Customer Relationship Management
Section A
Q1. Explain how the customer service feedback is sought by the retail firms. What are the emerging trends of CRM in the organized retail?
Q2. Explain the CRM process in retail. Do you feel that well planned CRM process is necessary for a retail firm to meet and beat competition? Justify your answer with your arguments.
Q3. Elaborate the philosophy of CRM practiced in retail business. Support your answer with relevant example.
Q4. Develop a CRM program for the organized retail format BIGBAZAAR and how you will suggest them to implement the program?
Q5. Describe the rationale and benefits of CRM in organised retail. How it differs from the CRM process adopted by traditional retail?
Section - B
Case STUDY
"Customer Service: The Nordstrom Way"
The Nordstrom store is known for its exceptional customer service. It is customer service that makes Nordstrom so special. The Nordstrom store differentiates and distinguishes itself from competition through excellent customer service. Customer service is said to be the culture at Nordstrom and the organization has emerged as a world wide example for customer service at retail.
The Nordstrom store targets middle to upper income women and men offering merchandise categories like shoes, apparent, accessories, cosmetics etc. at competitive prices. The chain can boost of a highly motivated," self-empowered people who have an entrepreneurial spirit, who feel that they are in this to better them and feel good about themselves, to make more money and to be successful."
To cite an example of customer service at Nordstrom: There was a customer who fell in love with a pair of burgundy, pleated, Donna Karan slacks that had just gone on sale at a Nordstrom store, but the store was out of her size and the sales associate was not able to locate a pair at any other Nordstrom store in the area. Knowing that the same slacks were available with a competitor across the street, the associate secured some petty cash from the department manager, walked across to the competing department store where she bought the slacks at full price, returned to Nordstrom and then sold them to the customer at the marked-down Nordstrom price. The culture of Nordstrom is to delight every customer. Though Nordstrom did not make money on that sale it was an investment in promoting the loyalty of an appreciative customer, who would definitely make a repeat purchase from the store.
Questions
1. Why is customer service important to a store?
2. How can a retail store make service its culture? What arte the lessons of a customer service we can learn from Nordstrom?
Section C
Q1: From the customer's perspective ______ is the perception of the shopper to draw benefits from a purchase (formed by the total retail experience).
Value
CRM
Brand loyalty
Delight stage
Q2: This is not one of the four factors to be kept in mind in relationship retailing
Customer base
Customer service
Customer satisfaction and loyalty programs
Employee empowerment
Q3: It is more worth nurturing relationships with some shoppers than with others; they are termed as________ and they should be singled out.
Consumer cooperatives
Consumerism
Core customers
Buyer
Q4: Courtesy (referring to the customer by name and saying thank you) and suggestion selling is termed as _________ in the classification of customer services. They are the low cost services and value high for the shopper.
Patronage builders
Patronage solidifiers
Disappointers
Basics
Q5: High cost of offering the customer service and high value of the customer service to the shopper, for e.g.: transaction speed, credit, gift registry etc. is being termed as ____________.
Patronage builders
Patronage solidifiers
Disappointers
Basics
Q6: An upscale retailer would offer _____ customer services than a discount store
Less
More
Average
Equal
Q7: One of the following is not the goal of customer service process flow:
Dependability
Responsiveness
Authority
Perish ability
Q8: Developing an effective ____________ for the whole organization also helps the retail firm to operate a lot more efficiently.
Customer lobby and customer interaction
Competitor's employee network
Training and development plan
Customer screening
Q9: When customer service is less than the expectations, the service rendered by the retail firm is________.
Poor
Good
Fair
Neither good nor poor
Q10: Customer service in retailing focuses on ______________.
Customer paying capacity
Customer expectations
Customer profile
Customer desire
Q11: This is not the set of service standards used by the retailer for his customer.
Right strategy
Right systems and people
Right processes and people to deliver them
Service rendered as per the disposable income of the customer
Q12: Good services mean offering customers____________.
Offering service to customers as per their profile
Offering service equal to the price of goods/service
Offering service more than what is expected
Offering the product with best features and forget after that
Q13: This is not one of the classification of customer expectations:
Basic and expected
Customer profile
Desired
Unanticipated
Q14: . __________ is absolutely essential attributes of the experience.
Basic customer expectations
Expected customer expectations
Desired customer expectations
Unanticipated customer expectations
Q15: __________ are the attributes the customer doesn't expect, but knows about them and appreciates it if the experience includes them.
Basic customer expectations
Expected customer expectations
Desired customer expectations
Unanticipated customer expectations
Q16: __________ is the 'surprise' attributes that add value for the customer beyond his or her desires or expectations.
Basic customer expectations
. Expected customer expectations
Desired customer expectations
Unanticipated customer expectations
Q17: Communicating the organization's ___________ to the employees work wonders.
Vision, values, plans and strategies
Financial condition and product portfolio
Internal secrets and competitors profile
Resource constraints and competitors profile
Q18: Some retailers use _________ to evaluate the service quality performance
Sales persons
Mystery shoppers
Financial institutions
Govt. support
Q19: This is not one of the parameters the retailers do for analyzing its organizational assessment of the service and culture:
Value delivered to the customer
The internal effectiveness of the organisation
Quality of work life of employees
Financial status of the firm
Q20: The retailer needs to monitor and measure service quality of:
Only the frontline sales person within the store`
All departments/ functions, both at the front and back ends
The HR and sales deptt.
The sales deptt. only
Q21: Customer expectations keep _____.It's the retail organisation's responsibility to achieve higher levels of customer satisfaction.
Lowering
Rising
Balancing
None of these
Q22: Customer service has the dimensions:
The services (facilities, concessions or infrastructure offerings)
Service offered by the store
Both (a) and (b)
Finance available with target customers
Q23: ____________ are the associated attributes of the experience that the customer takes for granted.
Basic customer expectations
Expected customer expectations
Desired customer expectations
Unanticipated customer expectations
Q24: Researches have proven this fact that it costs 3 to 6 times more to sell product and services to_______ than to __________.
new customers , existing customers
existing customers , new customers
loyal customers , new customers
new customers , loyal customers
Q25: CRM is an iterative process that turns _______ into ________.
customer loyalty, customer data
customer data , customer loyalty
customer emotions , customer data
customer liability, customer data
Q26: This is not one of the 4 activities of the CRM PROCESS CYCLE:
Analyzing customer data and identifying target customers
Developing CRM programs
Collecting customer data
Arranging frequent customer get-togethers
Q27: Ideally, the database should not contain the following information:
Transactions
Customer preferences
Responses to marketing activity
Privacy and secret details of the customer
Q28: One of the following sentences on customer loyalty to a retailer is not true:
Customers are committed to purchase merchandise/ services
Resist the activities of competitors attempting to attract the customers
Customers have a bond with the retailer
Customer provide secret information of friends and relatives
Q29: Three approaches that store-based retailers generally use to overcome the problem of identifying most customers who are making in-store transactions. The following is not the right approach:
Controlling the privacy concerns of the customers
Connecting internet purchasing data with the stores
Offering frequent shopper cards
Asking customers for their identifying information
Q30: . _________ is a specific type of data analysis that focuses on the composition of the bundle of products purchased by a household during a single shopping occasion.
RFM Analysis
LTV scores
Market basket analysis
customer pyramid
Q31: A commonly used measure to score each customer is ________.It is the expected contribution from the customer to the retailer's profits over his or her entire relationship with the retailer.
RFM Analysis
Life time value
Market basket analysis
Customer pyramid
Q32: Retailers know that a relatively small number of customers account for the majority of their profits. This realization is often called the _________.80% of the sales or profits come from 20 percent of the customers.
20-80 rule
80-20 rule
40-60 rule
60-40 rule
Q33: A commonly used segmentation scheme divides customers into four segments. The incorrect segmentation is:
Silver segment
Platinum segment
Iron segment
Gold segment
Q34: Customers in the lowest segment of customer pyramid can cost the company money. They often demand a lot of attention but do not buy much from the retailer.
Iron segment
Platinum segment
Lead segment
(a) and (c) both
Q35: This segment is composed of the retailer's customers with the top 25 percent LTVs. These are the most loyal customers who are not overly concerned about merchandise price and place more value on customer service.
Silver segment
Platinum segment
Iron segment
Gold segment
Q36: Customers in this third tier probably do not deserve much attention from the retailer due to their modest LTV.
Silver segment
Platinum segment
Iron segment
Gold segment
Q37: . _________ is the least profitable customers in the customer pyramid.
Lead segment
Platinum segment
Iron segment
Gold segment
Q38: ________are the most profitable customers in the customer pyramid.
Lead segment
platinum segment
Iron segment
Gold segment
Q39: ________ often used by catalog retailers and direct marketers.
RFM Analysis
Life time value
Market basket analysis
Customer pyramid
Q40: RFM analysis stands for_____,
recency, frequency, monetary
requirement, fulfillment, monetary
recency, freebees ,monitoring
repetition, frequency , momentary