CRM and Customer Retention Quiz

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the goal of customer relationship management?

Collecting customer addresses and contact information

Minimizing customer feedback and complaints

Identifying profitable customers and building customer loyalty (correct)

Maximizing sales through aggressive marketing techniques

What are the three stages in the CRM cycle?

Advertising, public relations, and social media management

Sales promotion, product development, and market analysis

Marketing research, business development, and customer feedback (correct)

Customer acquisition, order fulfillment, and billing

What type of information can companies collect through CRM?

Information on competitors' strategies and market trends

Information on recent transactions, customer satisfaction surveys, etc. (correct)

Only financial information of the customers

Only customer addresses and contact information

What does CRM involve working with?

Employees and the external customer Signup and view all the answers

What is a common criticism of CRM programs according to the text?

They focus too much on transactions and not on other aspects of the customer’s life. Signup and view all the answers

What is one of the applications of CRM databases mentioned in the text?

Customizing offerings and cross-selling other products and services. Signup and view all the answers

What is identified as a potential concern regarding the future of CRM?

Time needed to input data and manage the information Signup and view all the answers

What can be done with transaction and purchase data from CRM databases, according to the text?

Segmenting and modifying messages to enhance marketing effectiveness. Signup and view all the answers

What is highlighted as an issue related to privacy concerns and CRM?

Consumers' reactions to the growing use of databases Signup and view all the answers

What is mentioned as an aspect of the future of CRM?

Continued use of the newest and best technologies Signup and view all the answers

What does data mining help identify, according to the text?

The most profitable customers and prospects Signup and view all the answers

What is one of the applications of CRM databases related to marketing, as mentioned in the text?

Designing targeted marketing to enhance effectiveness Signup and view all the answers

What is highlighted as an expectation of consumers regarding their interactions and buying-related experiences?

Wanting to interact anywhere anytime and expecting all interactions to be easy Signup and view all the answers

What is mentioned as a concern related to privacy and CRM in the text?

Diminished trust if the consumer feels the knowledge gained from database information is being used inappropriately Signup and view all the answers

What is mentioned as a potential benefit of CRM databases according to the text?

Enhancing customer service Signup and view all the answers

What is mentioned as a potential issue related to the future of CRM?

Consumers expectation of their decisions and buying-related experiences have risen Signup and view all the answers

What are the three stages involved in the CRM cycle?

Marketing research, business development, and customer feedback Signup and view all the answers

What is the focus of business development in the CRM cycle?

Identifying customer relationships, capturing relevant data, and data mining Signup and view all the answers

What does data mining help in discovering?

Anomalies, patterns, correlations, and trends Signup and view all the answers

What does identifying customer relationships involve in the CRM cycle?

Customizing products and services, focusing on customer satisfaction, and empowering employees Signup and view all the answers

What are the touchpoints involved in capturing customer data in the CRM cycle?

QR codes, emails, customer service calls, registrations, and web-based interactions Signup and view all the answers

What is the purpose of using CRM to identify high-profit and high-potential customers?

To analyze and interpret the data to develop customer profiles Signup and view all the answers

What does RFM analysis help identify in the CRM cycle?

Customers who have purchased recently and often and have spent considerable money Signup and view all the answers

Why is customer feedback considered essential in CRM?

To maintain long-term relationships Signup and view all the answers

Study Notes

Building Customer Loyalty and Retaining Valued Customers

The CRM cycle involves three stages: marketing research, business development, and customer feedback.
Marketing research involves creating offerings based on market research to develop a holistic CRM system.
Business development focuses on identifying customer relationships, capturing relevant data on interactions, and data mining to answer specific questions and make data-driven decisions.
Data mining helps in discovering anomalies, patterns, correlations, and trends, and answers questions related to market segmentation, profitability, online retail, asset management, and cross-selling.
Confounding variables can simultaneously cause predictor/independent variables and dependent variables.
Identifying customer relationships involves customizing products and services based on gathered data, focusing on customer satisfaction and retention, and an internal management philosophy that empowers employees to negotiate mutually satisfying commitments with customers.
Understanding interactions of the current customer base involves capturing customer data through touchpoints like QR codes, emails, customer service calls, registrations, and web-based interactions.
Capturing customer data involves collecting and integrating data from store visits, website visits, phone conversations, and wireless communications, and using technology to manage the data.
Companies need to use CRM to identify high-profit and high-potential customers, and analyze and interpret the data to develop customer profiles.
Data mining involves searching the data warehouse, capturing relevant data, categorizing, developing customer profiles, and analyzing RFM (Recency, Frequency, and Monetary) data for customer segmentation and LTV (Lifetime Value) analysis.
RFM analysis helps identify customers who have purchased recently and often and have spent considerable money, and LTV analysis projects the future value of customers.
Customer feedback is essential to maintain long-term relationships, and overreliance on technology and data can result in losing sight of this goal.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Test your knowledge of customer relationship management (CRM) and customer retention with this quiz. Explore topics such as marketing research, business development, data mining, customer relationships, customer data capture, and the importance of customer feedback in building loyalty.