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

1.

Why do Web response campaigns produce more white mail than phone response campaigns?

  1. People are curious about the offering.

  2. Operators cannot worm source codes out of callers.

  3. On the Web you can’t easily capture source codes.

  4. All of the above.

2.

Which of the following is not suggested as a way of improving a Web site?

  1. A high-tech flash page

  2. Personal greetings

  3. Search boxes

  4. The three-click rule

3.

What is the cost per registrant of an email campaign that costs $0.11 per email and produces a 0.67 percent click-through rate and a 48 percent registration rate?

4.

What was the essential lesson in the Isuzu truck case?

  1. You can sell a lot of trucks through direct mail.

  2. You can accurately predict response rates.

  3. You need a customer database.

  4. Truck buyers are business-to-business customers.

  5. The control group beat the tests.

5.

The Scotiabank Applause program proved all but which of the following?

  1. The power of the Web.

  2. That long-term employees will buy into a new program.

  3. That employees will work to receive rewards.

  4. That employee rewards program work.

  5. None of the above; it proved all of them.

6.

In the KnowledgeBase case study, the key goal was

  1. To create a profitable Web site

  2. To increase customer transactions

  3. To deliver a new system in 60 days

  4. To reduce call center costs

  5. To reduce churn

7.

Which of the following was not suggested as something to have on your Web site?

  1. Pictures

  2. Maps

  3. Articles

  4. Diagrams

  5. Video clips

8.

Which has the highest rate of errors as a response mechanism?

  1. Email

  2. Fax

  3. Phone

  4. Web

  5. Mail

9.

Which has the lowest cost per 100,000 as a response mechanism?

  1. Mail

  2. Phone

  3. Email

  4. Fax

  5. All have the same cost

10.

Which has the highest level of interactivity as a response mechanism?

  1. Phone

  2. Web

  3. Email

  4. Fax

  5. Mail

Answers

1.

(a) People are curious about the offering.

2.

(a) A high-tech flash page

3.

Rate

Number

Dollars

Mails

$0.11

100,000

$11,000

Click-through

0.67%

670

$16.42

Registrations

48%

322

$34.20

4.

(b) You can accurately predict response rates.

5.

(e) None of the above; it proved all of them.

6.

(e) To reduce churn

7.

(e) Video clips

8.

(b) Fax

9.

(c) Email

10.

(a) Phone

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