Chapter 6

Question 1

A customer driven organization aims to achieve what?

Answer 1

Customer identification, differentiation, and interaction

Question 2

What is a business and technology discipline for managing customer relationships to optimize revenue, profitability, customer satisfaction, and customer retention?

Answer 2

Customer relationship management (CRM)

Question 3

What is a method of interaction with the customer such as phone, email, etc?

Answer 3

A touch point

Question 4

What is a set of integrated applications to address all aspects of the customer relationship, including sales, marketing, and service?

Answer 4

A CRM system

Question 5

What are the three phases in the evolution of CRM?

Answer 5

Reporting, analysis, and prediction

Question 6

What supports transactional processing for day-to-day front-office operations?

Answer 6

Operational CRM

Question 7

What supports back-office operations and strategic analysis?

Answer 7

Analytical CRM

Question 8

What is the process of tools that shift through data, looking for trends, patterns and correlations?

Answer 8

Data mining

Question 9

What compiles customer info from a variety of sources (websites, surveys) and organizes it (household income, age) for different marketing campaigns?

Answer 9

A list generator

Question 10

A system that automatically tracks all of the steps in the sales process is a…

Answer 10

Sales force automation (SFA)

Question 11

What automates each phase of the sales process, helping sales representatives coordinate and organize their accounts?

Answer 11

Sales management CRM system

Question 12

What maintains customer contact info and identifies prospective customers for future sales?

Answer 12

Contact management CRM system

Question 13

What targets sales opportunities by finding new customers or companies for future sales?

Answer 13

Opportunity management CRM system

Question 14

What is the place where customer service reps answer customer inquiries and respond to problems through touch points?

Answer 14

Contact centre (call centre)

Question 15

What allows customers to use the web to find answers to their questions or solutions to the problems?

Answer 15

Web-based self-service system

Question 16

What type of CRM can help find new customers similar to your best customers and reactivate inactive customers?

Answer 16

Analytical CRM

Question 17

What allows companies to measure the effectiveness of marketing campaigns?

Answer 17

Marketing analytics

Question 18

What provides key performance indicators and customizable dashboards?

Answer 18

Sales analytics

Question 19

What are the CRM best practices?

Answer 19

• clearly communicate the CRM strategy
• define information needs and flows
• build an integrated view of the customer
• implement in manageable pieces
• ensure the system can support future growth
• protect customer privacy

Question 20

What are the 8 building blocks of CRM best practices?

Answer 20

1) Creating a CRM vision that provides a picture of what the customer-centric organization should look like
2) defining and weaving a CRM strategy that aligns with broad marketing and sales strategies
3) understanding and engaging the customer
4) ensuring organizational collaboration between internal groups and external partners
5) improving customer processes
6) achieving data integrity across the company
7) leveraging info systems to implement CRM
8) defining, collecting, and analyzing CRM

Question 21

What are the two limitations of CRM?

Answer 21

1) CRM is firm centric (only relies on interactions of the customer with the firm)
2) limited predictive ability (some events are unforeseeable)