ESB Customer Relationship Management

Question 1

What is the primary goal of Customer Relationship Management (CRM) for a small business?

Accepted Answer

Building and maintaining profitable long-term customer relationships

Answer

Reducing the cost of production

Answer

Automating all marketing activities

Answer

Increasing the number of product lines

Question 2

Which metric best measures how likely a customer is to recommend your business to others?

Accepted Answer

Net Promoter Score (NPS)

Answer

Customer Acquisition Cost (CAC)

Answer

Gross Profit Margin

Answer

Return on Investment (ROI)

Question 3

A small business notices that 20% of its customers generate 80% of its revenue. This observation reflects which business principle?

Accepted Answer

The Pareto Principle (80/20 Rule)

Answer

The Law of Diminishing Returns

Answer

Break-even Analysis

Answer

Economies of Scale

Question 4

What does 'customer lifetime value' (CLV) represent?

Accepted Answer

The total revenue a customer generates over the entire relationship with the business

Answer

The cost to acquire a single customer

Answer

The average order value per transaction

Answer

The number of years a customer has been with the business

Question 5

Which of the following is a key advantage of using CRM software in a small business?

Accepted Answer

It centralizes customer data for better communication and follow-up

Answer

It eliminates the need for customer service staff

Answer

It automatically increases sales prices

Answer

It replaces the need for a marketing plan

Question 6

A customer who had a complaint resolved quickly and satisfactorily often becomes what type of customer?

Accepted Answer

A highly loyal advocate

Answer

A one-time buyer

Answer

A price-sensitive customer

Answer

An inactive customer

Question 7

Which strategy involves offering existing customers additional or complementary products to increase revenue per customer?

Accepted Answer

Cross-selling

Answer

Cold calling

Answer

Market segmentation

Answer

Penetration pricing