Exam 10: Customer Relationship Management

Customers of companies that use CRM applications, should not be concerned with their personal information becoming compromised or being shared with other companies, because of the law.

When an organization attempts to offer the right products and services to customers at the right time through the offer of individual promotions tied to specific events like birthdays and anniversaries, this is referred to as:

Sales force automation products manage a sales person's accounts, business opportunities, and communications.

Creating a good CRM plan is necessary prior to purchasing a CRM system.Briefly describe a CRM plan.

While a well-planned and organized CRM initiative can be extremely useful in developing effective and efficient marketing programs for retailers, they are not particularly helpful for manufacturing companies like GM since their touches with the customer are few.

According to the text, poor planning is typically the cause of most unsuccessful CRM initiatives.

Today, successful CRM applications will be measured by the personal value created for the users.

Define THREE of the goals of the common CRM program.How does CRM software attempt to achieve each of these goals?

A practical independent measure firms can take to improve information security is:

Users in a company can retrieve and study a large amount of information about consumers by housing that information in a centralized database that is commonly referred to as a:

Firms can safeguard customer information by doing which of the following?

The online retailer Ecatalog.com has decided to send consumers of the new John Grisham book an e-mail with suggestions for books with similar themes and has also offered them a 20% discount if those suggested books were purchased.This type of marketing/promotion is an example of:

Tire manufacturer Firebridge sells tires to retail firm A.Average annual sales for firm A is $55,000.Average profit margin is 15%.The expected lifetime is 10 years.Using a discount rate of 15 percent, calculate the Customer Lifetime Value of firm A and choose the closest answer below:

Which of the following are required elements of an effective CRM initiative?

Why do so many CRM programs fail?

Until recently, CRM was not very effective for most companies because it didn't focus on building customers' trust and loyalty, or building strong relationships with customers.

When web sites suggest other items for purchase based on already purchased items, this is an example of Clickstream Selling.

All of the following are recommended for designing and implementing a successful CRM program EXCEPT:

Segmenting customers on the basis of things like products purchased, sales history, demographic information, and desired product features can dilute the results of a CRM program.

The three inputs for calculating Customer Lifetime Value are Average Annual Sales, Expected Lifetime and Forecasted Profits.