos within an organization, making it difficult to create a unified view of the customer across departments. This poses a challenge for CRM efforts, as a holistic view of the customer is essential for effective and personalized customer engagement.

Question 8

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

Accepted Answer

Decentralization can create difficulties in collecting and analyzing customer data, as well as ensuring consistent customer service across various departments or locations.

Question 9

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

Accepted Answer

This statement is true. Account teams often use CRM enabling software such as Seibel or Salesforce to manage their customer relationship management efforts.

Question 10

A matrix structure organization is conducive to CRM.

Accepted Answer

A matrix structure organization allows for cross-functional collaboration, which is essential for a successful CRM strategy. It allows individuals from different departments to work together to meet the needs of the customer, enhance customer experiences, and increase customer satisfaction.

Question 11

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

Accepted Answer

Integration allows for a seamless flow of information between different systems, enabling better data collection and analysis which is crucial for effective CRM efforts.

Question 12

Outsourcing the call center function can enhance the CRM effort.

Accepted Answer

The answer of Outsourcing the call center function can enhance...

Question 13

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

Accepted Answer

Working backward from the customer's perspective ensures that the CRM process is designed to meet their needs and provide the best possible experience. This approach helps businesses understand their customers' behaviors, preferences, and pain points, which can inform the development of effective CRM strategies.

Question 14

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

Accepted Answer

A company's value chain can have a significant impact on its CRM strategy. For example, understanding the activities involved in manufacturing and delivering a product can help a company identify areas where it can improve customer service and support. This, in turn, can improve customer satisfaction and retention, leading to increased sales and revenue. Additionally, a company's value chain can help it identify which customer-facing activities are most critical for building customer relationships, which can inform its CRM strategy.

Question 15

Knowledge Management systems can be a key CRM enabler.

Accepted Answer

Knowledge Management systems can help store and retrieve customer information and insights, which can be used to improve customer relationships and enhance the overall CRM strategy.

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

Accepted Answer

The answer of According to a survey conducted by on-line...

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

Accepted Answer

According to the McKinsey research study of CRM executives, over 60 percent placed "The Organization" as one of their top two challenges. While technology, competition, financial resources, and operations may also be challenges, they were not identified as frequently as organizational challenges.

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

Accepted Answer

The answer of Customer centricity implies that all customer information...

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

Accepted Answer

Hitachi found that organizational and operational barriers between customer contact points and marketers were the main reason for CRM project failure in Japan. This suggests that there were issues with communication and collaboration between different departments or teams within the company.

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

Accepted Answer

Communicating the potential adoption of a CRM methodology is important to ensure buy-in and understanding from all levels of the organization before determining a specific strategy. This will allow for effective implementation and success of the CRM system. The other options listed are not directly related to gathering input and understanding from employees before creating a CRM strategy.

Quiz 4: Organization and CRM