Customer Relationship Management Flashcards

Which scenario best illustrates a transactional relationship rather than a relational one?

Answer: A cashier completes a sale with no conversation or follow-up

A transactional relationship focuses solely on the exchange with no effort to build a deeper connection.

How does effective complaint handling contribute to CRM?

Answer: It can convert dissatisfied customers into loyal advocates

Research shows that customers whose complaints are resolved effectively often become more loyal than those who never complained.

What is 'customer churn' in the context of CRM?

Answer: The rate at which customers stop doing business with a company

Churn rate measures how many customers are lost over a given period, a key indicator of relationship health.

A customer frequently buys running shoes. According to CRM best practices, what is the best follow-up action?

Answer: Notify them when new running shoe models or related accessories arrive

Personalized communication based on known preferences increases relevance and the likelihood of repeat purchase.

Which of the following is a key feature of a CRM database?

Answer: Tracks customer interactions, preferences, and purchase history

A CRM database centralizes customer information to help businesses manage and improve relationships.

What is the best way to build rapport with a new customer during their first visit?

Answer: Learn their name, listen actively, and show genuine interest in their needs

Active listening and personalizing the interaction from the first visit lays the foundation for a long-term relationship.

In CRM, what does 'touch point' refer to?

Answer: Any interaction between a customer and the business

Touch points include every channel or moment a customer interacts with a brand, from browsing to post-sale contact.