Understand Customers and Customer Retention Level 3 J/506/2910



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Pearson TE (QF) Understand ustomers and ustomer Retention Level 3 J/506/2910 2015 Practice Test Time: 35 minutes Paper Reference S-3-27 PT You must have: Multiple choice answer sheet lack pen Instructions Use black ink or ball-point pen. nswer all questions. Encircle your answers on the separate answer sheet. Information The total mark for this paper is 25. The marks for each question are shown in brackets. dvice Read each question carefully before you start to answer it. Try to answer every question. heck your answers if you have time at the end. Turn over S50554 2015 Pearson Education Ltd. 1 *S50554*

1 Which technique would help to attract customers? Promotional offers Employee focus groups Employee benefits dditional charges 2 n organisation uses online surveys to measure customer satisfaction. What is a feature of this technique? large number of participants are targeted One-to-one interviews will take place n increased number of staff is required Two-way communication is encouraged 3 For what purpose would a customer relationship management system use customer addresses? Payment profiles irect mailshots Product selection Product development 4 n organisation is setting new performance targets for customer satisfaction. What needs to be taken into account? ompetitor awareness of price differences Supplier awareness of organisational procedures ustomer awareness of product range available Staff awareness of operational objectives 5 n organisation is introducing a customer relationship management system. What focus should this system have? To tailor the service offer to meet customer needs To record customer wants To calculate the cost of providing services to customers To store product details 2 S50554

6 Which of these factors will have a positive impact on customer retention? Staff developing a rapport with customers Moving the geographic location of the organisation Staff encouraging customers to spend more n organisation updating its internal procedures 7 n organisation uses its customer relationship management system to monitor customer feedback in order to resolve problems quickly. What is the purpose of this? It will inform new marketing materials It will encourage compensation to be given It will improve customer retention It will be used to justify price increases 8 What does the term customer experience mean? Quality of all products purchased dvertising to attract customers ll dealings with the organisation Previous customer transactions 9 customer relationship management system stores details of customer likes and dislikes. For what purpose would this be used? To match customers to new services To assess customers ability to pay To analyse the annual spend To evaluate staff performance 10 Which of these is a customer demographic? Gender Postal code ctivities Knowledge S50554 3 Turn over

11 Which of these is a source of data for analysing the performance of customer service? Receipts omplaints Profits dvertising 12 n organisation wants to establish which customers have not purchased its services recently. What information from the organisation s customer relationship management system should be used? Highest spend Visit dates redit status Transaction history 13 n organisation wishes to provide a new service to local customers. What characteristic would help to identify appropriate customers to target? ountry House number ounty Postal code 14 n organisation works hard to retain its customers. What is the value of this to the organisation? Fewer staff will be required Less communication is needed ustomers are more likely to provide testimonials Regular discounts can be given to customers 15 n organisation wants to increase its number of loyal customers. Which of these factors will influence this? Select two options. (2) E Supplier profits Quality of products Staff age Staff salaries ompetitor prices 4 S50554

16 Which of these will help service staff recover a customer they have lost to a competitor? Understanding why the customer left Understanding the customer s value Knowing where the customer went Knowing when the customer left 17 large international organisation with many customers wants to establish how they have viewed the recent service they have received. Which of these customer satisfaction techniques is most appropriate to use? Focus group Postal questionnaire Telephone poll Online survey 18 n organisation is setting key performance indicators to meet its customer satisfaction targets. Which of these is a factor to consider? Location of suppliers Views of staff Price of products Marketing of services 19 n organisation wishes to assess its customer loyalty. Which of these will help to achieve this? n advertising campaign telephone poll Reduced spending Supplier analysis S50554 5 Turn over

20 This is a two part question. Please answer both parts. (i) Which of these is a feature of the retention of customers? Updating stored information Maintaining regular dialogue (ii) Which of these is a core value that will encourage customers to remain loyal? Making changes to the organisational brand Training service staff to a high standard 21 What is a scorecard on customer satisfaction used for? Producing customer questionnaires enchmarking competitors Recording customer purchases nalysing performance data 22 Which of these is a feature of an effective customer relationship management system? Recording product details Recording special requirements Recording staff details Recording competitor prices 23 n organisation wants to recover customers from a competitor. Which factor will help to identify the customers to target? ustomer preferences ustomer opinions Value of the customer Lifestyle of the customer 6 S50554

24 Which of these techniques should an organisation use to retain customers? ttracting additional custom from competitors Introducing changes to reduce organisational costs Providing additional services to customers hecking that information given by the customer is correct TOTL FOR PPER = 25 MRKS S50554 7