Page 102 - DMGT510_SERVICES_MARKETING

Unit 5: Customer Relationship Management in Services

5.9 Review Questions Notes

1. “CRM is a business strategy that goes beyond increasing transaction volume.” Comment

2. Key to a successful CRM is right segmentation and customer delight. Do you agree? Give
reasons and examples to support your answers.
3. “It is far cheaper to retain and satisfy one’s current customers than to acquire new ones.”
Why?
4. “Customer-relationship analytics helps companies make sense of customer needs, help
companies manage these relationships more intelligently and help predict the future.”
Discuss
5. How does CRM analytics help in effective differentiation? What is the concept of Lifetime
Value of a customer?
6. What are the major drivers for the tourism industry to go in for CRM system?
7. Devise a plan to develop a CRM system for a retail store.

8. How would a ‘Know Your Customer’ strategy work for a banking firm?
9. Describe the CRM business cycle.
10. Calculate the Lifetime Value:
Average Sale: ` 3400

No. of repeat purchases in a year: 5
Expected length of customer stay: 18 months
Average Profit Margin: 18%
Acquisition Cost: ` 700

Answers: Self Assessment

1. True 2. False
3. True 4. Service value
5. Employee loyalty 6. Cheaper
7. b 8. d
9. a 10. False

11. True 12. True
13. b 14. c
15. Fixed 16. Average profit %

5.10 Further Readings

Books C Bhattacharjee, Services Marketing, Excel Books, New Delhi
Christopher H Lovelock, Services Marketing, Third Edition, Prentice Hall, US

Leonard L Berry, Great Service: A Framework for Action, the Free Press

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