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insurance companies, and others; two of these are described in detail in this book. These applications are an exception to the general rule about data warehouses. NCR has succeeded where most other CRM developers have failed.
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Mass marketing for certain products and services Building a customer and prospect database and using it to market to customer segments for certain products and services Having your products available in retail locations that are convenient for your customers Communicating with customers to maintain their loyalty; sending them emails, thanking them for their patronage, and getting them to ll out customer preference pro les
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Giant CRM multimillion-dollar data warehouses designed to produce one-to-one marketing. Million-dollar software that is designed to make the right offer to the right customer at the right time. One-to-one marketing, except in certain limited situations. Changing a company so that it is customer-focused instead of product-focused. It s a nice idea, but no one has ever done it, and no one ever will.
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1. Which is not a basic assumption of CRM a. A warehouse permits a rm to make the right offer to the right customer at the right time. b. A data warehouse is essential to marketing success.
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c. One-to-one marketing is achievable. d. Companies can become customer-focused. e. Increased employee loyalty is essential to increased customer retention. The formula for the discount rate includes all but which of the following: a. The waiting time b. The market rate of interest c. The marketing costs d. The risk factor e. The years to wait Which of the following is not given in the chapter as a reason why CRM is a failure a. CRM software is not available today. b. The data to predict customers purchasing behavior are lacking. c. Data warehouses are very expensive. d. Companies cannot become customer-focused. e. The Loyalty Effect does not support CRM. Turn the following paragraph into English: Enterprises struggling with lack of coordination across departments should consider the needs of individual groups and work on a top-down/bottom-up strategy. Because department-level CRM deployments may be more cost-effectively supported by a Tier 2 system integrator with domain-speci c skill sets and software relationships, the enterprise should identify a master list of approved smaller service providers to work on individual projects. What does the National Retail Federation s CRM Conference survey of North American retail companies estimate the CRM failure rate to be Nearly a. 80 percent b. 70 percent c. 60 percent d. 50 percent e. 40 percent
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6. Which of the following was not listed in the chapter as a recommendation by Frederick Reichheld in The Loyalty Effect a. Improve employee loyalty b. Build a data warehouse c. Recruit the right sort of customers to begin with d. Change the commission system e. Increase the customer retention rate 7. What does NPV stand for a. Not previously viewed b. Net present value c. The rate of pro ts from an enterprise d. The cumulative pro ts expected in the future e. The discount rate 8. What does it mean to say that database marketing and CRM produce only incremental results a. They don t work. b. They don t work very well. c. The basic product sales are produced by other channels. d. A 5 percent increase in the retention rate produces a 95 percent increase in pro ts. e. None of the above. 9. Why will most companies never become customer-focused a. Because companies are designed for customer acquisition b. Because Reichheld said it cannot work c. Because companies want to see that individual products succeed d. Because the compensation system cannot be changed e. Because of test and control groups 10. What does the book suggest as the best way to attract customers to Red Lobster a. Database marketing b. CRM c. Mass marketing d. Certi cates e. None of the above
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