Question

Select the four basic criteria a company can use to judge the effectiveness of its CRM program. (Check all that apply.)

a-Share of customer
b-Customer equity
c-Customer focus
d-Lifetime value
e-sales personnel
f-data mining

Answer 1

The effectiveness of a CRM program can be judged by the Share of customer, Customer equity, Customer focus, and Lifetime value, which are metrics that gauge customer loyalty, profitability, alignment with customer needs, and long-term financial contribution.

Step-by-step explanation:

The four basic criteria a company can use to judge the effectiveness of its Customer Relationship Management (CRM) program are:

1. Share of customer: Measures the proportion of a customer's purchases that are made from the company, compared to competitors.
2. Customer equity: Represents the total combined customer lifetime values of all of the company's customers.
3. Customer focus: Indicates how well the company is attuned to the needs and preferences of its customers.
4. Lifetime value: Refers to the total amount of money a customer is expected to spend on a company's products or services over the entirety of their relationship.

These criteria are important for determining how well a CRM program is performing in maintaining and enhancing customer relationships, which ultimately contribute to the company's success.