_____ is a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer segments.
Customer relationship management (CRM)
Customer relationship management:
is often described as a closed-loop system
To initiate the CRM cycle, a company must first:
establish customer relationships with the organization
Which of the following statements about the CRM cycle is true?
The CRM cycle is continuous and circular with no predefined start or end point.
A company that has a(n) _____ customizes its product offerings based on data generated through interaction between the customer and the company.
Customer-centric is an internal management philosophy similar to:
the marketing concept
In a CRM environment, _____ is defined as the informal process of collecting customer information through customer contacts and feedback on product performance.
_____ is the process by which learned information from customers is centralized and shared in order to enhance the relationship between customers and the organization.
_____ refers to the latitude organizations bestow on their representatives to negotiate mutually satisfying commitments with customers.
A(n) _____ is the point at which a customer and a company representative exchange information and develop learning relationships.
Which of the following statements about touch points is true?
a. Data gathered at external touch points, once interpreted, provide information that affects internal touch points. b. A customer applying for a credit card is an example of a touch point. c. Companies are publicizing their Web sites as the first touch point for customer interactions. d. A customer complaint is an example of an external touch point. e. All of these statements about touch points are true.
In a CRM system, _____ are all areas of the business where customers have contact with the company and data may be gathered and used to guide and direct the decision making within that business unit.
_____ interactions occur when customers buy products in a store.
Which of the following is a guideline for a successful CRM system?
Customer information is kept in a centralized repository.
The traditional approach for acquiring data from customers is through:
Which of the following is an example of a channel through which customer data are traditionally gathered?
a. store visits b. conversations with salespeople c. interactions via the Web d. phone conversations e. all of these
An organization should view every transaction as:
the opportunity to collect vast amounts of data about the customer
When viewed as an interaction between the organization and the customer, a transaction can produce all of the following customer data EXCEPT:
information about the customer's relationship with other customers
A(n) _____ is a central repository for data from various functional areas of the organization. These data can be shared by all of the organization's departments.
The core of the data warehouse is:
A _____ is essentially a very large, corporate-wide database, culled from a number of separate systems, such as billing, accounting, order fulfillment, distribution, customer service, and marketing and sales, already in place within an organization.
A(n) _____ list generally includes names and addresses gleaned from directories or membership rosters.
_____ is the addition of information to customer or prospect records for the purpose of better describing or better determining the responsiveness of customers or prospects
Which of the following statements about a CRM system is true?
A critical component of a CRM system is the use of the appropriate technology to store and integrate customer data.
_____ is the process of finding hidden patterns and relationships in the customer data stored in the data warehouse.
Which of the following techniques used to analyze marketing databases considers whether a customer has made a purchase recently as well as how often that customer makes a purchase?
recency-frequency-monetary analysis (RFM)
The basic assumption of _____ is that marketing to repeat customers is more profitable than marketing to first-time buyers.
lifetime value analysis
_____ uses a past set of occurrences to predict the likelihood that some other occurrence, such as a response or purchase, will take place in the future.
Designer Linens Outlet uses CRM to track visitors to its Web site. This tracking allows the retailer to confidently project the value of its repeat customers through its application of:
lifetime value analysis
_____ involves developing product offerings customized for the appropriate customer segment and then pricing and communicating these offerings for the purpose of enhancing customer relationships