Which of the following is an accurate statement about customer relationship management software?

Track customization decisions by geographical area and use it to advise customers.
Designing boats to allow for a considerable degree of customization can keep costs down and the company profitable. Tracking customization decisions by geographical area can allow salespersons to advise customers on what choices are truly distinctive in their area. The other choices may not be as profitable.

A boat manufacturer whose customers want unique boats could do which of the following to increase customer satisfaction in this area while staying profitable selling competitively priced midsize luxury watercraft? A. Move to a make-to-order business model and have customers participate in design. B. Follow a make-to-stock business model and market that the organization increases its product variety every year. C. Allow customers to view boat progress and make changes once the demand time fence has been set. D. Track customization decisions by geographical area and use it to advise customers.

I, III, and IV only
Customer involvement in developing a product or service, as well as a sense of partnership and mutual investment, are key components of customer ownership.

In the development stage of customer relationship management (CRM), customer ownership has which of the following characteristics? I. A sense of partnership and mutual investment II. Uncertainty due to incomplete CRM strategy III. Involving key customers in crafting the product or service IV. Increased likelihood of early sales A. I, II, and III only B. II, III, and IV only C. I, III, and IV only D. I, II, III, and IV

Cyclical
The CRM business cycle is cyclical and involves setting CRM goals for a target customer, acquiring the customer, and fulfilling business terms for the customer, with the cycle starting again by setting new goals for the customer.

A customer relationship management (CRM) program is which of the following? A. Linear B. An event C. Sequential D. Cyclical

demographic segmentation is not based on data about actual customer buying behaviors.
Customer segmentation predates CRM, but in the past it relied heavily on demographic segmentation, which does not use actual customer buying behavior as CRM segmentation methods do. Customer segmentation can increase both revenue and profitability for retail and B2B customers.

Which of the following statements about customer segmentation is true? A. Customer segmentation is a concept new to customer relationship management (CRM). B. Demographic segmentation is not based on data about actual customer buying behaviors. C. Customer segmentation may help increase revenue but is not a tool for increasing profitability. D. Customer segmentation does not apply well to business-to-business (B2B) customers.

Contact the individual and attempt to listen or respond to the complaint.
Organizations can actively search for and respond to negative comments on the internet or on social networking sites such as Twitter and Facebook. According to a report by RightNow and Harris Interactive (discussed on www.marketingcharts.com), retailers contacted 68 percent of U.S. consumers who posted a negative review or complaint of their 2010 holiday shopping experience, and 67 percent of those contacted ended up taking an action that the retailer considered positive for the brand.

A consumer is dissatisfied with an organization’s product and posts a poor review of it on a social networking site. Which of the following should the organization do if it locates this comment? A. Contact the individual and offer a full refund if the customer made a purchase. B. There is nothing the organization can do that will improve the customer’s opinion. C. Send positive reviews of the organization’s product to the same community. D. Contact the individual and attempt to listen or respond to the complaint.

have forged a win-win relationship with the business in question.
Lifetime customers have a win-win relationship with the businesses they frequent. The customers gain greater satisfaction, while the business enjoys decreased marketing costs and increased revenue and profit potential. Lifetime customers are not common in markets competing on price rather than added value.

Lifetime customers A. are increasingly more expensive for a business to maintain as they increase demands. B. have forged a win-win relationship with the business in question. C. are common in commodity markets driven by price rather than value. D. can increase revenue but have a neutral effect on profit.

Tracking applications for evolving sales opportunities
SFA tools assist sales representatives by providing opportunity management or pipeline management applications to turn leads into sales. Service cyber agents are an automated form of answering customer queries, and universal queue is a way of automating inbound customer contact.

Which of the following is an example of a sales force automation (SFA) tool? A. Promotional program analytics B. Service cyber agents C. Tracking applications for evolving sales opportunities D. Universal queue

Interfacing technology
Interfacing technology is characterized by various systems feeding into each other. Disconnected technology involves using a variety of noninterfacing databases, internally integrated technology involves one main system storing all data, and multi-enterprise integrated technology involves multiple business lines sharing stored data internally.

Which of the following levels of technology integration is described as various systems that feed into each other, creating some capacity for integration of the data? A. Interfacing technology B. Internally integrated technology C. Disconnected technology D. Multi-enterprise integrated technology

measuring customer satisfaction.
Measurement of customer satisfaction is a key element of customer relationship management (CRM). B2B companies may measure the customer-driven effectiveness of their account managers by inviting the business customers' managers to participate in their performance evaluations.

A company invites key business customers to participate in the performance evaluations of its account managers. This is an example of A. collaborative management practices. B. extrinsic data information gathering. C. supply chain integration. D. measuring customer satisfaction.

A company with a customer base with diverse needs and interests
CRM focuses on learning more about one's customers and using this knowledge to enhance product, increase customer satisfaction, and improve revenue and profit. The company with the diverse customer base can potentially benefit greatly from being able to gather and use more information about its customers.

For which of the following companies would customer relationship management (CRM) probably be a priority? A. A company with one large customer that specifies product/service features B. A company that performs purchasing for a large manufacturer from several strategic suppliers C. A company that provides raw materials for an extended supply chain in which value is added at later points in the chain D. A company with a customer base with diverse needs and interests

Campaign management
Campaign management automates the campaign process through various tools such as customer intelligence and data extraction, campaign definition, detailed campaign planning and program launch, scheduling of activities, continuous performance measurement, and response management.

Which of the following would best help marketing professionals plan marketing programs, including program launch, scheduling of activities, continuous performance measurement, and response management? A. Order/provisioning system B. Opportunity management C. Campaign management D. Account management

cross-selling.
Cross-selling is a customer relationship management tactic made possible by the accumulation of data about a customer's buying habits. Customers are offered related products in addition to their current purchase.

You are purchasing an item online and receive the following automated message: "Other customers like you have also ordered X. Would you like to learn more about this product now? If so, click here." This is an example of A. a vulnerable customer program. B. a win-back program. C. up-selling. D. cross-selling.

reserve some fee-based service representative help for their more profitable segments.
When services are either offered for free (but still have an associated cost) or are in finite supply (such as a limited amount of service representative help), the organization may need to offer them only to their more profitable customers to ensure that the product-service package remains profitable and serves to retain profitable, long-term customers.

If an organization with limited staff has a customer relationship management (CRM) system that allows customers to customize a product-service package, the organization should A. reserve some fee-based service representative help for their more profitable segments. B. ensure that future segmentation analysis of unique packages does not result in segments of just one person. C. reserve some fee-based software downloads for their more profitable segments. D. provide equal access to all free service offerings to each customer segment. Submit

Sales productivity
Sales productivity can be increased by using resources specific to customer channel preferences and purchasing patterns.

Which of the following benefits of a customer data warehouse (CDW) can result from the strategic allocation of human and technology resources according to customer channel preferences and purchasing patterns? A. Sales productivity B. Strategic marketing C. Channel management D. One-to-one marketing

Data about customers, products, and the marketplace from internal and external resources
A CDW stores data about customers, products, and market trends, consolidating it in a manner that can facilitate future analysis to spot trends and relationships. A CDW is linked to a CRM transactional database but is not use for transactional processing.

Which of the following best describes a customer data warehouse (CDW)? A. Purchased data on specific customer segments and other external market research only B. Database for transactional processing of orders, billing, and customer care issues C. Current customer profiles created by salesperson notes and stored in a database D. Data about customers, products, and the marketplace from internal and external resources

Sales force automation
Sales force automation features include sales force management, channel partner management, lead tracking, and pipeline management.

Which of the following aspects of a customer relationship management technology system would be used for channel partner management and pipeline management? A. Marketing automation B. Business intelligence C. Sales force automation D. Account management

Campaigns for customer types such as prospects or loyal customers
Organizational structure is an issue for CRM strategy because of the different types of customers that each require different types of sales and marketing campaigns: prospective customers, vulnerable customers, win-back customers, and loyal customers. CRM teams can specialize in each type of campaign or perform job rotation to learn the most effective approaches to succeeding with each type. Cross-selling and up-selling are both part of loyal customer campaigns; television and radio are both part of media-based advertising campaigns; and segment preference for direct mail or by e-mail is part of direct marketing campaigns.

Which of the following types of CRM campaigns are different enough that they typically require separate planning and cross-training of marketing and sales professionals? A. Campaigns for television versus radio advertising B. Campaigns for up-selling versus cross-selling C. Campaigns for customer types such as prospects or loyal customers D. Campaigns for customer segments such as those preferring contact by direct mail or by e-mail

identifying customer need.
In a customer-focused world, the starting point for a product is often customer need.

In a customer-focused organization, the starting point for new product development is A. evaluating current customer product complaints. B. identifying a new market niche. C. identifying a price point most acceptable to lifetime customers. D. identifying customer need.

who is about to discontinue service or stop purchasing the product.
The most accurate answer is that a vulnerable customer is one who is about to stop being a customer. This may be due to factors described in some of the incorrect choices. A vulnerable customer may perceive little value in the relationship, may have developed little loyalty, and may be willing to try a competitor. A customer with an obsolete product who does not receive customer care may soon become vulnerable.

A vulnerable customer is one A. who is about to discontinue service or stop purchasing the product. B. who is segmented into a low-value group and offered few incentives. C. to whom the competition has been selling intensively. D. who owns one of the firm’s products that is becoming obsolete.

Segmentation by demographics
Demographic segmentation groups customers by group characteristics such as age, income, marital status, or family size.

In which type of customer segmentation are customers grouped by income? A. Segmentation by channel B. Segmentation by value C. Segmentation by need D. Segmentation by demographics Submit

Expert opinion guided by purchased customer data
Because the organization is new and has an innovative product, it likely has no transactional or customer service data to mine. Expert opinion will be needed to develop a qualitative forecast. Purchased customer information may not be specific to the product, but customer information can help shape expert opinions so they can be based on more than just intuition.

For an innovative product introduction at a new organization, which of the following would provide the best guidance for how many items to produce initially? A. Expert opinion guided by intuitive knowledge B. Expert opinion guided by purchased customer data C. Data mining guided by customer segment information D. Data mining guided by sales and operations planning

Tool to support existing and potential customer needs
Information gathered in the customer relationship management (CRM) process is used to support service to customers and potential customers and sales and marketing decisions, not resource and production planning.

Which of the following is part of the correct definition of customer relationship management? A. Tool to manage marketing, sales, supply planning, and production scheduling B. Primarily a software system for transactions and decision making C. Focused on forecasting and analysis of information D. Tool to support existing and potential customer needs

Systems should be measured against whether they increase efficiency and meet customer expectations.
Good CRM technology is easy to use and meets customer expectations. Successful implementation of CRM technology rests on a clear, well-thought-out architecture. Rather than inhibiting change, good design enhances integration and lessens the chances of conflicts as the system evolves. Since it may involve redefining jobs, implementation teams should be cross-functional.

Which of the following statements about implementing customer relationship management (CRM) technology is correct? A. Implementation teams should represent technological areas only. B. If technology is optimal, job responsibilities may remain static in the new system. C. Systems should be measured against whether they increase efficiency and meet customer expectations. D. Detailed architecture design at an early stage may lead to an inflexible system that is difficult to change.

Cloud-based CRM system available as an SaaS subscription from a vendor
Cloud-based technology is virtual software and/or a database that can be accessed from anywhere over the internet. SaaS, or software as a service, is technology hosted by a third party and accessed over the internet, so it can be immediately accessed from anywhere. These solutions would satisfy the organization’s need for remote and fast access to CRM technology.

An organization has a diverse sales force, and salespeople frequently work from home or on the road. The organization wants to add CRM technology solutions very quickly. Which of the following would best help this organization meet these goals? A. CRM software solution with a single integrated logical database B. Cloud-based CRM system available as an SaaS subscription from a vendor C. ERP CRM solution with a customer data warehouse (CDW) D. Cloud-based CRM system available as purchased software

understanding the customers’ business requirements.
B2B customers value a provider’s understanding of how their business operates, what its limitations and concerns are, how the product or service fits into the customers’ business, and what requirements may be part of the purchasing process. They would rather not re-educate each provider.

Sales training to increase business-to-business (B2B) customer loyalty should focus on A. learning about the customers’ core competencies. B. educating customers on the organization’s core competencies. C.understanding the customers’ business requirements. D. teaching customers the best way to resell the organization’s product or service.

Free shipping for high-volume customers
A loyalty program simultaneously rewards repeat or high-value customers and encourages continued business through special incentives.

Which of the following is an example of a loyalty program? A. Introductory rates B. Free shipping for high-volume customers C. Customer profiling system D. "Buy one, get two" offer

Predictive churn
Predictive churn uses data about individual customer transactions and histories to identify trends that indicate that a customer may switch to a competitor or cease being a customer. As a result, the vulnerable customer may be offered incentives, such as loyalty programs. The data used in the model may be gathered through data mining.

What is the correct term for a customer relationship management (CRM) tactic described as "an analytical model to identify vulnerable customers"? A. Data mining B. Predictive churn C.Loyalty programs D. Win-back programs

up-selling.
Up-selling is a customer relationship management tactic in which customers are offered higher-priced or more profitable items instead of the item they were originally considering. The operator in this case may be supported by a workflow that suggests specific models and links to more data in an electronic catalog or data about the customer's previous purchases that suggest a tendency toward higher-priced purchases.

You are ordering a camping tent through the call center for a recreational equipment manufacturer. The operator notes that for a little more money you could receive significantly more value in another tent model. This is an example of A. a loyalty program. B. a win-back program. C. up-selling. D. cross-selling.

analyze the customer data to predict customer behaviors.
One of the key goals of campaign management is to analyze the customer data to predict customer behaviors.

A key aspect of campaign management for vulnerable customer campaigns is to A. analyze the customers’ needs and provide alternatives that pique their interest. B. generate automated responses to vulnerable customers. C. generate segmented contact databases with high quality leads. D. analyze the customer data to predict customer behaviors.

They increase the need for customer relationship management (CRM) activities.
Lifetime customers increase the need for CRM, but they also make it a little easier as the business learns more about them over time. Total marketing costs decline, satisfaction increases with better customer understanding, and both revenue and profits increase.

Which of the following situations applies to lifetime customers? A. They increase the need for customer relationship management (CRM) activities. B. They tend to have a null effect on revenue but a positive effect on profit. C. They are more difficult to satisfy than first-time or short-term customers. D. They increase total marketing costs.

One-to-one marketing cannot be achieved without using a CDW.
Because it allows a high degree of customization, one-to-one marketing programs cannot be implemented without using a CDW. CDWs are used for a variety of purposes, including segmentation, implementing different offers to customers, analyzing buying behaviors to detect preferences, and supporting strategic decisions, such as the allocation of human resources. They are usually used in conjunction with information from a company's other databases.

Which of the following statements about a customer data warehouse (CDW) is correct? A. One-to-one marketing cannot be achieved without using a CDW. B. CDWs are maintained as separate entities from a company's customer databases. C. Customers are encouraged to access and update their profiles for accuracy. D. CDWs are primarily used as measurement tools.

sustainable if some customers can be retained long term.
The costs of acquiring new customers tend to be front-loaded in the relationship. If enough customers can be retained over the long term, the cost of retaining them declines as the profits derived from them increase.

A situation in which the costs of initial customer marketing and relationship building consistently result in expenses in excess of the revenues they generate is A. unsustainable and the strategically set prices should be raised. B. sustainable if some customers can be retained long term. C. normal if the product is in the development stage but not if it's in the growth stage. D. normal if the product is in the growth stage but not if it's in the maturity stage.

creating lifetime customers.
While businesses may employ customer segmentation, competitive differentiation, and niche marketing to appeal to customers, this strategy describes the creation of lifetime customers.

A business is attempting to create more powerful bonds with its customers by delivering greater customer satisfaction and mutual dependence. This business is pursuing a strategy of A. competitive differentiation.
B. customer segmentation.
C. creating lifetime customers.
D. niche marketing.

creating more profitable customer relationships.
The primary focus of CRM is on creating and maintaining more profitable relationships with customers, which has led organizations to transform themselves into customer-driven organizations.

In the supply chain model, customer relationship management (CRM) is instrumental in A. ensuring supply at the retail level. B. aligning distributors with retailers. C. creating a higher number of one-time customers. D. creating more profitable customer relationships.

Technology plays a supporting role in CRM and SRM.
While CRM and SRM are not synonymous with technical tools (they are philosophies and competitive strategies), they are both greatly supported by technological solutions.

Which of the following statements about technology and customer relationship management (CRM)/supplier relationship management (SRM) is true? A. Both CRM and SRM are essentially technological. B. The effects of technology are more significant in SRM than CRM. C. Technology plays a supporting role in CRM and SRM. D. Both A and B

Service, quality, price
According to research, retail customers' decisions to purchase products are influenced most by the bundle of services surrounding the products, followed by the quality of the product and, finally, price.

What are the top three factors, in order of importance, that influence most retail customers' decisions to purchase products? A. Quality, price, service B. Price, design, quality C. Price, service, quality D. Service, quality, price

Minimizing the number of tasks that need to be performed sequentially
CRM process strategy should focus on improving time to market for these activities by: -Reducing demand management tasks to just those that are value-added -Executing demand management tasks as quickly as is feasible -Maximizing the number of tasks that can be performed concurrently rather than needing to be done sequentially.

Which of the following is a process change that would improve the time to market of CRM activities? A. Focusing attention on planning and executing rather than on analysis and feedback B. Minimizing the number of tasks that need to be performed sequentially C. Removing value-added demand management tasks when feasible D. Omitting customer value from measures of the number of win-back customers saved

Company that manufactures power tools for professional contractors
Companies that can benefit from knowing more about the end customer or shaping the needs and wants of the end customer will be most interested in customer relationship management (CRM). The manufacturer of power tools must design, manufacture, and sell tools that appeal to customers. The other companies are suppliers that must satisfy a purchaser's technical qualifications or expectations.

Which of the following companies is most likely to be interested in customer relationship management (CRM)? A. Company that manufactures power tools for professional contractors B. Company that develops billing application software for a health-care provider C. Company that fabricates fiberglass insulation for a heating equipment manufacturer D. Company that manufactures testing equipment for a laboratory builder

II and IV only
Computer algorithms can be used to model customer behavior. A best practice is to base such algorithms on demographics and historical purchasing patterns and limit use of assumptions or projected behavioral traits.

When designing the CRM strategy for computer algorithms for segmenting customers and prospects, which of the following is the best input data, according to best practices?
I. Expert opinion or assumptions II. Demographics III. Projected behavioral traits IV. Historical purchasing patterns
A. I and III only B. II and III only C. II and IV only D. III and IV only

Which of the following is most likely to be true when individuals from design manufacturing and sales work as a team?

Which of the following is a guideline for product demonstrations?

Which of the following is true of a trial commitment quizlet?

Which of the following is a disadvantage of a personal visit for post sale follow ups?