Answer Key 2

1. As software CRM can process sales transactions very effectively. Elaborate with the help of
suitable example.
a. Example can be:
i. Quotation to Payment cycle
ii. Sales and territory management
iii. Campaign management
iv. Customer service automation etc
2. Which type of companies can benefit most from CRM? Why
a. Companies serving large numbers of customers through complex and frequent
interactions:
b. Communications companies
c. Retail banks
d. Insurance companies
e. Healthcare organizations
f. Utilities
g. Companies with a steep skew
h. Companies in lost for good markets
3. Choosing CRM is a decision based upon three factors: Deployment options, Business Contexts
and IT Contexts. Explain with example the Deployment Options.
a. On Premise installation
b. On premise vendor managed
c. Multi tenancy SaaS
d. Single tenancy SaaS
e. Hybrid deployment
4. What is Customer Life Time Value? Why is this good parameter in Relationship Management?
a. Amount of money a customer spends while doing business with a firm in his entire
lifetime as the firms customer. It may also include money spent by his referrals.
b. CLTV in quantitative terms is defined as the net present value(NPV) of the future profits
to be received from a given no. of newly acquired or existing customers during a
specified time frame.
c. Some customers have low LTV so org. may not want to reestablish relationships with
those who demand too much service without corresponding amt of revenue.
5. What analytical parameters can be used to measure the impact of CRM?
a. ROI
b. Sales opportunities closed
c. Prediction accuracy
d. The capability to track major sales events
e. It is easy to see how sales leaders are using CRM and gaining prominence in their
organizations
6. What are dashboards? Explain any one of the dashlets with suitable example.

a. The dashboard also provides management with key performance metrics to evaluate a
salespersons performance individually, within their peer group, and across the
company.
i. Sales volume, which can be expressed in units, dollars (or local currency)
ii. Open Deals- Top Five sales opportunities (for example)
iii. Sales Leads - Source of prospect by quantity
iv. Key Account A review of sales by key account
v. Open Cases A review of customer service issues and resolutions
vi. Pipeline A forecast of upcoming sales by type, by month
vii. Sales Activity a review of sales activity by source
7. What are customer touch points in the context of CRM. Explain with suitable examples.
a. Points within an organization where seller and buyer interaction occurs
b. Happen daily in the sales and customer service functions of a business
c. Happen less frequently in accounting, R&D, supply chain management, and marketing
d. This activity is essential to record within a CRM system for the customer management
purposes