Question 1

What is the key word in EIS?

Accepted Answer

A

Question 2

Keeping track of customer communications is important if the business wants to continue to build and manage that relationship.

Accepted Answer

Keeping track of customer communications helps businesses understand their customers' needs, preferences, and concerns. It also allows for personalized interactions and can help foster long-term relationships.

Question 3

A marketing campaign's success is directly proportional to which organisational ability?

Accepted Answer

Gathering and analysing the right information is essential for understanding the target market, developing effective marketing messages, and measuring the success of a marketing campaign.

Question 4

What does the reporting phase of CRM do?

Accepted Answer

The reporting phase of CRM helps organizations identify their customers across other applications. This helps in understanding customer needs, preferences and behaviours which can be used to create targeted marketing campaigns and improve customer service. The other options (A and B) do not pertain to the reporting phase of CRM.

Question 5

What does the predicting phase of CRM perform?

Accepted Answer

The predicting phase of CRM helps organizations make predictions regarding customer behavior, such as their likelihood to make a purchase, their potential lifetime value, and their preferred communication channel.

Question 6

Businesses can find their most valuable customers by using the RFM formula.Which of the following make up RFM?

Accepted Answer

The RFM formula consists of tracking how recently a customer purchased items (recency), how frequently they make purchases (frequency), and the monetary value of each purchase (monetary value). Therefore, all of the options A, B, and C make up RFM.

Question 7

Businesses can find their most valuable customers by using the RFM formula-recency,frequency and monetary value.

Accepted Answer

The RFM formula is a proven method for identifying a company's most valuable customers based on their recency of purchase, frequency of purchase, and monetary value spent on purchases. By analyzing these three factors, businesses can better target their marketing efforts to retain these valuable customers and increase their profitability.

Question 8

What are two common CRM sales metrics tracked by organisations?

Accepted Answer

The two common CRM sales metrics tracked by organizations are the number of retained customers and new customers. This helps in understanding customer loyalty and the effectiveness of sales efforts in acquiring new customers. Metrics A and B are not specific to sales, and therefore, not relevant to CRM sales metrics. Option D is incorrect as there are metrics that organizations track for CRM sales.

Question 9

Information sources for list generators include which of the following?

Accepted Answer

All of the options are correct and are commonly used as sources for generating lists. Website visits can provide valuable information about user behavior and preferences, online and offline surveys can directly gather information from individuals, and website questionnaires can help obtain information from users as they interact with a website. Combining these sources can help generate comprehensive and targeted lists.

Question 10

Customer relationship management (CRM) is a means of managing all aspects of a customer's relationship with an organisation to endeavour to increase customer loyalty and retention,and the organisation's profitability.

Accepted Answer

The statement accurately describes the purpose and goals of CRM.

Question 11

A primary component of managing a customer relationship is knowing about the reasons a customer is communicating.Which aspects of communications are most pertinent?

Accepted Answer

Knowing the "when" and "why" of a customer's communication is most pertinent in managing a customer relationship. Understanding the timing and motivation behind a customer's communication can help businesses better address their needs and concerns, and ultimately improve the overall customer experience. While factors like "who" and "what" may also be important, they are often secondary to the timing and purpose of the communication. "Where" and "how" may not be as relevant in this context.

Question 12

What is customer relationship management?

Accepted Answer

Customer relationship management (CRM) involves managing all interactions and relationships with customers to improve customer satisfaction, loyalty, and retention. It involves using customer data to personalize and improve the customer experience, as well as identifying sales opportunities and increasing profitability. It is not just a standard set of activities or workflow design, but a strategic approach to managing customer relationships.

Question 13

What tasks do campaign management systems perform to guide users through marketing campaigns?

Accepted Answer

Campaign management systems perform a variety of tasks to guide users through marketing campaigns, including planning the campaign strategy, scheduling the campaign activities, and segmenting the target audience. Therefore, all the given answers are correct.

Question 14

Supplier relationship management (SRM) focuses on keeping suppliers satisfied by evaluating and categorising suppliers for different projects.What does supplier relationship management achieve?

Accepted Answer

The answer of Supplier relationship management (SRM) focuses on keeping...

Question 15

CRM moves far beyond technology by identifying customer needs and designing specific marketing campaigns tailored to each.

Accepted Answer

CRM stands for Customer Relationship Management and involves understanding and meeting customer needs through various strategies, including tailored marketing campaigns. While technology is often involved in implementing CRM, it goes beyond mere technology to encompass a customer-focused approach to business.

Question 16

What type of CRM focuses on enabling customers to work interactively with a business to improve the service the business provides them?

Accepted Answer

The type of CRM that focuses on enabling customers to work interactively with a business to improve the service the business provides them is called collaborative CRM. Collaborative CRM is aimed at enhancing customer experience and satisfaction by creating a two-way relationship between the business and the customer. Customers are provided with various channels to communicate with the business such as social media, email, chatbots, etc., and the business uses the information collected from these interactions to improve their service.

Question 17

Identifying its most valuable customers allows a business to ensure these customers receive the highest levels of customer service and are offered the first opportunity to purchase new products.

Accepted Answer

Identifying and prioritizing valuable customers is a common strategy in customer relationship management (CRM) that helps businesses offer personalized services and better understand their target audience. By focusing on the needs and preferences of these top customers, companies can increase customer retention rates, drive sales, and strengthen their brand reputation in the long run.

Question 18

There are three phases in the evolution of CRM: reporting,analysing and consolidating.

Accepted Answer

The three phases in the evolution of CRM are typically considered to be operational, analytical, and collaborative.

Question 19

CRM is generally perceived as something that primarily concerns sales,marketing and service personal.In reality,whose business is customer satisfaction?

Accepted Answer

Customer satisfaction should be the responsibility of the entire organization, not just specific departments. All employees have a role in ensuring customers have a positive experience with the company, from the initial interaction with sales and marketing to ongoing service and support. Therefore, the best choice is B, everyone's.

Question 20

What are the three primary types of CRM systems?

Accepted Answer

All three types of CRM systems are equally primary and important in customer relationship management. Operational CRM deals with automation of various business processes, collaborative CRM focuses on efficient communication and collaboration among various departments, and analytic CRM deals with analysis of customer data to gain insights and improve strategies. Therefore, all options are correct.

Quiz 10: Enterprise Information Systems: CRM and Collaboration Systems