The Customer Loyalty Solution : What Works (and What Doesnt) in Customer Loyalty Programs

1.

In the CSC business-to-business case, how were the top 10 prospects for each agent selected?

  1. Agents were asked to select them.

  2. Existing customers were modeled.

  3. Prospects were surveyed.

  4. Prospect sales were modeled.

  5. D&B provided prospect purchase intentions.

2.

Which of the following is not typically part of D&B business-to-business data?

  1. Market penetration

  2. Number of employees

  3. Prizm cluster codes

  4. Annual sales

  5. SIC codes

3.

Which of the following was not a feature of the BenefitMall case study?

  1. Broker newsletters

  2. Satisfaction surveys

  3. SIC analysis

  4. Welcome kits

  5. Reactivation emails

4.

In the Isuzu case study, what percentage of dealers logged on to the site and ordered postcards?

  1. 2 percent

  2. 4 percent

  3. 6 percent

  4. 12 percent

  5. 50 percent

5.

Which of the following is not a benefit of vendor-managed inventory?

  1. Vendors do the selling for their customers.

  2. Vendors own the products in their customers’ warehouses.

  3. Vendors can call back slow-moving items.

  4. Vendors can predict customer product usage.

  5. Inventory costs for customers are down.

6.

In the Radisson Hotels case, what did the “hurdle” mean?

  1. A goal for total sales

  2. A minimum that was the same for all agents

  3. A level that only top agents could achieve

  4. A rate calculated using the agent’s previous sales

  5. None of the above

7.

In the Isuzu Postcard Direct program, what was the best way for agents to order the postcards?

  1. The Web

  2. Emails

  3. Direct mail

  4. Phone

  5. Fax

8.

What was the advantage to National Semiconductor of the FedEx arrangement?

  1. National cut shipping costs by 8 percent.

  2. National eliminated eight warehouses.

  3. FedEx took over some of National’s shipping responsibilities.

  4. National cut delivery time to customers to 1 week.

  5. All of the above.

9.

Who owns “forward-deployed” products?

  1. The supplier

  2. The customer

  3. The taxpayers

  4. The marketing department

  5. The IT department

10.

Why is the discount rate in year 1 of a business-to-business LTV table seldom equal to 1?

  1. Business marketing costs are higher.

  2. The SIC codes are often unknown.

  3. Business customers usually pay long after shipment.

  4. The annual sales to businesses are greater than those to consumers.

  5. Business databases are usually smaller than consumer databases.

Answers

1.

(b) Existing customers were modeled.

2.

(c) Prizm cluster codes

3.

(c) SIC analysis

4.

(e) 50 percent

5.

(a) Vendors do the selling for their customers.

6.

(d) A rate calculated using the agent’s previous sales

7.

(a) The Web

8.

(e) All of the above

9.

(a) The supplier

10.

(c) Business customers usually pay long after shipment.

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