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Exam 21: Customer Relationship Management (CRM)

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Question 51

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In the RFM analysis model,"R" stands for:

A) returning
B) recency
C) reimbursement
D) relationship
E) retention

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Question 52

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How can a company measure its success at implementing customer relationship management (CRM)techniques? How does empowerment influence CRM marketing?

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The success of CRM can be directly measu...

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Question 53

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Which technique was likely used to suggest that a customer who wanted to buy a $29 shirt would also be a likely prospect for a cigar humidor.

_____ refers to the latitude organizations bestow on their representatives to negotiate mutually satisfying commitments with customers.

As a predictive tool,data mining has limited utility.

Frequent Fliers If you think George Clooney's character in the movie Up in the Air was pure fiction, think again. Clooney portrayed a frequent flier who enjoyed top-of-the-line perks the likes of which even most "elite" fliers don't experience. That's because he was a member of American Airline's invitation-only ConciergeKey recognition program. Most airlines maintain these unpublished super elite frequent-flier plans, such as Continental's Chairman's Circle and Delta's Executive Partner programs. These programs are reserved for the highest-volume customers in terms of miles flown or highest-value in terms of revenue. You'll have to fly upwards of 300,000 miles or spend $50,000 a year to be invited. -Refer to Frequent Fliers. American Airlines gives its gate employees the authority to hold up a connecting flight when a ConciergeKey member's incoming flight is delayed. The delegation of this authority to a gate employee is called:

Multinational companies often face difficult problems when pulling together internal data about their customers.

Hudson's Bay Company has Canada's largest reward program--HBC Rewards,which enables members to earn points at Hudson's Bay family of stores,including The Bay,Zellers,Home Outfitters,and hbc.com.Consumers can redeem points for over 600 rewards in the HBC Rewards catalog,including travel,leisure and entertainment items,Air Miles reward miles,or Bay and Zellers gift certificates.Which of the following provides the most likely reason why Hudson's Bay Company implemented this reward program?

The United States has the most restrictive privacy laws in the world.

The basic assumption of _____ is that marketing to repeat customers is more profitable than marketing to first-time buyers.

Customer-centric is an internal management philosophy similar to the marketing concept.

Technology plays a major role in any CRM system.

Privacy issues are the primary reason for centralizing data in a CRM.

_____ is a company-wide business strategy designed to optimize profitability,revenue,and customer satisfaction by focusing on highly defined and precise customer segments.

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.

When Coca Cola sent users of the My Coke Rewards program digital coupons for free trials of its new Coke Zero product more than 100,000 people redeemed them.It would have cost Coke far more to randomly distribute enough coupons to the general market to get that level of sampling.This is an example of the power of the _____ approach.

Los Angeles Sparks The WMBA's Los Angeles Sparks is an example of a sports franchise adopting a CRM approach to grow their fan base. The Sparks CRM system, provided by software vendor "Smart Button" manages all email promotions sent to fans. Additionally, the sparks online fan site keeps fans informed of upcoming games, practices open to the public, team events, and more. The Sparks also instituted their new Home Court Advantage program that awards season ticket holders points for each seat they purchased for the season, that ticket holders can give to others. The ticket holders can actually earn extra points by telling Sparks at ticket renewal time who's getting the seats. At the end of the season, the top three point-givers receive cash prizes. The Sparks organization is gathering information on the ticket holder as well as the people that attend games with the free tickets. As a result, the Sparks have seen a sharp rise in late-season ticket sales this year. -Refer to the Los Angeles Sparks.The information gathered from ticket holders will probably become part of the organization's _____ list.

CRM concerns many Americans because:

Through the application of knowledge management,the Lands' End clothing catalog retailer would have learned that a substantial number of its customers would like Lands' End to offer a line of maternity wear.

For a CRM system to be effective,customer information must be stored in a data matrix.