CSM Customer Relationship Management & Retention 3

Question 1

A sales manager wants to reduce customer churn by identifying at-risk accounts before renewal. Which CRM capability is MOST useful for this purpose?

Accepted Answer

Predictive churn scoring using behavioral data

Answer

Predictive churn scoring analyzes usage and engagement data to flag at-risk accounts so sales teams can intervene proactively.

Question 2

In the context of CRM, what does 'customer segmentation' allow a sales manager to do?

Accepted Answer

Tailor messaging and offers to specific groups based on shared characteristics

Answer

Segmentation groups customers by attributes such as industry, size, or behavior, enabling personalized and relevant communication.

Question 3

Which of the following best describes a 'land and expand' CRM strategy?

Accepted Answer

Closing a small initial deal and growing the account through upsells and cross-sells

Answer

Land and expand involves winning a modest initial contract, then growing account revenue by expanding usage or adding products over time.

Question 4

A sales manager is reviewing CRM data and finds that the top 20% of customers generate 80% of revenue. This observation reflects which principle?

Accepted Answer

The Pareto Principle

Answer

The Pareto Principle (80/20 rule) commonly applies in sales, where a small segment of customers drives the majority of revenue.

Question 5

Which action best demonstrates proactive CRM in a sales context?

Accepted Answer

Scheduling regular check-ins to review customer goals and usage health

Answer

Proactive CRM means anticipating customer needs and reaching out before issues arise, rather than reacting to problems.

(CSM) Certified Sales Manager Practice Test