Short Questions on Ch. 10
Customer Relationship Management
Q.1= what do you mean by Customer Relationship
Management?
The use of information technology to create a cross-functional enterprise
system that integrates and automates many of the customer-serving
processes in sales, marketing, and customer services that interact with a
company’s customers is called CRM.
Q.2= what do you mean by CRM Application Clusters?
There are five components of CRM Application Clusters.
Q.3= Define each component of CRM Application Clusters?
Contact and Account Management: CRM helps sales, marketing, and service
professionals to capture and track relevant data about every past and
planned contact with prospects and customers, as well as other business
and life cycle events of customers.
Sales: sales data needed to support and manage sales activities, and
optimize cross-selling and up-selling.
Marketing Fulfillment: A CRM system helps marketing professionals with
direct marketing campaigns by automating such tasks as qualifying leads for
targeted marketing, and scheduling and tracking direct marketing mailings.
Customer Service and Support: A CRM service provides service reps with
software tools and real-time access to the common customer database
shared by sales and marketing professionals.
Retention and Loyalty Programs: CRM helps a company to identify, reward,
and market to their most loyal and profitable customers.
Q.4= what do you know about the phases of CRM?
There are three phases of CRM: 1. Acquire: new customers by doing a
superior job. 2. Enhance: relationship with customer by supporting superior
service 3. Retain: and expand business with customers by proactively
identifying and rewarding the most loyal and profitable customers
Q.5= Discuss different benefits of CRM?
Through CRM, we can:
 Increase revenue by manage resources
 Identify and target best customers
 Real-time customization and personalization of products and services
 Track when and how a customer contacts the company
 Provide a previous customer experiences
 Provide superior services and support across all customer contact
points
Q.6= Discuss different Failures of CRM?
Failures of CRM are these:
 Lack of understanding and preparation
 Business benefits of CRM are not guaranteed
 Not solving business process problems first
 Lack of collaboration and visibility
Q.7= Define Trends in CRM?
There are 3 trends in CRM: 1.Operational CRM 2.Analytical CRM
3.Collaborative CRM.
Q.8= Define Operational CRM?
Operational CRM supports customer interaction with greater convenience
through a variety of channels. It also makes your company easier to do
business with.
Q.9= Define Analytical CRM?
Analytical CRM provides in-depth customer history, preferences, and
profitability information and allows you to analyze, predict, and derive
customer value and behavior and forecast demand.
Q.10= Define Collaborative CRM?
Collaborative CRM enables easy collaboration with customers, suppliers,
and partners and Improves efficiency and integration throughout the supply
chain.