Customer Relationship Management Flashcards

A customer returns to your store frequently but never makes a purchase. Which CRM strategy is most appropriate?

Answer: Engage the customer to identify barriers preventing purchase

Engaging repeat browsers helps uncover objections or needs, turning prospects into buyers.

Which metric best measures the long-term value of a customer relationship?

Answer: Customer lifetime value (CLV)

Customer lifetime value projects the total revenue a business can expect from a single customer over time.

A loyal customer mentions they found a competitor offering a lower price. What is the best CRM response?

Answer: Acknowledge their concern, highlight your unique value, and explore options

Addressing price objections by emphasizing unique value reinforces the relationship beyond just price.

What does 'customer segmentation' mean in CRM?

Answer: Dividing customers into groups based on shared characteristics

Segmentation groups customers by traits like behavior or demographics to deliver more targeted service.

Which behavior demonstrates proactive CRM in a retail setting?

Answer: Contacting customers after a purchase to ensure satisfaction

Proactive follow-up after purchase shows genuine care and helps catch dissatisfaction early.

A CRM system shows a customer has not purchased in 90 days. What action should a sales associate take?

Answer: Send a personalized re-engagement message or offer

Re-engagement outreach with personalization can win back lapsed customers before they are permanently lost.

What is the primary purpose of tracking customer purchase history in a CRM system?

Answer: To personalize future recommendations and improve service

Purchase history enables associates to make relevant suggestions and anticipate customer needs.