Answer Schema

Subject Name With Code

MBA 647 Customer Relationship
Management
Date
2nd April 2016
Time
9 AM -12 PM

1.

Degree & Branch

MBA
Maximum
m
ar
ks

100

PART A (1 x 20 =20 Marks)

Case Study Compulsory

1a. At this juncture, analyze with an illustrative model as to how a global computer software
company can practice mass customization and create competitive advantage?

(K4 -10)

Suggested model that includes: (10 marks)

Introduction of agile product development

Develop flexible processes

Develop a broad portfolio of niche products

Modify/assemble/ build products to order

Adoption of production to variations on a theme

Develop modular product architecture

1b. Appraise and justify how can Customer relationship Management (CRM) be an enabling factor
to derive full benefits of mass customization?

(10 marks)

(K5-10)

Introduce, Develop and execute the model of B2B2C. The student should be able to connect
the relevance of E Commerce to adapt to the requirement of Mass customization

PART B (10 x 2 = 20 Marks)

Answer All Questions
2. Outline the difference between Operational CRM and Analytical CRM

(K2)

Operational CRM is, in simplest terms, the business operations connected to building
and managing CRM in a company. It includes operation of such functions as sales
force automation and call centers.

Analytical CRM describes the component of CRM that relates to data mining and
interpretation of data collected about customers.

3. Define the concept of Zone of Tolerance

(K1)

The distance between the adequate and the desired levels is known as the 'zone of
tolerance'

4. Compare Customer Defection and Customer Attrition

(K2)

Customer defection is the enhancement of customer dissatisfaction and declining

loyalty towards a particular service or on organization

Customer attrition is the result of customer defection is the loss of clients or

customers.

5. Explain the concept of Expectation analysis in the field of CRM?

(K2)

Customer expectations analysis is the evaluation of beliefs about service delivery that
serve as standards or reference points against which performance is judged.

6. Identify the functions of a Key account Manager with examples

(K3)

Works for a company and is responsible for the management of sales, and relationships
with particular customers.

Maintains the company's existing relationships with a client or group of clients, so that
they will continue using the company for business.

They manage the relationship with the client of the account(s) they are assigned to.

Serve as the interface between the customer service and the sales team in a company.

create long term relationships with the portfolio of assigned clients.

7. Explain the significance of Customer Life time value

(K2)

Customer lifetime value (CLV) (or often CLTV), lifetime customer value (LCV), or
life-time value (LTV) is a prediction of the net profit attributed to the entire future
relationship with a customer.

8. Contrast Sales Force Automation from Field Force Automation

(K2)

SFA is software to support sales reps. The software gives sales representatives access to
contact details, appointments, sales opportunities, customer purchase history, order
management etc.
FFA refers to the use of technology to capture field sales or service information in real time.
This involves use of technology, typically handheld PDAs, wireless devices, tablet PCs or
mobile phones to capture data.
9. Define a Learning Organization

(K1)

A learning organization is the business term given to a company that facilitates the
learning of its members and continuously transforms itself.

10. List any three global software packages used for effective CRM

Oracle Siebel, CRM on demand, Fusion CRM

SAP

Sales Force

Microsoft Dynamics CRM

Sugar CRM

11. What is EDI?

(K1)

(K1)

Electronic Data Interchange (EDI) is the electronic interchange of business

information using a standardized format; a process which allows one company to send
information to another company electronically rather than with paper.
PART C (4x 15 = 60 Marks)
Internal Choice
Note: Answers for 5 marks questions should not exceed beyond 1 page
Answers for 10marks should not exceed beyond 3 pages

12ai. Summarize how Relationship approach supports as an effective CRM tool (K2 - 5)

The shift in business focus from transactional marketing to relationship marketing.

Customers are a business asset and not simply a commercial audience.

The transition in structuring organizations, from functions to processes.

Benefits of using information proactively rather than solely reactively.

The greater utilization of technology and maximizing the value of information.

Trade-off between delivering and extracting customer value.

The development of one-to-one marketing approaches.

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ii. Distinguish with illustrations between Product centric and Customer centric
organizations

(K4 -10)

(OR)
12bi. Classify the functions of a CRM Manager

(K2 - 5)

Ensure outstanding customer satisfaction by maintaining strong working relationships.

deliver products/services that meet or exceed the customer requirements.

.Assist sales team in business acquisitions, planning, retention and management.

Maintain complete and accurate customer correspondence data.

Develop and update client related reports.

Managing client relationships to build a reputation for excellent service and generate
repeat business.

Identify and develop problem solving methodologies to resolve customer issues.

4

ii. Examine the effectiveness of a CRM model for a newly proposed multi specialty
hospital

in your locality

(K4-10)

(Illustration with explanation required)

13ai. The major challenge of modern business class hotels across the globe is how to manage
customer defection and attrition. Outline the various operational reasons as to why
customers defect such organizations

(K2 5)

Changing tastes and preferences

Customer dissatisfied with product

Customer lured away by competition

Customer influenced by friends

Promises undelivered

Customers have moved out from the locality

ii. K.M. Multi specialty is undergoing a crisis. The segment of celebrated physicians who
have been serving for a long tenure and the patient community who have acclaimed
patronage is found to be declining. You are approached as a consultant to resolve the
issue. Analyze the issues and suggest solutions to retain both the internal and external
customers.

(K4-10)

Reducing attrition

Tracking sales/customer again and again

Re contacting and reminding customers

Emotional contact with customers

Extraordinary customer service

Product and service integrity

Measure Life time value

Redress Complaints carefully and legibally

Others Blogs, CRM systems, Loyalty programs, Personal touches, Premiums and
gifts, Periodical questionnaire and surveys , social media etc.,
(OR)

13bi. Summarize the profile of a) B2C customer b) B2B customer

B2C
Product driven
Maximize the value of transaction
Large target market
Single step buying process
Shorter sales cycle
merchandising and POP activities
Emotional buying decision

(K2 5)
B2B

Relationship driven
Maximize the value of relationship
Small focused target market
Multi step buying process
Longer sales cycle
Educational and awareness building activities
Rational buying decision

bii The success factor of business is to fulfill the expectations of the customers effectively.
With the help of a check list pertaining to customer expectations, test a CRM model
for a newly initiated website to provide pilgrimage services to important shrines across
India.

(K4-10)

(Refer to the answer of 12 b.ii. Evaluate accordingly to the understanding level of

Students)

14ai. Explain Sales force automation and how it is carried out by an organization. (K2 - 5)

Sales force automation (SFA) software is a type of program that automates business
tasks such as inventory control, sales processing, and tracking of customer
interactions, as well as analyzing sales forecasts and performance.

SFA packages typically include a Web-ready database, an e-mail package, and

customizable template s. A three-tiered architecture is typically used to separate the
database, server, and application to reduce programming demands on clients.

ii. Of recent times customer analytics have played a significant role in enhancing the profit
and revenue for a business organization. Develop a measurable Customer Lifetime
Value model for a hi- tech super market which concentrates on exclusive women
apparel in Chennai ?

(K6- 10)

Customer lifetime value as the present value of the expected benefits (e.g., gross
margin) less the burdens (e.g., direct costs of servicing and communicating) from
customers.

CLV as the sum of cumulated cash flowsdiscounted using the weighted average cost
of capitalof a customer over his or her entire lifetime with the firm.

a profitable customer as a person, household, or company whore revenues over time

exceed, by an acceptable amount, the company costs of attracting, selling, and
servicing that customer.
Model of CLV:

(OR)
14bi. Summarize the functions of a Call center

(K2 - 5)

Answer courteously inbound calls and Respond to customer inquiries

Generate customer interest in the services or products offered by the company.

Provide personalized customer service by responding to the needs of the customers.

Ensure feedback from the customer to further improve the customer services.

Manage and update customer databases with the status of each customer.

Provide customers with brochures and information packages on products or services.

Build customer loyalty by follow-up of customer calls.

Evaluate problems of the customers and provide logical lasting solutions.

Manage filing, mailing, correspondence and other management tasks.

ii. Complaint Management and grievance redressal are the key domain areas which
determines the success of customer interaction. Develop a complaint management
process for a passenger car service center renowned showroom in Coimbatore.
(K6, 10)

15ai. Compare and contrast between Customer facing applications and Customer
touching applications.

(K2-5)

Customer-facing CRM applications are those applications where an organizations sales,

field service, and customer interaction center representatives interact directly with customers.
These applications include customer service and support, sales force automation, marketing,
and campaign management.

Customers interact directly with customer-touching CRM applications or electronic CRM

(e-CRM) applications. Customer-touching applications replace technologies or applications
that allow the customer to directly interact with a company representative as is the case with
customer-facing applications. Using these applications, customers typically are able to help
themselves.

ii. CRM can be effectively operationalized through Content Management and Campaign
Management practices. Develop a content management and campaign management
model for a newly proposed unisex health spa in your city

(K6- 10)

Content Management System. is used in the context of a web site creation. In other words
the web designer creates a framework website with graphics and banners. When a visitor to
the website selects a page the text is pulled from the CMS and appears on their screen.
Campaign Management System. It is the process to promote the business and improve sales
with targeted marketing campaigns. It creates activities for each campaign and assigns them
to different team members. It helps to track customer response and costs for each campaign.
It also enable to follow step-by-step guide to get started with your marketing campaigns.
(OR)
15bi. Compare and contrast Data warehousing and Data Mining.

(K2- 5)

Data mining is a method for comparing large amounts of data for the purpose of
finding patterns. Data mining is normally used for models and forecasting. Data
mining is the process of correlations, patterns by shifting through large data
repositories using pattern recognition techniques.

Data warehousing is the central repository for the data of several business systems in
an enterprise. Data from various resources extracted and organized in the data
warehouse selectively for analysis and accessibility.

ii. Develop an E-CRM model of a E-retail store which targets to sell customized game
consoles and on demand apps for young hedonist adults who can be reached across the subcontinent.

(K4, 10)

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