Question 1

All of the following are key questions for a company transitioning to a customer-strategy enterprise except:
A) Who will be responsible for keeping and growing each customer?
B) Who will be responsible for building short-term and long-term customer value?
C) What authority will the chief executive have to change how the enterprise treats customers individually?
D) By what criteria will success be measured, reported, and used for compensation?

Accepted Answer

The chief executive's authority to change how the enterprise treats customers individually is not a key question for transitioning to a customer-strategy enterprise, as it is generally assumed that the chief executive has the authority to make broad strategic changes. The other options directly relate to the operational and strategic shifts needed for focusing on customer strategy.

Question 2

"Customer service" has traditionally been considered to be a company's efforts to answer inquiries and handle complaints. But Price and Jaffe offer ideas about how to fix service more systemically, by preventing the need for "service." These include all of the following except:
A) Measure the efficiency of the call center by counting the number of calls that are handled per hour.
B) Create engaging self-service.
C) Make it easy to contact the company.
D) Make customer service part of the responsibility of billing, IT, credit, finance, and manufacturing.

Accepted Answer

Measuring the efficiency of the call center by counting the number of calls handled per hour focuses on quantity over quality and does not necessarily contribute to preventing the need for service, which contradicts the systemic approach to fixing service mentioned by Price and Jaffe.

Question 3

All of the following are ways a customer-strategy enterprise might meet the goal of maximizing the customer base except:
A) retaining profitable customers and growing them
B) acquiring as many new customers as possible
C) eliminating unprofitable customers
D) customizing products, prices, services, and/or communications for each customer

Accepted Answer

Acquiring as many new customers as possible without considering profitability or fit with the business strategy can lead to inefficiencies and may not contribute to the goal of maximizing the customer base in a sustainable or profitable manner.

Question 4

Which of the following statements is true about using satisfaction as a proxy for measuring loyalty?
A) Loyal customers are likely to be satisfied, and satisfied customers are likely to be loyal.
B) Loyal customers are likely to be satisfied, but not all satisfied customers will be loyal.
C) Not all loyal customers are satisfied, but satisfied customers are likely to be loyal.
D) Not all loyal customers will be satisfied, and not all satisfied customers will be loyal.

Accepted Answer

Loyal customers are generally satisfied because their continued patronage implies that their needs are being met. However, satisfaction does not necessarily equate to loyalty, as customers might be satisfied with a product or service but still choose to switch to alternatives for reasons like price, convenience, or curiosity.

Question 5

A customer-strategy organization's first investment should be in:
A) establishing a customer-centric vision
B) employee training and hiring
C) information technology
D) organizational reordering

Accepted Answer

Establishing a customer-centric vision is foundational for a customer-strategy organization, as it guides all subsequent decisions and investments, including employee training, IT, and organizational structure.

Question 6

"Relationship governance" refers to which of the following :
A) understanding how to manage relationships with channel partners
B) smart omnichannel marketing that ties together the brand message across all traditional and digital media
C) determining who will be in charge at the enterprise of building the value of each customer
D) measuring how much profit a customer makes for a company in the current quarter

Accepted Answer

The answer of "Relationship governance" refers to which of the...

Question 7

What is the biggest obstacle for most companies making the transition to becoming a customer-strategy enterprise?
A) transforming employee culture
B) establishing new and consistent criteria and metrics for success in a customer-centric environment
C) appointing capabilities managers
D) functional roles and their leadership

Accepted Answer

The answer of What is the biggest obstacle for most...

Question 8

Customer relationship managers will be directly responsible for:
A) customer portfolios
B) brand campaigns
C) capabilities managers
D) product managers

Accepted Answer

Customer relationship managers are directly responsible for managing customer portfolios, which involves overseeing the relationships with clients and customers to ensure satisfaction and loyalty. Choices B, C, and D involve roles typically handled by other specialized departments or positions within a company.

Question 9

In customer-strategy companies, capabilities managers are most akin to:
A) product VPs
B) product managers
C) customer managers
D) chief operating officers

Accepted Answer

Capabilities managers in customer-strategy companies are most similar to product managers because both roles focus on understanding and delivering the specific needs and wants of their target audience, albeit through different lenses. Product managers focus on the product's development and features, while capabilities managers focus on building and aligning the company's capabilities to meet customer needs.

Question 10

The purpose of "customer journey mapping" is to
A) document a customer's existing journey from awareness through use
B) determine the geographic route taken by a customer to and from a store
C) visualize the touchpoints and interaction points with a customer
D) determine the route followed online by a customer through various websites
E) a and c
F) a and d

Accepted Answer

Customer journey mapping is a tool used to document a customer's journey from awareness through use (A) and to visualize the touchpoints and interaction points with a customer (C), helping businesses understand and improve the customer experience.

Question 11

More and more in the past 20 years, companies have asked "What is it like to be our customer?" and "What should it be like?" Closing the gap between these two is how we think of customer experience management. How does this differ from "user experience management"? According to Allen Pennington, what are the tools available to the customer experience manager to increase customer value, and what should an executive do to start a customer experience push?

Accepted Answer

The answer of More and more in the past 20...

Question 12

List and describe the stages in leadership for a customer-strategy organization, as presented by Marijo Puleo.

Accepted Answer

The answer of List and describe the stages in leadership...

Question 13

Choose an organization and draw its organizational chart. How would that chart have to change in order to facilitate customer management and to make sure people are evaluated, measured, and compensated for building the value of the customer base? Consider these questions:
a. If a customer's value is measured across more than one division, is one person placed in charge of that customer relationship?
b. Should the enterprise establish a key account-selling system?
c. Should the enterprise underwrite a more comprehensive information system, standardizing customer data across each division?
d. Should the sales force be better automated? Who should set the strategy for how a sales rep interacts with a particular customer?
e. Is it possible for the various Web sites and call centers operated by the company to work together better?
f. Should the company package more services with the products it sells, and if so, how should those services be delivered?

Accepted Answer

The answer of Choose an organization and draw its organizational...

Question 14

For the same organization, consider the current culture. Can you describe it? Would that have to change for the organization to manage the relationship with and value of one customer at a time? If so, how?

Accepted Answer

The answer of For the same organization, consider the current...

Question 15

At the same organization, assume the company rank-orders customers by value and places the most valuable customers behind a picket fence for one-to-one treatment. What happens to customers and to portfolio managers behind that picket fence?

Accepted Answer

The answer of At the same organization, assume the company...

Quiz 13: Organizing and Managing the Profitable Customer-Strategy Enterprise, Part 1

All of the following are key questions for a company transitioning to a customer-strategy enterprise except:

"Customer service" has traditionally been considered to be a company's efforts to answer inquiries and handle complaints. But Price and Jaffe offer ideas about how to fix service more systemically, by preventing the need for "service." These include all of the following except:

All of the following are ways a customer-strategy enterprise might meet the goal of maximizing the customer base except:

Which of the following statements is true about using satisfaction as a proxy for measuring loyalty?

A customer-strategy organization's first investment should be in:

"Relationship governance" refers to which of the following :

What is the biggest obstacle for most companies making the transition to becoming a customer-strategy enterprise?

Customer relationship managers will be directly responsible for:

In customer-strategy companies, capabilities managers are most akin to:

The purpose of "customer journey mapping" is to

List and describe the stages in leadership for a customer-strategy organization, as presented by Marijo Puleo.

For the same organization, consider the current culture. Can you describe it? Would that have to change for the organization to manage the relationship with and value of one customer at a time? If so, how?

At the same organization, assume the company rank-orders customers by value and places the most valuable customers behind a picket fence for one-to-one treatment. What happens to customers and to portfolio managers behind that picket fence?