Question 1

Without understanding CRM's impact,a business cannot understand whether its CRM practices are adding to its success.How can organisations best understand their CRM's impact?

Accepted Answer

CRM metrics are the best choice for organizations to understand their CRM's impact. Metrics such as customer retention rates, customer lifetime value, and customer satisfaction scores can help businesses measure the effectiveness of their CRM practices and make informed decisions to improve them. Customer conversions, service requests, and order cycle times are important metrics, but they do not provide a comprehensive understanding of CRM's impact.

Question 2

How does partner relationship management (PRM) discover optimal sales channels?

Accepted Answer

Partner relationship management (PRM) focuses on selecting the right partners and identifying mutual customers to optimize sales channels.

Question 3

Which of the following statements is incorrect?

Accepted Answer

Sales force automation (SFA) is a system that streamlines and automates sales tasks, but it does not eliminate sales persons. In fact, SFA is designed to help salespeople be more effective and efficient in their jobs, ultimately driving more revenue for the organization.

Question 4

Employees are the backbone of an enterprise and the communication channel to customers,partners and suppliers.What are enterprises turning to,in order to retain key employees?

Accepted Answer

Enterprises are increasingly focusing on Employee Relationship Management (ERM) to retain key employees by fostering a positive work environment and addressing their needs and concerns.

Question 5

How do call-scripting systems assist customer service representatives?

Accepted Answer

Call-scripting systems assist customer service representatives by accessing organizational databases that track similar issues or questions and automatically generating the details for the CSR who can then relay them to the customer. This helps to save time and ensure that accurate information is provided to the customer. B, C, and D may also be possible benefits, but they are not as comprehensive or effective as option A.

Question 6

What type of system automates each phase of the sales process,helping individual sales representatives coordinate and organise all of their accounts?

Accepted Answer

A sales management system is specifically designed to automate each phase of the sales process and help individual sales representatives coordinate and organize their accounts. ERP systems are more focused on managing overall business processes, while intelligent sales systems and master sales systems are not widely recognized terms in the industry.

Question 7

Which application can track every form of customer communication and provide this information to all employees?

Accepted Answer

Customer Relationship Management (CRM) systems are designed to track every form of customer communication and provide this information to all employees. It helps in managing customer data, identifying potential leads, and improving customer relationships through personalized interactions. SCM (Supply Chain Management) and ERP (Enterprise Resource Planning) systems, on the other hand, focus on different aspects of business operations, such as managing supply chain processes and integrating various business functions.

Question 8

What provides web-based self-service tools that streamline and automate the human resource department?

Accepted Answer

The answer of What provides web-based self-service tools that streamline...

Question 9

What is up-selling?

Accepted Answer

Up-selling is the practice of encouraging customers to purchase a higher-end or upgraded version of the product they are already considering. This increases the value of the sale by persuading the customer to spend more money on the purchase they are already considering.

Answer: D 
 While up-selling often focuses on increasing the value of the sale, it can also lead to an increase in the frequency and quantity of sales. By providing excellent customer service and suggesting additional products or services that could benefit the customer, businesses can encourage customers to return more frequently and purchase more overall.

Question 10

What systems determine potential customers and competitors and define selling efforts,including budgets and schedules.

Accepted Answer

Opportunity management systems are designed to identify potential customers and competitors, and to help define selling efforts, including budgets and schedules. These systems can help businesses prioritize their sales efforts and streamline their processes for identifying and pursuing new business opportunities. Financial management systems, on the other hand, are concerned with managing financial transactions and budgets, while intelligence management systems focus on gathering and analyzing data on competitors, trends, and other market factors. Information management systems are more general in scope and are designed to manage and organize information within an organization, but may not specifically address sales or customer acquisition.

Question 11

Most companies recognise the importance of building strong relationships during the marketing and sales efforts,however many fail to recognise the importance of________________?

Accepted Answer

Continuing to build relationships after the sale is complete is crucial for maintaining customer loyalty and potentially generating future business. Many companies make the mistake of only focusing on making the initial sale and neglecting to nurture the relationship with the customer afterwards. This can lead to lost opportunities and a negative reputation in the long run.

Question 12

What type of system can take an incoming telephone number and display the caller's name along with notes detailing previous conversations?

Accepted Answer

A contact management system is designed to store and organize information about individuals or organizations, including their contact information and any notes related to previous interactions. It can integrate with phone systems to display the caller's name and any relevant notes when they call. A complaint management system, contact service system, and contact visualization system may also be able to display caller information, but they are not specifically designed for this purpose.

Question 13

Which of the following statements is correct?

Accepted Answer

Collective intelligence refers to the combined knowledge and abilities of all individuals involved in a group or organization, including employees, partners, and customers. It involves collaboration and the pooling of resources to achieve collective goals.

Answer: B
 Core competency refers to the specific strengths and abilities that a business has developed and performs better than its competitors in the same industry or market. A core competency strategy involves leveraging these strengths to gain a competitive advantage.

Answer: C
 A collaboration system typically includes various tools and technologies that enable individuals or groups to work together on projects or tasks. This may include document exchange and sharing, electronic whiteboards, discussion forums, and email communication.

Answer: None of the above
 Option D is incorrect, as it is essentially the same as option A. The other options are accurate statements about different concepts related to organizational strategy and collaboration.

Question 14

What are the three primary operational CRM technologies a sales department can implement to increase customer satisfaction?

Accepted Answer

All three options listed (sales management CRM systems, contact management CRM systems, and opportunity management CRM systems) are primary operational CRM technologies that sales departments can implement to increase customer satisfaction. Therefore, the best choice is D, "All of the answers are correct."

Question 15

CRM moves far beyond technology by identifying customer needs and designing specific marketing campaigns tailored to each.How does this capability enable businesses to treat their customers?

Accepted Answer

By designing specific marketing campaigns tailored to each customer, businesses can treat their customers as individuals, rather than a generic mass. This allows for a more personalized and meaningful relationship between the business and the customer, which can result in increased customer loyalty and satisfaction.

Question 16

Web-based tools that make it easy for users to add,remove and change online content are:

Accepted Answer

Wikis are web-based tools that allow users to collaborate and modify online content easily. They provide a simple interface for adding, removing or changing content, without requiring any technical knowledge. Instant messaging services and web conferencing are real-time communication tools, while knowledge management systems are designed to capture and share knowledge within an organization. None of these options provide the same level of ease and flexibility for modifying online content as wikis.

Question 17

Website personalisation is based on data collected by the CRM systems.When and why does website personalisation occur?

Accepted Answer

Website personalisation occurs when a website can 'know' enough about a person's likes and dislikes to fashion offers that are more likely to appeal to that person. This is based on data collected by the CRM systems, which can help tailor the website experience to individual users.

Question 18

________________ is an organisation's key strength,a business function that it does better than any of its competitors.

Accepted Answer

Core competency refers to a unique strength or advantage that a business has over its competitors. It is a key element of a company's competitive strategy and helps differentiate it from others in the market. By focusing on its core competencies, a company can achieve better performance, higher profits, and customer satisfaction.

Question 19

What supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers?

Accepted Answer

Analytical CRM supports back-office operations and strategic analysis by providing tools and systems that analyze customer data and provide insights for business decisions. Operational CRM deals directly with customers, while Collaborative CRM focuses on improving communication and collaboration between different departments and customers. Therefore, option B is the best choice.

Question 20

What is cross-selling?

Accepted Answer

Cross-selling is the practice of selling additional products or services to a customer. This can include complementary products or upgrades to existing products or services. It helps to increase the value of each transaction and can lead to increased customer loyalty and satisfaction.

Quiz 10: Enterprise Information Systems: CRM and Collaboration Systems