Question 1

To contact an airline, customers are increasingly using _____, as opposed to the old way of phoning the company.

Accepted Answer

Consumers are increasingly using social media tools such as Twitter to contact an airline as opposed to the old way of phoning the company.

Question 2

WestJet is an excellent example of a company that has embraced CRM from the top management down.Employees of WestJet have a heightened sense of customer service responsibility uncharacteristic of many other employees.How do they accomplish this?

Accepted Answer

What percentage of employees can state the company's vision or mission statement? This is one of the questions to assess how close the company is to developing a CRM culture.

Question 3

Charles, who had been waiting in a check-in line at Grasp Airways, tweeted his dissatisfaction when he realized that the line was not moving quickly.At the same time, airline employees were scanning the online traffic, and came across Charles's complaint.By the time Charles made it to the desk, his compliant was directly dealt with.Which of the following tools did Grasp Airways use to deal with Charles's issue?

Accepted Answer

The airline used Twitter, a social media application, to deal with Charles's issue.Airlines are increasingly using Twitter and other tools to deal with customer service issues.

Question 4

Which of the following is true about cultural changes that CRM entails?

Accepted Answer

A CRM culture does not come in a box of software.Before installing the tools of CRM, companies need to make sure that they are on their way to establishing a CRM culture.The benefits of implementing CRM software are greater if the company adopts a CRM culture.

Question 5

According to the findings of a TD Canada Trust loyalty poll, 49 percent of customers ranked _____ as their number one priority.

Accepted Answer

According to the findings of the TD Canada Trust loyalty poll, customers want to be treated well.When asked which form of appreciation they are most interested in, 49 percent ranked "just good customer service" as number one.

Question 6

When Philip returns for a second stay at The Banff Spring Hotel, the guest executive asks him for his preferences without bothering to refer to the database.Which of the following likely caused the executive to do so?

Accepted Answer

CRM databases allow companies to get closer to their customers to establish a mutually beneficial relationship.A company's failure with CRM is often the result of approaching CRM as a software project rather than an overall company strategy.CRM requires a top-down long-run commitment and attitude change by management.If the hotel employees are feeling unappreciated and have low morale, as a result of not being respected by their supervisors, they may not refer to the database when that guest returns, thus leaving the guest feeling unappreciated.

Question 7

Employees at WestJet are recognized for behaving in a way that has the customer's interests at heart.The degree to which the employees feel rewarded will help assess the state of WestJet's _____.

Accepted Answer

To what degree do employees feel that they are rewarded (recognition, promotion, compensation) for behaving in a way that has the customer's interests at heart? This question helps to assess how close the company is to developing a CRM culture.

Question 8

Every employee at WestJet takes ownership in what they do, and they have a heightened sense of customer service responsibility.The management at WestJet is _____.

Accepted Answer

Management at WestJet is "walking the talk." This means, for example, that it's one thing for management to say they appreciate their employees; it's another thing to actually show their appreciation by their actions.

Question 9

One of the temptations for a company using social media is to encourage consumers to say positive things about their brand on a social media platform._____ can suffer as a result.

Accepted Answer

One of the temptations for a company is to encourage consumers to say positive things about their brand on a social media platform.Credibility can suffer as a result.

Question 10

Which of the following is true about customer retention?

Accepted Answer

The increased customer retention is due to several factors that occur after a relationship has been established with a customer.For example, long-term customers tend to be less inclined to switch, and also tend to be less price-sensitive.

Question 11

For flyers who have lost luggage or missed a flight, the immediacy of feedback based on _____ could render toll-free numbers and website feedback forms obsolete in the near future.

Accepted Answer

Consumers are increasingly using social media tools such as Twitter to contact an airline as opposed to the old way of phoning the company.

Question 12

Swifttrade.com, an online trading site, makes a special effort to ask customers when and how they would like to be contacted and stores this information in its database.This practice allows Swifttrade.com to channel its brand _____.

Accepted Answer

Listening to customers is as important as-if not more important than-talking to them.Some business-to-business (B2B) companies are now making a special effort to ask customers when and how they would like to be contacted by the company.This practice shows respect for loyal customers' time and allows companies to direct the brand communication in a way that is appropriate.

Question 13

Instead of blogging and tweeting about its new raspberry-flavoured chocolate, Lollies Sweets Inc.encouraged customers to post positive comments about the brand by giving the first 100 buyers an additional 280 grams of the chocolate.There is a possibility that most buyers gave a biased opinion because of the freebie provided.As a result, the _____ of Lollies Sweets Inc.could have suffered.

Accepted Answer

One of the temptations for a company is to encourage consumers to say positive things about their brand on a social media platform.Credibility can suffer as a result.

Question 14

_____ programs are those that are specifically designed for customer retention.

Accepted Answer

Loyalty programs are those that are specifically designed for customer retention.All customers should be rewarded, but not all customers are the same.

Question 15

Which of the following is true about long-term customer relationships?

Accepted Answer

Long-term customers tend to be less inclined to switch.They also tend to be less price-sensitive.The longer a customer stays with a company, the more the cost of acquisition can be spread out.

Question 16

According to Pareto's Rule:

Accepted Answer

Companies that surprise and delight their high-profit customers with reward programs are more likely to keep these customers in the long run.

Question 17

Pastels.com, an online site selling self-branded art and craft items, creates a wow experience for every customer who visits the site.It creates a difference by providing free shipping for all products and places only those products that are in stock.A toll-free phone number, active 24/7, is placed on every page of the site.Pastels.com is an example of a company that aims to provide the best _____.

Accepted Answer

Through understanding the online shopping experience from the customer's point of view, Pastels.com was able to improve the overall experience in a way that had an impact.This came about through a detailed understanding of each touch point with targeted customers.

Question 18

Which of the following is true about loyalty programs?

Accepted Answer

In most product categories, a small number of heavy users account for a large percentage of a brand's sales and profits.Heavy users are customers who buy an above-average amount of a given brand.

Question 19

Regular customers at Krotler Inc.are also offered autographed memorabilia and are sometimes invited for celebrity meet-and-greets.This practice of Krotler Inc.goes beyond its usual practice of giving points to the customer that can be used to redeem for merchandise.These special offers are an example of Krotler Inc.'s _____ programs.

Accepted Answer

These are examples of loyalty programs.Loyalty programs are those that are specifically designed for customer retention.All customers should be rewarded, but not all customers are the same.

Question 20

A small number of customers account for a large percentage of a brand's sales and profits.This is referred to as _____.

Accepted Answer

In most product categories, a small number of heavy users account for a large percentage of a brand's sales and profits.Heavy users are customers who buy an above-average amount of a given brand.According to Pareto's Rule, 80 percent of a brand's sales come from 20 percent of its customers.

Quiz 14: Customer Relationship Management