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Practices for Dealing with Customers

36 important questions on Practices for Dealing with Customers

What is one method of segmenting markets using CRM technology?

Segmenting markets based on demographic and behavioral characteristics.

What should be developed and understood to manage customer relationships?

Develop close relationships and understand moments of truth – every instance in which a customer comes in contact with an employee of the organization.

How does CRM technology help in tracking sales trends?

Tracking sales trends and advertising effectiveness by customer and market segment.

What are service standards?

Service standards are measurable performance levels or expectations that define the quality of customer contact.

What should be set and used in managing customer relationships?

Set and use service standards.

What does CRM technology identify and eliminate to avoid wasting resources?

Identifying and eliminated non-value-adding products that would waste resources as well as those products that better meet customers’ needs and provide increased value.

What is NPS claimed to correlate strongly with?

NPS is claimed to correlate strongly with market and revenue growth.

What should be managed in customer relationships?

Manage complaints.

What might service standards include?

Service standards might include technical standards such as response time (answering the telephone within two rings) or behavioral standards (using a customer’s name whenever possible).

How does CRM technology determine the focus of targeted marketing initiatives?

Identifying which customers should be the focus of targeted marketing initiatives with predicted high customer response rates.

What may customer satisfaction measures include?

Customer satisfaction measures may include product attributes such as product quality, performance, usability, and maintainability; service attributes such as attitude, service time, on-time delivery, exception handling, accountability, and technical support; image attributes such as reliability and price; and overall satisfaction measures.

What technology should be exploited in managing customer relationships?

Exploit CRM technology.

Why are customer-contact employees important in achieving service standards?

Customer-contact employees are particularly important in achieving service standards – Train them!

What does CRM technology forecast regarding customer behavior?

Forecasting customer retention (and defection) rates and providing feedback as to why customers leave a company.

What should be integrated into continuous improvement activities?

Integrate customer feedback into continuous improvement activities.

What are commonly used factors to measure customer loyalty and engagement?

Commonly used factors to measure customer loyalty and engagement are:

Overall satisfaction
Likelihood of a first-time purchaser to repurchase
Likelihood to recommend
Likelihood to continue purchasing the same products or services
Likelihood to purchase different products or services
Likelihood to increase frequency of purchasing
Likelihood to switch to a different provider

What scores are associated with loyal customers who will typically be repeat customers?

Scores of 9 or 10 are usually associated with loyal customers who will typically be repeat customers (“promoters”).

What type of customers should not be ignored in managing customer relationships?

Don’t ignore internal customers.

How does CRM technology improve product bundling?

Studying which goods and services are purchased together, leading to good ways to bundle them.

What can analysis uncover opportunities for?

Analysis can uncover opportunities for both new as well as improved goods and services.

What is the purpose of disseminating customer information?

Share information with employees
Provide data to product designers and service managers

What scores are associated with customers who are satisfied but may switch to competitors?

Scores of 7 or 8 are associated with customers who are satisfied but may switch to competitors (“passives”).

What does CRM technology study to enhance web characteristics?

Studying and predicting which web characteristics are most attractive to customers and how a web site might be improved.

What is the purpose of collecting the Voice of the Customer (VOC)?

The purpose of collecting the Voice of the Customer (VOC) is to understand how well products and services are meeting customer needs and how customers differ in expectations, as well as needed products and services.

What information should be collected for quality characteristics?

Collect information on both importance and performance levels for quality characteristics.

What scores represent unhappy customers who may spread negative comments?

Scores of 6 or below represent unhappy customers who may spread negative comments (“detractors”).

How does CRM technology streamline processes?

Streamlining processes around customers rather than traditional functions, resulting in improved flow of information and cycle times.

What is the first practice for dealing with customers?

Collect information constantly on customer expectations.

What methods are used to collect the Voice of the Customer (VOC)?

Methods used to collect the Voice of the Customer (VOC) include surveys, service evaluation cards, focus groups, listening to what customers say during transactions, internet and social media monitoring.

How is NPS calculated?

NPS is the difference in the percentage of promoters and detractors.

Why is listening to customers during transactions important?

Listening to customers during transactions is important, especially when they complain, to collect valuable feedback.

What should be done with the information collected on customer expectations?

Use this information to design, produce, and deliver the organization’s products and services.

How can employees and executives be engaged in collecting customer information?

Employees and executives can be engaged in collecting customer information through field intelligence.

What should be measured to understand customer interactions?

Measure customer satisfaction, loyalty and engagement.

What does assessing how well products and services meet customer needs involve?

Assessing how well products and services meet customer needs involves understanding how customers differ in expectations, as well as needed products and services.

What are some key aspects of managing customer relationships?

Set and use service standards
Management complaints
Exploit CRM technology
Don’t ignore internal customers

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Quality Management

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