Quiz

1.	Using the 80 percent rule, you should Concentrate on the top 80 percent of your customers. Clean up 80 percent of your files first. Get rid of the bottom 20 percent of your customers. Build a data warehouse. Do none of the above.
2.	You should spend your marketing resources on those customers who (best answer) Are most likely to defect. Have the highest LTV. Are priority B. Are not priority C. Have the highest LTV and the lowest likelihood of defecting.
3.	Which of the following was not a feature of the iMarket customer management program? Welcome letter Renewal fax Birthday cards RFM analysis Customer support survey
4.	The 13 Golden Casket behavioral clusters were defined by all but which of the following? Total amount spent Methods of play Number of certificates used Brand Geographic region
5.	What was the most important key to Golden Casket’s success? The cross-sell model The Powerball The Winner’s Circle Gold Lotto The Oz Lotto
6.	Which were not among the results that Golden Casket achieved by using the new modeling system? The annual fee was raised. The company received $1.1 million in incremental revenue. The number of active players increased by 234,000. Many customers were driven to use the Web. Brand managers fought over the more profitable customers.
7.	As a result of the Life Matters program all but which of the following happened? Thirty-five percent more marketing campaigns were run in a 9-month period. Customers were ranked by RFM with a maximum score of 125. Annual marketing program savings were $3.5 million. There were 10 million customer contacts in 9 months, an increase of 25 percent. There were 48,000 new accounts opened.
8.	In the Bank of Norway case study, all but which of the following resulted? The bank added 2000 new total customers each month. There was a 60 percent conversion rate. The new database produced responses of 70 to 80 percent. There was an 1100 percent increase in the bank’s conversion rate. The payback period for the database investment was 12 months.
9.	The company rewarded its customers with Phone trade-in Donations to the Special Olympics Free movie rentals Price plans based on customer behavior All of the above
10.	The company’s benchmarks from the program included all but which of the following? Reports produced in a few weeks Market-level analysis possible Messages that could be tailored to customer segments New fields added to the database Fields that permitted it to make predictive decisions

Answers

1.	(b) Clean up 80 percent of your files first.
2.	(d) Are not in priority C
3.	(c) Birthday cards
4.	(e) Geographic region
5.	(a) The cross-sell model
6.	(e) Brand managers fought over the more profitable customers.
7.	(b) Customers were ranked by RFM with a maximum score of 125.
8.	(a) The bank added 2000 new total customers each month.
9.	(e) All of the above
10.	(a) Reports produced in a few weeks