Module 4: Customer Relationship Management

Question 1

CRM objectives

Answer 1

1. Customer Acquisition
2. Customer Retention
3. Customer profitability

Question 2

Customer acquisition

Answer 2

Process of gaining new customers by persuading them to purchase a company’s products and/or services

Question 3

Customer retention

Answer 3

The ability of a company or product to retain its customers over some specified period

Question 4

Customer profitability

Answer 4

CRM reduces the cost of business and increases profitability. As a rule, winning a new customer’s business takes significantly more time, effort, and marketing resources than renewing or expanding business with an existing customer

Question 5

Primary Functions of CRM

Answer 5

1. Operational
2. Analytical
3. Collaborative

Question 6

CRM Process Cycle

Answer 6

Question 7

touchpoints

Answer 7

Any way a consumer can interact with a business, whether it be person-to-person, through a website, an app, or any form of communication

Question 8

re-engineering processes

Answer 8

Recreating a core business process with the goal of improving product output, quality, or reducing costs

Question 9

data mining

Answer 9

The practice of examining large databases in order to generate new information

Question 10

integrating data

Answer 10

Technical and business processes used to combine data from disparate sources into meaningful and valuable information

Question 11

data warehouse

Answer 11

A large store of data accumulated from a wide range of sources within a company and used to guide management decisions

Question 12

data warehousing

Answer 12

Electronic storage of a large amount of information by a business or organization

Question 13

dashboards

Answer 13

The graphical representation of the data generated by a report (or multiple reports) at a certain point in time

Question 14

Data integrity

Answer 14

The accuracy and validity of data

Question 15

viruses

Answer 15

A piece of code that is capable of copying itself and typically has a detrimental effect, such as corrupting the system or destroying data

Question 16

worms

Answer 16

A type of malicious software program whose primary function is to infect other computers while remaining active on infected systems

Question 17

data breaches

Answer 17

The intentional or unintentional release of secure or private/confidential information to an untrusted environment

Question 18

cybercrime

Answer 18

Criminal activities carried out by means of computers or the internet

Question 19

trojan horses

Answer 19

A type of malicious software designed to spy on the victim’s computer to access files or to extract sensitive data

Question 20

Benefits of CRM

Answer 20

Question 21

Improved efficiency

Answer 21

A CRM, apart from organizing information, records, and reports, can automate, streamline, and monitor workflows and activities quickly. CRM systems are also intended to integrate with a broad range of company and office platforms in order to provide superior flexibility. All of these are intended to guarantee that the staff and teams involved function as efficiently as possible and generate optimal outcomes.

Question 22

Customer focus

Answer 22

A CRM is one of the established means of increasing favorable customer experiences and communication, as it is capable of tracking the connection of an organization with customers on all touchpoints—business website, email, mobile, live chat, tickets, and physical or online store. CRM makes an organization customer-focused and responsive, leading to increased customer retention and prospect conversion. The organization is geared toward a relationship-based enterprise.

Question 23

Data accessibility

Answer 23

CRM highlights information as the most valuable strategic asset. Integrated CRM systems have instruments for collecting, analyzing, and making sense of customers’ and prospects’ information, so an organization can gather ideas to enhance its services and offerings. The organization can effectively target customer segments, track market effectiveness, expedite the marketing cycle, and improve the use of customer channels. Understanding what information is all about, processing it to filter helpful patterns and indicators, and making it easily accessible to the organization will serve as a guide in offering outstanding services for customers.

Question 24

Enhanced accountability

Answer 24

With improved workflows and communication between teams and employees, roles can be defined and employees can understand their responsibilities. A CRM can readily recognize weak areas in the customer relationship and can identify the employees accountable. This allows the company to take corrective action and react accordingly.

Question 25

Common Customer Touchpoints

Answer 25

Question 26

Key performance indicators (KPIs)

Answer 26

A type of performance measurement. KPIs evaluate the success of an organization or of a particular activity in which it engages

Question 27

mass marketing

Answer 27

A market strategy in which a firm tries to appeal to the whole market by broadcasting a message that will reach the largest number of people possible

Question 28

mass production

Answer 28

The production of large amounts of standardized products, including and especially on assembly lines

Question 29

target market

Answer 29

A particular group of consumers at which a product or service is aimed

Question 30

market segmentation

Answer 30

The process of defining and subdividing a large homogeneous market into clearly identifiable segments having similar needs, wants, or demand characteristics

Question 31

Geographic

Answer 31

Country, state, and zip code

Question 32

Demographic

Answer 32

Age, gender, race, ethnicity, education, and income

Question 33

Cultural

Answer 33

Country of origin, language, religion, dietary preferences, family structure, and social roles

Question 34

Psychographic

Answer 34

Values, opinions, attitudes, and lifestyle

Question 35

Behavioral

Answer 35

How they use products, what benefits they want, how they shop or pay, and their loyalty status

Question 36

Targeted Marketing

Answer 36

Question 37

One-to-one marketing

Answer 37

Creating a unique marketing mix for every customer

Question 38

database marketing

Answer 38

A form of direct marketing using databases of customers or potential customers to generate personalized communications in order to promote a product or service for marketing purposes