Chapter 1 - D Flashcards
Importance of the customer.
How can a company measure customer expectations?
Through customer surveys, and/or an analysis of complaints received.
How much, on average, does it cost for a company to win a new customer compared to retaining an existing one?
Five times more.
Marketing of insurance products should?
Be carefully tailored so they appeal to customers and are easily understood.
The insurance sales method should ensure that?
All relevant facts to the Insurance contract are made clear.
Insurers are required by the Financial Conduct Authority (FCA) to pay what to a customers interests?
Due regard and treat them fairly.
Who should be considered as customer ‘champions’ and role models?
- Managers.
- Supervisors.
- Team leaders.
Why would a company analyse complaints?
- To highlight faults in processes.
- To provide training where needed.
- To quickly and accurately avoid the problems continuing.
What does CRM stand for?
Customer Relationship Management.
What is Customer Relationship Management?
Information about individual customers to pre-empt future buying needs and provide data on previous buying habits and interactions. It helps build stronger relationships between the business and the client.
Why is Customer Relationship Management important?
Increases purchasing from customers and increases the time period a customer will stay with them. The longer a customer stays the more they buy and the more opportunity a company has of recouping the cost of acquiring them. It is less expensive than wining new customers.
CRM is an approach which adopts a clear focus in the way business is done with customers. This is because it entails: (List 5)
- Offering a relationship rather than a process.
- A better understanding of buying patterns and expands business relationships.
- Moving to a proactive rather than reactive environment.
- Communication in many different formats with customers (face to face, direct mail etc).
- Enhancment of additional revenue generation efforts.
What can be the most challenging issues which arise from CRM?
Different computer systems and bringing together the information from all of them to create one single view of a customer. Once we have this information, what further information will we need, how up to date is the information we already have, if we get additional information how can it be stored? Building an effective computer system to be able to support all of this is an important challenge.
What is outcome 1 of the FCA’s fair treatment of customers initiative?
Consumers can be confident they are dealing with firms where the fair treatment of customers is central to the corporate culture.
What is outcome 2 of the FCA’s fair treatment of customers initiative?
Products and services marketed and sold in the retail market are designed to meet the needs of identified consumer groups and are targeted accordingly.
What is outcome 3 of the FCA’s fair treatment of customers initiative?
Consumers are provided with clear information and are kept appropriately informed before, during and after the point of sale.
