Question 1

An email message being incorrectly classified as spam and blocked is referred to as?
A) Negative positive blocking
B) False positive blocking
C) False negative blocking
D) Negative negative blocking

Accepted Answer

False positive blocking refers to the situation when a legitimate email message is being blocked and classified as spam by mistake. This happens when the spam filter algorithm wrongly identifies certain characteristics of the email as spam, leading to false positives.

Question 2

A company estimates that it retained 1,700 customers but lost 250 customers during a customer relationship program. What is the maintenance ratio?
A) 250/1700 = 0.15
B) 1700/(250 + 1700) = 0.87
C) 1700/250 = 6.8
D) 250/(250 + 1700) = 0.13

Accepted Answer

The answer of A company estimates that it retained 1,700...

Question 3

Targeted email campaigns are typically?
A) High cost and high response rate
B) High cost and low response rate
C) Low cost and high response rate
D) Low cost and low response rate

Accepted Answer

The answer of Targeted email campaigns are typically?
A) High cost...

Question 4

Response rate for consumer direct mail (as of 2010) was approximately?
A) 1%
B) 3%
C) 10%
D) 20%

Accepted Answer

According to a study by the Direct Marketing Association in 2010, the average response rate for consumer direct mail was approximately 3%.

Question 5

Marketing to a customer by sending materials to a potential customer's address is known as?
A) Telemarketing
B) Parcel marketing
C) Direct mail
D) Indirect mail

Accepted Answer

Direct mail is a marketing technique in which marketing materials, such as flyers, brochures, or catalogs, are sent directly to potential customers by mail. This method allows businesses to target specific demographics and can be personalized to the recipient, making it an effective and cost-efficient way to reach potential customers. Telemarketing involves making sales calls to potential customers, while parcel marketing and indirect mail are not commonly used marketing techniques.

Question 6

Which performance metric is incorrectly matched with its description?
A) Program return on investment = additional profit generated/program investment
B) Maintenance ratio = # customers retained/# customers lost
C) Customer loss rate = # of customers lost/# customers added
D) Conversion efficiency = # of new customers generated/program investment

Accepted Answer

The answer of Which performance metric is incorrectly matched with...

Question 7

Assembled groups of customers giving their opinions to company personnel regarding various proposed program initiatives are known as?
A) Open forums
B) Focus groups
C) Roundtables
D) Town halls

Accepted Answer

Assembled groups of customers giving their opinions to company personnel regarding various proposed program initiatives are known as focus groups.

Question 8

Most of a firm's profits being generated by a relatively small group of customers is referred to as the?
A) 90/10 rule
B) 80/20 rule
C) 70/30 rule
D) 50/50 rule

Accepted Answer

The 80/20 rule, also known as the Pareto Principle, states that 80% of a firm's profits are generated by 20% of their customers.

Question 9

Focus groups for proposed customer service program initiatives tend to be composed of?
A) Customers
B) Company employees
C) Suppliers
D) Auditors

Accepted Answer

Focus groups for proposed customer service program initiatives are composed of customers in order to receive feedback and input directly from those who will be utilizing the program.

Question 10

The 80/20 rule for customer profitability refers to what?
A) That most of a firm's customers are likely to be high profit customers
B) That most of a firm's efforts at retaining customers will be focused on a small group of customers
C) That most of a firm's profits are generated from a relatively small group of customers
D) That most of a firm's customers will complain about service at some point in time.

Accepted Answer

The 80/20 rule (also known as the Pareto Principle) states that 80% of a company's profits come from 20% of its customers. This means that a relatively small group of customers is responsible for generating the majority of a company's profits. This highlights the importance of focusing on these high-profit customers in order to maximize profitability.

Question 11

A small business owner has noticed that many of the marketing emails (for example, emails advertising an upcoming sale) are being labeled as spam by email services. This would likely be an example of?
A) Negative positive blocking
B) False negative blocking
C) False positive blocking
D) Negative negative blocking

Accepted Answer

False positive blocking occurs when legitimate emails are identified as spam and filtered out. In this case, the small business owner's marketing emails are being incorrectly labeled as spam by email services.

Question 12

Customer relationship initiatives will?
A) Remain largely static
B) Need to be revised
C) Need to be improved
D) Need to be revised and improved

Accepted Answer

Customer expectations and preferences are constantly changing, so customer relationship initiatives need to be regularly evaluated, revised and improved to ensure their effectiveness.

Question 13

Program ROI is determined by which of the following?
A) Additional profit generated/program investment
B) # of customers lost/total # of customers
C) # new customers generated/program investment
D) # of key customers/total # of customers

Accepted Answer

Program ROI (Return on Investment) is calculated by dividing the additional profit generated by the program by the program investment.

Question 14

Performance metrics for customer relationship initiatives should measure?
A) Customer satisfaction
B) Customer loyalty
C) Both customer satisfaction and customer loyalty
D) Neither customer satisfaction nor customer loyalty

Accepted Answer

Performance metrics for customer relationship initiatives should measure both customer satisfaction and customer loyalty, as they are interconnected and critical for the success of a business. Customer satisfaction measures how happy customers are with a company's products, services, and overall experience, while customer loyalty measures how likely they are to continue doing business with the company and recommend it to others. By tracking and improving both metrics, companies can increase customer retention, reduce churn, and drive revenue growth.

Question 15

The use of the telephone to identify potential new customers is referred to as?
A) Telemarketing
B) Telepresence
C) Telekinetics
D) Telebranding

Accepted Answer

Telemarketing is the practice of using the telephone to identify potential new customers by contacting them directly and promoting a product, service, or idea. This method is often used in sales and marketing campaigns to generate leads, make sales, or conduct market research.

Question 16

A direct mail campaign would likely be _______ than an email campaign.
A) Less expensive and less time consuming
B) Less expensive and more time consuming
C) More expensive and less time consuming
D) More expensive and more time consuming

Accepted Answer

Direct mail campaigns typically involve printing, postage, and physical distribution, making them more expensive and time-consuming compared to the digital nature of email campaigns.

Question 17

Delivery of target communications/marketing to customers that are a firm's worst (least profitable) should focus on?
A) Converting the customers to be more profitable
B) "Firing" the customers in a diplomatic way
C) Abruptly ending communication with the customers
D) Steering the customer to other in-house products and services

Accepted Answer

The answer of Delivery of target communications/marketing to customers that...

Question 18

If a company knows that it retained 1,700 customers but lost 250 customers, it would be able to calculate which customer relationship program performance metric?
A) Conversion efficiency
B) Customer loss rate
C) Senior management commitment
D) Maintenance ratio

Accepted Answer

The answer of If a company knows that it retained...

Question 19

Direct mail is often used for all of the following except?
A) Produce prospective customer leads
B) Sell to existing customers
C) Enhance customer relationships
D) Terminate relationships with bad customers

Accepted Answer

Direct mail is not typically used to terminate relationships with bad customers. It is more commonly used to generate leads, sell to existing customers, and enhance relationships with customers.

Question 20

Customer relationship initiatives for a firm's best customers should focus on?
A) Maintaining and cultivating the existing relationship
B) Attempting to increase sales of additional goods and services to these customers
C) Both maintaining and cultivating the existing relationship and attempting to increase sales of additional goods and services to these customers
D) Severing ties with the customers

Accepted Answer

Customer relationship initiatives for a firm's best customers should focus on both maintaining and cultivating the existing relationship and attempting to increase sales of additional goods and services to these customers. By maintaining and cultivating the existing relationship, the firm can ensure that the customers remain loyal and continue to do business with the firm. By attempting to increase sales of additional goods and services, the firm can maximize the revenue potential of these customers and increase their overall value to the firm. Severing ties with these customers would not be a good strategy, as they are the firm's best customers and are likely to be a significant source of revenue.

Quiz 5: Customer Relationships and Customer Service

An email message being incorrectly classified as spam and blocked is referred to as?

A company estimates that it retained 1,700 customers but lost 250 customers during a customer relationship program. What is the maintenance ratio?

Targeted email campaigns are typically?

Response rate for consumer direct mail (as of 2010) was approximately?

Marketing to a customer by sending materials to a potential customer's address is known as?

Which performance metric is incorrectly matched with its description?

Assembled groups of customers giving their opinions to company personnel regarding various proposed program initiatives are known as?

Most of a firm's profits being generated by a relatively small group of customers is referred to as the?

Focus groups for proposed customer service program initiatives tend to be composed of?

The 80/20 rule for customer profitability refers to what?

A small business owner has noticed that many of the marketing emails (for example, emails advertising an upcoming sale) are being labeled as spam by email services. This would likely be an example of?

Customer relationship initiatives will?

Program ROI is determined by which of the following?

Performance metrics for customer relationship initiatives should measure?

The use of the telephone to identify potential new customers is referred to as?

A direct mail campaign would likely be _______ than an email campaign.

Delivery of target communications/marketing to customers that are a firm's worst (least profitable) should focus on?

If a company knows that it retained 1,700 customers but lost 250 customers, it would be able to calculate which customer relationship program performance metric?

Direct mail is often used for all of the following except?

Customer relationship initiatives for a firm's best customers should focus on?