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A series of test questions and answers related to customer relationship management (crm). It covers key concepts such as crm functions, benefits, software capabilities, customer life cycle, customer lifetime value (clv), customer equity, and customer satisfaction strategies. The questions are designed to test understanding of crm principles and their application in business. It also includes information practice principles and non-disclosure agreements. This resource is useful for students and professionals studying or working in marketing, sales, and customer service.
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CRM (customer relationship mgmt) - correct answer combination of policies, processes and strategies that unify customer interaction and provide a mechanisms for tracking customer information leads - correct answer information about a potential customer prospects - correct answer a qualified and interested potential customer CRM functions - correct answer capture internal data, provide business users with customer data, conduct business analysis, deliver tailored marketing mix Benefits CRM - correct answer unified customer interactions, covert leads to customers, provide data for marketing and sales insights (operational, analytical and collaborative) CRM software capabilities - correct answer track variety of customer interactions, analysis tools, capture data across customer life cycle
customer life cycle - correct answer steps in customer relationship with company from initial contact to loyalty Challenges CRM - correct answer concerns about privacy, some customers can be ignored, system must be integrated into normal workflows and compatible with existing systems Customer life cycle steps - correct answer reach, acquisition, conversion, retention, loyalty/advocacy Reach - correct answer getting a prospective customers attention acquisition - correct answer brining a prospective customer into a sphere of influence conversion - correct answer turning a prospect into a paying customer
sales annually by customer, number of years and months the average customer remains active, cost of acquiring a new customer CLV formula - correct answer (profit margin per customer * x number of years customer is active) - cost of acquiring customer 80/20 - correct answer 80% of a company's sales are generated by 20% of its loyal customers customer equity - correct answer combined CLV of all the company's customers (more loyal customers with higher CLV) customer equity formula - correct answer total of all expected purchases of all a company's customers - cost of acquiring and retaining those customers higher Customer equity - correct answer more future revenues in the lifetime of a company's customers (more valuable)
customer equity drivers - correct answer value equity, brand equity, retention equity value equity - correct answer how the customer assesses the value of the product or service provided by the company brand equity - correct answer how the customer assesses the value of the brand above its objective value retention equity - correct answer tendency of the customer to stick with the brand (even when its priced higher than an otherwise equal product) influence customer equity - correct answer improving customer services, the value or desirability of the brand, trust of the customer toward the brand role of marketing - correct answer identify customers, satisfy customers, retain customers