Customer Relationship Management & Ethics Flashcards

Which metric estimates the total net revenue a business can expect from a single customer over the entire relationship?

Answer: Customer Lifetime Value

Customer Lifetime Value (CLV) projects the total value a customer brings over the full relationship.

A representative updates a customer's CRM record after every call with the reason for contact and the outcome. What is the main benefit of this practice?

Answer: It lets any future agent see the full history and avoid making the customer repeat themselves

Complete, accurate interaction notes give the next agent context and create a seamless customer experience.

Which customer is most likely to be classified as 'at risk' in a CRM churn model?

Answer: A long-time customer whose purchase frequency has dropped sharply and who filed two unresolved complaints

Declining engagement combined with unresolved complaints are classic churn warning signals.

Net Promoter Score (NPS) is calculated by:

Answer: Subtracting the percentage of detractors (0-6) from the percentage of promoters (9-10)

NPS equals % promoters (9-10) minus % detractors (0-6) on the 0-10 likelihood-to-recommend question.

What does 'customer segmentation' in CRM primarily allow a company to do?

Answer: Group customers by shared traits so service and offers can be tailored

Segmentation divides customers into meaningful groups so communication and service can be personalized.

Which approach best reflects relationship-focused service rather than transaction-focused service?

Answer: Following up after a resolved issue to confirm the customer is satisfied

Proactive follow-up shows ongoing care and builds long-term trust beyond the single transaction.

Duplicate customer records in a CRM most commonly cause which problem?

Answer: Fragmented history, leading agents to miss prior interactions or send conflicting messages

Duplicates split a customer's history across records, so agents lack a complete, single view of the customer.