ESB - Entrepreneurship and Small Business Customer Relationship Management Questions and Answers

Question 1

A small e-commerce startup wants to automatically send a follow-up email with a discount code to customers who add items to their cart but do not complete the purchase.
Which core function of a CRM system is specifically designed for this task?

Accepted Answer

Marketing Automation

Answer

Sales Forecasting

Answer

Customer Service Ticketing

Answer

Contact Management

Question 2

What is the primary strategic goal of implementing a Customer Relationship Management (CRM) system for a new small business?

Accepted Answer

To build and maintain long-term, profitable relationships with customers.

Answer

To generate financial reports and manage accounting tasks.

Answer

To replace the need for a dedicated sales team.

Answer

To exclusively manage employee schedules and payroll.

Question 3

Which of the following is a key benefit of a small business using a CRM system to centralize all customer information?

Accepted Answer

It creates a single, unified view of each customer, accessible across departments.

Answer

It guarantees a specific percentage increase in quarterly revenue.

Answer

It eliminates the need for any form of direct customer communication.

Answer

It automatically designs the company's marketing materials and logos.

Question 4

A new consulting firm wants to implement a CRM system with the main objective of breaking down information silos and ensuring that its sales, project management, and client support teams can all share customer information seamlessly. This approach BEST describes which type of CRM?

Accepted Answer

Collaborative CRM

Answer

Analytical CRM

Answer

Operational CRM

Answer

Strategic CRM

Question 5

An entrepreneur is reviewing key performance indicators (KPIs) to measure the effectiveness of their CRM strategy in fostering customer loyalty. Which of the following metrics most directly measures the rate at which customers are discontinuing their service or business with the company?

Accepted Answer

Customer Churn Rate

Answer

Customer Acquisition Cost (CAC)

Answer

Lead Conversion Rate

Answer

Average Deal Size

Question 6

A local bakery owner uses a notebook to keep track of regular customers, their birthdays, and their favorite types of bread. They use this information to offer personalized birthday discounts. This simple, manual system is a basic form of:

Accepted Answer

Customer Relationship Management

Answer

Financial Accounting

Answer

Supply Chain Management

Answer

Inventory Control System