Exam 21: Customer Relationship Management (CRM)

The core of the data warehouse is:

All the following are U.S.privacy Acts EXCEPT:

Compare and contrast a data warehouse and a database.

Blood Services As flextime, consulting, telecommuting, and downsizing make it more difficult for people to donate blood at the workplace, Brooklyn/Staten Island Blood Services has launched a CRM marketing campaign to boost awareness and repeat donations. Early in the campaign it went to its listings of previous donors and pulled out those with birthdays in February, March, and April. These donors were sent a birthday card with the greeting, "On the anniversary of your life, would you consider saving another's life?" -Refer to Blood Services.The organization used CRM marketing to:

Which of the following statements about the CRM cycle is true?

A(n)_____ list generally includes names and addresses gleaned from directories or membership rosters.

The Detroit Tigers,a Major League Baseball team,used customer satisfaction surveys of season ticket holders to determine why the number of season ticket holders was declining.This survey was an example of a(n):

Volvo has a Web site that caters to car enthusiasts who might want to see concept cars evolve into real-life products.Volvo would likely have used data mining to locate people who were car enthusiasts and innovators.

Les Ailes de la Mode,a Quebec retailer,offers its customers Les Ailes MasterCard.The card is connected to a points program that offers one point for every $20 of purchases on the card and triple that on purchases made at Les Ailes.It also incorporates an electronic chip,through which a $10 coupon is awarded to each member every month via the electronic gift card (on purchases of $10 or more every month).Card members also receive free subscriptions to the retailer's Les Ailes magazine.This shows how CRM can be used:

Kraft Foods Kraft Foods has created the Kraft food & family magazine. Inside each magazine there are recipes, coupons for Kraft products, and new product ideas. Readers can vote and provide ratings and feedback on their favorite recipes at kraftfoods.com. Readers are also encouraged to provide their own recipes that they have created. To receive the magazine a consumer has to fill out a "profile" which asks such questions as whether or not they like to cook, their age and the ages of their kids, their gender, and preferred language. Visitors to kraftfoods.com are required to sign in to vote or suggest ideas to the company. Kraft then sends a "thank you" email for participating in their Web site. These activities show that Kraft is involved with its most loyal customers. -Refer to Kraft's food & family.Kraft's food & family magazine encourages customers to visit the company's Web site to vote and provide ratings and feedback on their favorite recipes.Kraft then sends a "thank you" email for responding to their Web site.All of these activities show that Kraft is:

For a catalog retailer,the contact between the customer and the company's order taker would be an example of a touch point.

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. Some consumers may not want others to provide their names to the Sparks organization. This reflects which concern regarding CRM programs?

Blood Services As flextime, consulting, telecommuting, and downsizing make it more difficult for people to donate blood at the workplace, Brooklyn/Staten Island Blood Services has launched a CRM marketing campaign to boost awareness and repeat donations. Early in the campaign it went to its listings of previous donors and pulled out those with birthdays in February, March, and April. These donors were sent a birthday card with the greeting, "On the anniversary of your life, would you consider saving another's life?" -Refer to Blood Services.What technique did the organization use to analyze its donor information?

Kraft Foods Kraft Foods has created the Kraft food & family magazine. Inside each magazine there are recipes, coupons for Kraft products, and new product ideas. Readers can vote and provide ratings and feedback on their favorite recipes at kraftfoods.com. Readers are also encouraged to provide their own recipes that they have created. To receive the magazine a consumer has to fill out a "profile" which asks such questions as whether or not they like to cook, their age and the ages of their kids, their gender, and preferred language. Visitors to kraftfoods.com are required to sign in to vote or suggest ideas to the company. Kraft then sends a "thank you" email for participating in their Web site. These activities show that Kraft is involved with its most loyal customers. -Refer to Kraft's food & family.To be useful to the whole organization,the data collected by Kraft Foods through their food & family magazine initiative must be centralized.This process of centralizing data for a CRM system is termed:

Response lists are especially important in database creation because past behavior is a strong predictor of future behavior.

Looking to build up its postpurchase relationships,General Motors recently launched a service whereby GM vehicle owners can sign up to get e-mail service reminders,access information about GM vehicles,and receive special promotions.General Motors is using _____ to enhance its customer relationships.

RFM analysis is used to delete unnecessary or duplicated data.

A common CRM application is cross-selling other products or services to customers.

The My Coke Rewards program allows consumers to earn reward products and services by registering points they receive by consuming Coca Cola products.The My Coke Rewards program allows Coca Cola to collect information about consumers that they can use to optimize profitability,revenue,and customer satisfaction.The My Coke Rewards program is an example of a(n)_____ program.

Ford Motor Company has launched an online effort to market its F-Series trucks.It hopes to use its database capabilities to capture valuable data on car buyers.Ford plans on cross-referencing new F-series owners with the database generated from this online campaign to see how many names are duplicated.Ford will use these data to forecast which campaigns have the greatest probability of success.Which of the following methods will Ford most likely use to analyze these data?