SPC Customer Relationship Management 1 — Questions and Answers
Question 1: What is the primary goal of Customer Relationship Management (CRM) in a sales context?
- To automate invoicing
- To build long-term, profitable customer relationships (Correct answer)
- To reduce headcount in customer service
- To track competitor activity
Correct answer: To build long-term, profitable customer relationships
CRM focuses on cultivating long-term, mutually beneficial relationships with customers to drive loyalty and revenue.
Question 2: Which CRM activity best supports customer retention?
- Cold calling new leads daily
- Conducting regular post-sale follow-ups (Correct answer)
- Increasing product prices for loyal customers
- Reducing service touchpoints to cut costs
Correct answer: Conducting regular post-sale follow-ups
Post-sale follow-ups show customers they are valued and help identify issues before they cause churn.
Question 3: A sales professional identifies that a key account has not placed an order in 90 days. What is the best CRM response?
- Remove the account from the CRM
- Wait for the customer to reach out
- Proactively contact the customer to assess their needs and re-engage (Correct answer)
- Offer a steep discount immediately without context
Correct answer: Proactively contact the customer to assess their needs and re-engage
Proactive outreach for at-risk accounts allows the salesperson to identify unmet needs and prevent customer loss.
Question 4: What does the term 'customer lifetime value' (CLV) measure?
- The age of the customer's account
- The total revenue expected from a customer over the entire relationship (Correct answer)
- The number of products a customer has purchased
- The cost to acquire a new customer
Correct answer: The total revenue expected from a customer over the entire relationship
CLV estimates the total net profit a company can expect from a customer throughout the business relationship.
Question 5: Which practice best helps a sales professional personalize their approach using CRM data?
- Sending the same templated email to all contacts
- Reviewing purchase history and past interactions before each customer touchpoint (Correct answer)
- Ignoring previous notes to avoid bias
- Only tracking new prospects in the CRM
Correct answer: Reviewing purchase history and past interactions before each customer touchpoint
Reviewing CRM history before interactions enables tailored communication that resonates with each customer's specific context.
Question 6: What is 'upselling' in the context of customer relationship management?
- Encouraging a customer to switch to a competitor
- Persuading a customer to purchase a higher-end or upgraded version of their current product (Correct answer)
- Offering a refund to dissatisfied customers
- Removing add-ons from a customer's order
Correct answer: Persuading a customer to purchase a higher-end or upgraded version of their current product
Upselling involves recommending a premium version or enhancement that delivers greater value to the customer.
SPC Customer Relationship Management 1
What is the primary goal of Customer Relationship Management (CRM) in a sales context?