Adaptive Learning Assignment (ALA) - Customer Relationship Management Systems

Which of the following explain the importance of CRM to businesses? More than one answer can be selected.

- CRM systems provide insights into customer satisfaction metrics

- Systems assist organizations to help synchronize customer interactions

- CRM is used to manage critical relationships

Which of the following statements about CRM systems use in customer acquisition are true?

Organizations often track customer acquisition using a lead generation funnel

Customers can be acquired using a number of approaches including social media, search, affiliate, referral, and email marketing. *

CRM software systems track prospective customers (and current customers) through the various stages of the funnel

According to Salesforce.com, which of the following are factors to consider when selecting a customer segmentation tool? More than one answer can be selected.

Cost

Data collection tools

Integration

Which of the following statements about how CRM systems assist businesses in targeting a market segment are true?

An organization's target market shares common characteristics including geographic location, demographic and psychographic backgrounds, and income level

Analysis of customer characteristics is an important part of the target market identification process.

CRM software is often used to identify an organization's target market and to provide critical insights into the profiles of these customers.

CRM systems provide a variety of analytical tools, including those used to identify and understand the target market.*

Organizations must precisely identify their target markets so they best utilize resources when marketing to potential and existing customers.*

CRM systems are used to collect data from customer transactions. This data is used for target market identification.

According to Hubspot, in a recent survey________% of sales professionals rated sales prospecting as the most difficult stages in the sales process. CRM systems can assist with prospecting sales targets. Please enter a number for your answer.

42

Which of the following are considered customer interaction metrics? More than one answer can be selected.

Marketing

Service

Sales

CRM software assists organizations in identifying marketing qualified____

leads

According to Salesforce.com, segmented marketing campaigns have been shown to generate an average of a 760% increase in revenue. When selecting a customer segmentation tool Salesforce.com has identified four factors to consider. One of these factors is integration. Integration is:

The ability to efficiently link data from various sources and platforms.

Which of the following are popular CRM options that are used to assist with sales prospecting?

Zoominfo

LinkedIn Sales Navigator

Clearbit Prospector

Research shows that qualified sales leads result in better close rates and a higher return on ______ (ROI). This process can be difficult to execute without the assistance of CRM software.

Investment/s

Select the sources of information that a CRM system uses to collect data about current customers.

Customer Surveys

Customer interaction encompasses all the communication that takes place between a customer and an organization. This includes which of the following:

Email

Social media

Traditional mail

Which of the following are types of qualitative data?

Instructions

Attitude, Opinion, Motivation

Select the true statements about CRM systems and how they assist businesses in qualifying potential customers

Pursuing unqualified leads can be costly to a company because spending marketing dollars to pursue them often does not succeed

Qualifying a potential customer occurs when an organization determines whether or not an individual or business makes sense to pursue as a potential customer.

Many CRM software programs offer the opportunity to create customized sales funnels based on specific organizational needs and sales characteristics.

Match the term regarding sources of customer data to the correct statement.

Instructions

...

Match the types of CRM analytics with the correct description.

Instructions

...

By 2021 customer relationship management systems, as predicted by the Gartner IT Services company, will be the single largest revenue area of spending in ____ software

enterprise

The design of a CRM system that collects data on customer interaction should include which of the following elements?

Automation

Treating customers as individuals

Monitoring customer interactions

Which of the following are types of identity data?

Name, Addresss, Gender, Date of Birth

A _____ share of customer or share of wallet means that existing customers are spending more to purchase products or services from one organization than they are from direct or indirect competitors.

High

Select what's true about how businesses use CRM systems to analyze customer information.

Information is gathered from point of sale and e-commerce technology as well as through customer interactions.

Customer relationship management (CRM) analytics provides insights into customer behavior that can be used to make informed business decisions.

Often CRM systems use data mining to extract information from a customer database.*

Select what's true about how businesses use CRM systems to develop relationships with customers.

Information from CRM systems can be efficiently and intelligently used to make informed business decisions and to develop relationships with their customers.

Data collected by CRM systems includes customers' likes and dislikes, what content they engage with, and what they post about competitors.*

CRM systems provide organizations a clear overview of their customers.

Customer ____ is the value that the future lifetime revenue an organization's customers will generate minus customer acquisition costs and customer retention costs

equity

Share of wallet is also known as share of

customer

Select the true statements about customer profitability.

It is the amount of profit an organization makes from selling products or services to a customer or group of customers over a specified time period.

CRM systems are used to measure customer profitability.

CP is calculated by subtracting the costs associated with sales and engagement from the revenue earned from the sales of products or services.

Select the true statements about Customer Lifetime Value (CLV).

One of the key metrics used to determine the profitability of an organization's customers.

Organizations use CLV to determine how much they should spend to acquire new customers versus how much they should spend to retain existing customers.

One of the benefits of using a CRM system is that data can be analyzed and provided to assist in measuring customer ____. It is the value that the future lifetime revenue an organization's customers will generate minus customer acquisition costs and customer retention costs.

Equity

Select the true statements about the risks involved with storing customer data.

According to research by Risk Based security, there were 2037 publicly reported data breaches in the first half of 2020.

The main reason most data breaches occur is due to misconfigured databases and services.

In the first half of 2020, data breaches exposed over 27 billion records of information.

According to the FTC Section _______ , the government has the authority to prevent unfair or deceptive trade practices. The FTC has the authority to take legal action against organizations that fail to implement and maintain reasonable data security measures, fail to publish and follow a privacy policy, and fail to provide sufficient security for personal data stored by the organization.

5

Select the true statements about the use of CRM in customer profitability analysis.

CRM systems are used to measure customer profitability.

CRM software is often used to analyze large data sets contained in a database to determine which customers are the most profitable.

In 2015 ___ , faced the Cambridge Analytica scandal in which the firm paid Facebook to acquire its users' personal data. It is estimated that over 87 million people were affected by this activity.

Facebook

Customer Lifetime ___ is the total amount an existing customer will spend on an organization's products or services over that customer's lifetime

Value

According to research by Risk Based security, there were 2037 publicly reported data breaches in the first half of 2020.

True

According to this law, the government has the authority to prevent unfair or deceptive trade practices.

The Federal Trade Commission Section 5

This is a US law that governs personal information collected by financial institutions.

This is a US law that governs personal information collected by financial institutions.

This act regulates the gathering and use of credit reporting information.

Fair Credit Reporting Act

Which of the following is the correct formulas for calculating customer profitability?

Revenue earned from sales - Costs associated with sales and engagement

Select the true statements about the ethical considerations of selling customer data to third parties.

Organizations legitimately collect data from individuals for a variety of purposes including for CRM. While this information is legitimately collected, many organizations go on to sell this data to third parties who often use it for marketing and demographic analysis. Consider your favorite mobile app. Have you ever read the fine print before clicking the "I agree" button? Most people have never taken the time to read the fine print which often includes giving permission to the organization to use your data. In 2015 Facebook faced the Cambridge Analytica scandal in which the firm paid Facebook to acquire their users' personal data. It is estimated that over 87 million people were affected by this activity. As a result, many organizations (due to influence from regulatory agencies) are now more transparent about what kinds (if any) of data may be sold to third parties. Most consumers expect that the organization they share their personal data with will use it in ethical ways. However, data privacy and security are very difficult to control on the individual level. It is up to the organization to determine what types of data they will collect, how they will use this data, and to properly communicate these policies and procedures with the public

Organizations legitimately collect data from individuals for a variety of purposes including for CRM.

Many organizations sell consumer data to third parties who use the data for marketing and demographic analysis.

CRM data collection can be streamlined by using analytics to determine end-user needs. A better understanding of users' unique preferences and activities can help to guide data collection.

End-user Needs

CRM analytics can provide information about where data erosion occurs and how processes can be improved to minimize it.

Standardized Data Collection Processes

CRM analytics can provide insight into how customers and members of the organization interact with the CRM system. This can be used to encourage interaction and use.

Demonstrate the Value of CRM

CRM analytics can be used to test the viability of products or services. This viability check results from the analysis of consumption trends and usage behaviors.

Variability

Analytics around this data can provide insights about what features to include or improve in a new product or service.

Product/Service Measurements

CRM systems can be designed to capture data about why users are buying a product or service and how they are using it.

User Experience

CRM analytics often give insights that foster innovation. This information can be used by decision-makers to identify strong areas and potential growth areas.

Product Development

Analytics can provide insight into how customers and members of the organization interact with the customer relationship management ___ . This information can be used to design data collection strategies that encourage interaction and use.

System

According to Harvard Business School professor Clayton Christensen, there are over 30,000 new products introduced every year, and ____ % of these products fail

95

Select the true statements about how CRM market analytics improve the quality of customer data collection.

Analytics provided by CRM help to improve business processes and efficiencies.

CRM relies heavily on data that is collected from a variety of sources including point of sale, e-commerce, social media, and email marketing.

The quality of this data collected from various sources including point of sale and social media impacts the overall effectiveness of a CRM system.