Question 1

_____ examines customer data for designing and executing targeted marketing campaigns.&#10;A) Transactional CRM&#10;B) Analytical CRM&#10;C) Operational CRM&#10;D) Collaborative CRM

Accepted Answer

Analytical CRM is designed to analyze customer data and behavior in order to improve marketing and sales effectiveness. It helps companies understand customer behavior and preferences, identify trends and patterns, and develop targeted marketing campaigns. The other options (Transactional CRM, Operational CRM, and Collaborative CRM) focus on different aspects of the customer relationship, such as managing transactions, improving customer service, and facilitating communication and collaboration.

Question 2

A customer physically enters a store and interacts with an employee. This is an example of a _____.&#10;A) touch point&#10;B) point of presence&#10;C) market entry point&#10;D) channel point

Accepted Answer

A customer physically entering a store and interacting with an employee is an example of a touch point, which refers to any point of interaction between a customer and a company. Choice B, point of presence, is a term commonly used to refer to a company's physical presence within a particular market or geographic area. Choice C, market entry point, is a term used to refer to the point at which a company enters a new market or market segment. Choice D, channel point, is not a commonly used term in marketing and does not accurately describe the scenario provided.

Question 3

The optimal result of an organization's CRM efforts is to maximize the number of high-value repeat customers while minimizing customer churn.

Accepted Answer

The statement correctly identifies the main goal of CRM efforts, which is to cultivate long-term relationships with high-value customers in order to increase revenue and minimize customer turnover.

Question 4

Which of the following is NOT a benefit of open-source CRM?&#10;A) It is easy to customize.&#10;B) It is favorably priced.&#10;C) It has more functionality than in-house CRM systems.&#10;D) It provides extensive support information.

Accepted Answer

This statement is not necessarily true for all open-source CRM systems. Some in-house CRM systems may have more functionality than certain open-source options.

Question 5

_____ is a CRM system that is hosted by an external vendor in the vendor's data center.&#10;A) Mobile CRM&#10;B) Analytical CRM&#10;C) Operational CRM&#10;D) On-demand CRM

Accepted Answer

On-demand CRM, also known as Software as a Service (SaaS) CRM, is a model where the CRM system is hosted by an external vendor in their data center and can be accessed by the user through the internet. This model offers flexibility, scalability, and cost-effectiveness as the user does not have to invest in hardware or software infrastructure.

Question 6

_____ includes those areas where customers directly interact with the company.&#10;A) Transactional CRM&#10;B) Analytical CRM&#10;C) Customer-facing CRM&#10;D) Customer-touching CRM

Accepted Answer

Customer-facing CRM refers to those areas where customers have direct interaction with the company, such as customer service centers, sales channels, and social media platforms. Transactional CRM focuses on automating and improving the efficiency of customer transactions, while analytical CRM focuses on analyzing customer data to gain insights and improve the overall customer experience. Customer-touching CRM is not a commonly used term in the industry.

Question 7

Customer relationship management is important for all organizations.

Accepted Answer

Customer relationship management (CRM) helps organizations improve their customer satisfaction and loyalty, increase sales revenue, and reduce customer churn. This applies to all types of organizations, from small businesses to large corporations, as maintaining good relationships with customers is essential for long-term success.

Question 8

Upselling is the practice of marketing additional related products to customers based on previous purchases.

Accepted Answer

Upselling is the practice of encouraging customers to purchase a comparable higher-end product than the one in question, not necessarily additional related products. That would be cross-selling.

Question 9

Which of the following statements about customer relationship management is true?&#10;A) It has become even more personal due to industrialization and mass production.&#10;B) It helps companies acquire new customers and to retain and expand their relationships with profitable existing customers.&#10;C) It stays consistent throughout various circumstances which makes it easier to standardize the process.&#10;D) It helps companies spend less time with their customers so that they can gather and analyze data in greater volume.

Accepted Answer

Customer relationship management (CRM) helps companies to acquire new customers and retain and expand relationships with profitable existing customers. It involves building and maintaining long-term relationships with customers, and maximizing their satisfaction, loyalty, and profitability. It is not related to industrialization or mass production and is not meant to spend less time with customers for data analysis. While certain processes and technologies may be standardized, CRM is ultimately about providing personalized and tailored experiences for each customer.

Question 10

Today, many companies are using persuasive technologies to create new habits.

Accepted Answer

Many companies use persuasive technologies such as notifications, gamification, and personalized content to encourage users to develop new habits or strengthen existing ones.

Question 11

_____ is the component of an operational CRM system that automatically records all the aspects in a sales transaction process.&#10;A) Inbound telesales&#10;B) Outbound telesales&#10;C) Sales team efforts&#10;D) Sales force automation

Accepted Answer

The answer of _____ is the component of an operational...

Question 12

Which of the following types of CRM applications does a check-in kiosk at an airport represent?&#10;A) Inbound teleservice&#10;B) Customer touching&#10;C) Outbound telesales&#10;D) Customer-facing

Accepted Answer

The answer of Which of the following types of CRM...

Question 13

Which of the following statements about the use of Sugar by the Redglaze Group is NOT true?&#10;A) It enables managers to share documents with subcontractors through a Sugar portal.&#10;B) It resulted in managers frequently receiving information that had no relevance to their projects.&#10;C) It includes accounting and human resources functions.&#10;D) It resulted in gains in staff empowerment and improved company image.

Accepted Answer

The answer of Which of the following statements about the...

Question 14

All successful CRM policies have two basic elements: identifying customer touch points and consolidating data about each customer.

Accepted Answer

The answer of All successful CRM policies have two basic...

Question 15

Pharmaceutical companies have customer-management needs that are more complex than those of other industries.

Accepted Answer

The answer of Pharmaceutical companies have customer-management needs that are...

Question 16

The biggest risk of open-source CRM is quality control.

Accepted Answer

The answer of The biggest risk of open-source CRM is...

Question 17

The Web and point-of-sale terminals are examples of customer-touching CRM applications.

Accepted Answer

The answer of The Web and point-of-sale terminals are examples...

Question 18

Bundling is a form of upselling, where a business sells a group of small inexpensive products together on discount with a bigger, more expensive product.

Accepted Answer

The answer of Bundling is a form of upselling, where...

Question 19

Low-end customer relationship management systems are designed for small enterprises that cannot afford more complex systems.

Accepted Answer

The answer of Low-end customer relationship management systems are designed...

Deck 12: Customer Relationship Management