Exam 18: Customer Relationship Management CRM

Transactions do not provide any information beyond the customer's name,address,and phone number.

Suppose a firm builds long-term relationships with clients by focusing on what satisfies and retains valuable clients.Which of the following BEST describes the firm?

According to the text,which of the following statements about a CRM system is true?

L.L.Bean,Inc.has been reducing the number of catalogues it sends out over the past several years while increasing its sales and profits.L.L.Bean now uses a number of criteria to establish a model showing which catalogues buyers purchased from and to judge their likelihood of buying from a catalogue that they have never purchased from. -Refer to L.L.Bean,Inc.What does L.L.Bean use to collect this information?

In 1981,the producers of Butterball Turkey opened the Butterball Turkey Talk-Line.Created to assist struggling chefs with preparing the holiday bird,the Butterball Turkey Talk-Line was initially staffed with six home economists who responded to 11,000 phone calls in its first year.The Butterball Turkey Talk-Line is known as "the granddaddy of all help lines." Today the staff of 45 home economists and nutritionists responds to over 100,000 questions each November and December.In keeping with its history of technological advances,Butterball launched butterball.com in 1995,one of the first consumer websites,complete with turkey preparation tips and favourite recipes from the Butterball kitchens.Butterball Turkey's commitment to providing premium products and renowned customer service has prevailed as a long-standing tradition to call on,not just at the holidays,but all year long. -Refer to Butterball Turkey.By having the customers initiate the communication with Butterball and developing learning relationships between the company and its customers,what was Butterball establishing?

The first step in establishing a customer relationship management cycle is to acquire and capture all relevant information about existing and potential customers.

In 1981,the producers of Butterball Turkey opened the Butterball Turkey Talk-Line.Created to assist struggling chefs with preparing the holiday bird,the Butterball Turkey Talk-Line was initially staffed with six home economists who responded to 11,000 phone calls in its first year.The Butterball Turkey Talk-Line is known as "the granddaddy of all help lines." Today the staff of 45 home economists and nutritionists responds to over 100,000 questions each November and December.In keeping with its history of technological advances,Butterball launched butterball.com in 1995,one of the first consumer websites,complete with turkey preparation tips and favourite recipes from the Butterball kitchens.Butterball Turkey's commitment to providing premium products and renowned customer service has prevailed as a long-standing tradition to call on,not just at the holidays,but all year long. -Refer to Butterball Turkey.Butterball's commitment to providing premium products and renowned customer service indicates a commitment to which of the following?

In Canada,Kraft Foods has launched its website (www.kraftcanada.com)with enhanced content that provides "what we [Kraft Foods] knew our consumers were looking for,based on the information they had shared." What type of interactions is Kraft Foods using to send and receive communications from its customers?

Many high-end hotel chains award points for every dollar spent in one of their hotels.Customers who earn a high number of points are given special privileges that may include upgraded hotel rooms or several free nights.This application of one-to-one marketing is an example of which of the following?

According to the text,what does database enhancement refer to?

As flextime,consulting,telecommuting,and downsizing make it more difficult for people to donate blood at the workplace,Canadian 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 card sent by the organization is an example of which of the following?

Andy recently purchased a new surge protector for his computer using a $20 rebate offer.He completed the rebate certificate and sent it to the manufacturer.The rebate certificate contained Andy's full name,his phone number,his address,and some purchase information.What has Andy most likely become part of?

The traditional approach for acquiring data from customers is through which of the following?

Lesley Owens has limited money to invest in a mailing to people who might be interested in subscribing to a new magazine about making scrapbooks.She wants to mail to those prospects with the highest probability of becoming subscribers.What should Owens use?

Data mining is an analytical process that compiles actionable data about the purchase habits of a firm's current and potential customers.

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

According to the text,which of the following statements about touch points is true?

What is a data warehouse? How does it differ from a database?

Which of the following is simply the act of building a model in a situation where the answer is known and then applying the model in a situation where the answer is unknown?

Briefly describe how,why,and when an organization uses data mining.