Chapter 2- Customer Relationship Management

Question 1

What type of management provides the structure for how relationships with customers will be developed and maintianed

Answer 1

Customer Relationship Management

Question 2

Why is customer relationship management important?

Answer 2

Customer Retention
Competitive Intensity
Cost efficiency
Customer selectivity

Question 3

This term refers to the rate at which customers stay with a business in a given period of time

Answer 3

Customer Retention

Question 4

What is defined as the extent to which companies within a specific industry exert pressure on one another

Answer 4

Competitive Intensity

Question 5

What is the biggest benefit of customer relationship management

Answer 5

It can increase customer loyalty because it provides customized products and services as appropriate

Question 6

Customer relationship management has a significant impact on the bottom line through what 4 things

Answer 6

Increased sales
improved plant productivity
reduced customer service costs
improved asset utilization

Question 7

T/F- CRM provides the critical link with the customers in the supply chain

Answer 7

True

Question 8

Why would customers want to reduce the number of “market choices?

Answer 8

B/c too many market choices require a high investment of money, time, and effort
- want to reduce the risk due to uncertainty of outcomes

Question 9

What relationships are managed by customer teams which negotiate mutually beneficial product / service agreements with large, strategically significant customers.

Answer 9

Customer Relationships

Question 10

T/F- For each supplier in the supply chain, the ultimate measure of success for the customer relationship management process is the change in profitability of an individual customer or segment of customers.

Answer 10

True

Question 11

Customer relationship management must be viewed as strategic, cross-functional and process-based in order to avoid the potential problems associated with a narrow technology oriented definition

Answer 11

Just know

Question 12

The CRM process has two parts. What are they?

Answer 12

Strategic and Operational

Question 13

Which CRM process establishes and manages the process

Answer 13

The Strategic Process

Question 14

Which CRM process is where the implementation takes place or day to day activities?

Answer 14

Operational Process

Question 15

Which process is led by a management team that is comprised of executives from several functions: marketing, sales, finance, production, purchasing, logistics and, research and development.

Answer 15

Strategic Process

Question 16

T/F- The strategic process team is responsible for making decisions about how relationships with customers will be developed and maintained.

Answer 16

True

Question 17

T/F- At the operational level, there will be a customer team for each key account and for each segment of other customers.

Answer 17

True

Question 18

What are the five steps of the strategic-sub process?

Answer 18

1) review corporate and marketing strategy
2) Identify criteria for segmenting customers
3)Provide guidelines for the degree of differentiation in the product and service agreements
4) Develop Framework of Metrics
5) Develop Guidelines for sharing process improvement benefits with customers

Question 19

What are the seven steps of the operational-sub process?

Answer 19

1) Segment Customers
2) Prepare the Account/Segment Management Team
3) Internally review the accounts
4) Identify opportunities with the accounts
5) Develop the product and service agreements
6) Implement the Product and Service Agreements
7) Measure Performance and Generate Profitability Reports