unit 3 retail trade questions answers
### 3.1 Customer Relationship Management (CRM)
**Q1: What is the primary goal of Customer Relationship Management (CRM)?**
**A1:** The primary goal of CRM is to improve business relationships by managing interactions and relationships with customers and potential customers.
**Q2: Name two benefits of using a CRM platform.**
**A2:** Two benefits of using a CRM platform are reliable reports and automation to enhance messaging.
**Q3: What are the five key stages in the CRM process cycle?**
**A3:** The five key stages in the CRM process cycle are:
1. Reaching potential customers
2. Customer acquisition
3. Conversion
4. Customer retention
5. Customer loyalty
### 3.1.4 E-CRM
**Q4: What is e-CRM?**
**A4:** E-CRM (Electronic Customer Relationship Management) involves integrating web channels into the overall CRM strategy to drive consistency across all channels in sales, customer service, and marketing.
### 3.1.5 Need for Improved Customer Relations
**Q5: Why is it important to inform customers when expectations are not met?**
**A5:** It is important to inform customers when expectations are not met to maintain transparency, offer solutions, and prevent losing customers to competitors.
### 3.2 Balancing Customer and Organizational Needs
**Q6: What should a retailer do to meet customer expectations?**
**A6:** A retailer should know their customers, understand their needs, and offer services that meet those needs.
### 3.3 Exceeding Customer Expectations
**Q7: How can a business exceed customer expectations?**
**A7:** A business can exceed customer expectations by personalizing interactions, speeding up problem-solving, and being proactive rather than reactive.
**Q8: Why is it important to identify alternative solutions for customers?**
**A8:** Identifying alternative solutions helps build customer trust, ensures customers are satisfied, and prevents them from leaving empty-handed.
### 3.4 Communicating and Responding Effectively
**Q9: What should a sales associate do if they cannot solve a customer’s problem due to lack of authority?**
**A9:** The sales associate should inform a higher authority like a sales manager and follow the organizational procedures for escalating the issue.
**Q10: Why should sales associates document steps taken to solve a customer problem?**
**A10:** Documenting the steps helps inform colleagues and managers, allowing them to handle similar problems more effectively in the future.
**Q11: How can a sales associate check if a customer is comfortable with the solution provided?**
**A11:** A sales associate can check the customer’s verbal and nonverbal responses, ask if they have any doubts, and convince them that the solution is in their favor.
**Q12: Why is it important to monitor changes in organizational policies?**
**A12:** Monitoring changes ensures they are implemented correctly and adjustments can be made if problems arise during implementation.
MCQ
### Section 3.1: Improve Communication and Customer Relationship Management (CRM)
**1. What is the primary goal of Customer Relationship Management (CRM)?**
- A) Reduce operational costs
- B) Improve business relationships
- C) Increase marketing campaigns
- D) Automate customer interactions
**Answer:** B) Improve business relationships
**2. Which of the following is NOT a benefit of a CRM platform?**
- A) Reliable reports
- B) Automation to enhance messaging
- C) Increasing product prices
- D) Simplifies collaboration
**Answer:** C) Increasing product prices
**3. What is the first step in the CRM process cycle?**
- A) Conversion
- B) Customer loyalty
- C) Reaching potential customers
- D) Customer retention
**Answer:** C) Reaching potential customers
**4. Which of the following is a characteristic of Electronic Customer Relationship Management (e-CRM)?**
- A) Customer contact initiated through fax
- B) System designed for internal use
- C) Browser is the customer's portal to eCRM
- D) Personalization requires programming changes
**Answer:** C) Browser is the customer's portal to eCRM
### Section 3.2: Balance the Needs Between Customer and Organisational Needs
**5. Which of the following is an essential element to keep a business growing according to section 3.2?**
- A) Offering discounts regularly
- B) Attending customers effectively and efficiently
- C) Increasing the product range
- D) Decreasing operational costs
**Answer:** B) Attending customers effectively and efficiently
**6. What is a suggested method for improving customer relationships mentioned in section 3.2?**
- A) Increase advertising spend
- B) Build trust and show transparency
- C) Reduce service offerings
- D) Automate customer interactions
**Answer:** B) Build trust and show transparency
### Section 3.3: Exceed Customer Expectations to Develop Relationships
**7. Which of the following is NOT a way to exceed customer satisfaction?**
- A) Speed up problem-solving services
- B) Use accurate time frames to meet customer demands
- C) Focus on the company’s profits
- D) Personalize customer interactions
**Answer:** C) Focus on the company’s profits
**8. What should a sales associate do after reaching a common solution with a customer?**
- A) Ignore the customer's feedback
- B) Start implementing the solution immediately
- C) Offer an additional discount
- D) Seek approval from higher management
**Answer:** B) Start implementing the solution immediately
### Section 3.4: Communicate and Respond Effectively to Customers in Retail Store/Mall
**9. What is a reason why customers might not complain about poor service?**
- A) They believe complaining will lead to quick resolution
- B) They find the process of complaining too time-consuming
- C) They are satisfied with the service
- D) The retailer encourages complaints
**Answer:** B) They find the process of complaining too time-consuming
**10. What should a sales associate do when solving a customer service problem that they are not authorized to handle?**
- A) Ignore the problem
- B) Attempt to solve it without authorization
- C) Inform the customer about the limitations
- D) Immediately contact a manager for assistance
**Answer:** D) Immediately contact a manager for assistance
**11. What is the final step a sales associate should take after solving a customer service problem?**
- A) Forget about the issue once it is resolved
- B) Inform managers and colleagues about the steps taken
- C) Avoid discussing the issue with other customers
- D) Demand a positive review from the customer
**Answer:** B) Inform managers and colleagues about the steps taken
**12. What should a sales associate do if they identify a repeated customer service problem?**
- A) Ignore it as it has been solved before
- B) Solve it without informing higher management
- C) Discuss it with colleagues and managers to find a solution
- D) Apologize and offer a refund immediately
**Answer:** C) Discuss it with colleagues and managers to find a solution
True or False:
True: "Customer Relationship Management (CRM) is a technology used to manage all relationships and interactions between your company and customers and potential customers."
True: "CRM systems help companies keep in touch with customers, streamline processes, and increase profitability."
False: "CRM systems are designed only for external use and do not assist with internal productivity."
True: "CRM systems can be used across departments to ensure that all customer service teams have the correct data to create an amazing customer experience."
True: "The CRM process includes five main stages: Reaching potential customers, Customer acquisition, Conversion, Customer retention, and Customer loyalty."
False: "E-CRM is exclusively focused on offline channels and traditional means of customer contact."
True: "E-CRM integrates Web channels into the overall enterprise CRM strategy to drive consistency across all channels."
True: "CRM systems require personalized views for different audiences, which are not always possible without programming changes."
False: "E-CRM systems cannot provide highly individualized and personalized views based on purchases and preferences."
True: "Effective communication is crucial for the smooth functioning of a business involving multiple stakeholders."
True: "Informing customers when expectations are not met is essential to prevent losing business."
False: "Negotiations in retailing are not important for establishing long-term relationships with customers."
True: "Exceeding customer expectations is a challenge but is necessary for attaining a high level of customer satisfaction."
True: "Identifying and offering alternative solutions is important in building customer trust and loyalty."
False: "Sales associates should solve all customer service problems, even those for which they lack sufficient authority."
True: "Organizational procedures for handling customer service problems should make it easy for customers to report complaints and ensure quick and fair resolution."
True: "Sales associates should keep customers informed about the status of actions taken to resolve their problems."
True: "It is important to check whether customers are comfortable with the solution provided to them."
True: "Sales associates should inform managers and colleagues about the steps taken to resolve customer service problems."
True: "Repeated customer service problems should be identified and rectified before they become larger issues."
False: "Monitoring changes in organizational policies and systems is unnecessary once they have been implemented."
True: "Customer satisfaction leads to customer loyalty, which is crucial for a retailer's long-term success."
Fill up the blank Exercise
Customer Relationship Management (CRM) is a technology used to manage all relationships and interactions between your company and __________ and potential customers.
(Answer: customers)
CRM systems help companies keep in touch with customers, streamline processes, and increase __________.
(Answer: profitability)
One of the key benefits of CRM is the ability to target different __________ and set scores and alerts based on individual prospects or customer activities.
(Answer: audiences)
The CRM cycle includes marketing, customer service, and sales activities and ideally leads to customer __________.
(Answer: loyalty)
Electronic Customer Relationship Management (e-CRM) integrates __________ channels into the overall enterprise CRM strategy.
(Answer: web)
CRM focuses on the relationship between the organization and __________ throughout their lifecycle.
(Answer: individuals)
A __________ CRM system is designed around the customer’s needs and is used for external purposes.
(Answer: e-CRM)
Effective communication is important for the smooth functioning of a business, especially in the __________ sector.
(Answer: retail)
If a customer’s expectations are not met, it is important to __________ effectively through phone, emails, or in person.
(Answer: communicate)
In retail, a service offer is something an organization does for its customers, over and above the regular services given as per the __________.
(Answer: policies)
One way to exceed customer expectations is to __________ customer interactions.
(Answer: personalize)
After implementing a solution, it is crucial to keep the customer informed about the __________ of the actions taken.
(Answer: status)
Sales associates should follow organizational __________ and procedures when dealing with customer service problems.
(Answer: policies)
Monitoring __________ after making changes to organizational policies is essential to ensure customer satisfaction.
(Answer: changes)
A satisfied customer may become __________ to the retailer.
(Answer: loyal)
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