Practice Test GeeksESB - Certified Entrepreneurship and Small Business Specialist Practice Test
← All ESB Flashcard Decks

Customer Relationship Management Flashcards

7 cards from real ESB practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Customer Relationship Management flashcards as text

  1. What is the primary goal of Customer Relationship Management (CRM) for a small business?

    Answer: Building and maintaining profitable long-term customer relationships

    CRM focuses on building long-term, profitable relationships with customers by understanding their needs and improving satisfaction.

  2. Which metric best measures how likely a customer is to recommend your business to others?

    Answer: Net Promoter Score (NPS)

    Net Promoter Score (NPS) asks customers how likely they are to recommend a business on a scale of 0–10, making it the standard loyalty and advocacy metric.

  3. A small business notices that 20% of its customers generate 80% of its revenue. This observation reflects which business principle?

    Answer: The Pareto Principle (80/20 Rule)

    The Pareto Principle states that roughly 80% of effects come from 20% of causes, commonly applied to show that a small segment of customers drives most revenue.

  4. What does 'customer lifetime value' (CLV) represent?

    Answer: The total revenue a customer generates over the entire relationship with the business

    CLV is the total net revenue a business can expect from a single customer account throughout the entire business relationship.

  5. Which of the following is a key advantage of using CRM software in a small business?

    Answer: It centralizes customer data for better communication and follow-up

    CRM software consolidates customer information in one place, enabling better tracking of interactions and more personalized follow-up.

  6. A customer who had a complaint resolved quickly and satisfactorily often becomes what type of customer?

    Answer: A highly loyal advocate

    Research shows that customers whose complaints are resolved promptly often develop stronger loyalty than customers who never had a problem, a phenomenon called the 'service recovery paradox.'

  7. Which strategy involves offering existing customers additional or complementary products to increase revenue per customer?

    Answer: Cross-selling

    Cross-selling encourages customers to purchase related or complementary products, increasing the average transaction value and deepening the customer relationship.