Quiz

1.	In the prospect penetration case study, what can you use the target potential index for? Determining which customers are worthless Determining your retention budget Deciding which prospects you should aim at acquiring Nothing, since it is a worthless idea Scrap paper
2.	What factor was not used to select prospects in the Key Equipment case? Major industry Products purchased Number of employees Year company started Sales volume
3.	In the SalesLogix case, which of the following was not listed as being a problem to begin with? There were no e-marketing campaigns. The company lacked high-technology products. There was no lead-management system. Telemarketing was not integrated. The cost per lead was $500.
4.	Which of the following was not one of the results of the SalesLogix case? Lead volume grew to 9600 per quarter. Online events grew to 12 per month. Telemarketing was outsourced to a better bureau. The system filtered out 25 percent of raw leads. There was 100 percent lead tracking.
5.	In the BMW study, which one of the following was not done? Using Experian data in regressions. Delivering personalized content to prospects. Assigning LTV to each customer and participant. Using variables to score prospects. None of the above; all these things were done.
6.	List four product categories that cluster coding probably works for and four that it probably doesn’t work for.
7.	Which of the following is probably not true of most companies? The company pays bonuses for customers, not for long-term customers. The company does not know whether new customers will be long-term or not. The company has not computed the LTV of customers or prospects. The company is highly customer-centric. Marketing and sales are going in different directions.
8.	Why did the Weekly Standard custom approach work? Customers are dumb. Customers like to have their views agreed with. It was a fluke. Most such copy fails. The numbers are probably fake. None of the above.
9.	In the timeshare case, if no-hook tours perform better, why does anyone sell hook tours? The data are wrong. Hook tours are better. Hook tours are traditional. It takes time to change an established system. It is hard to persuade people that what they are doing is wrong. Answers b, c, and d.
10.	What are three things that msdbm did for BMW that helped to solve the problem?

Answers

1.	(c) Deciding which prospects you should aim at acquiring
2.	(b) Products purchased
3.	(b) The company lacked high-technology products.
4.	(c) Telemarketing was outsourced to a better bureau.
5.	(e) None of the above; all these things were done.
6.	Works: newspapers, mall location, luxury car sales, financial services Doesn’t work: business-to-business, nonprofit, packaged goods, nonluxury cars
7.	(c) The company has computed the LTV of customers or prospects.
8.	(b) Customers like to have their views agreed with.
9.	(e) Answers b, c, and d.
10.	It: a. Performed regression and correlation analysis based on customer-supplied and Experian data on current BMW owners to identify unique independent variables. b. Developed score ranges for variables based on frequency distribution, standard deviation, and historic experience. c. Scored samples of prospects and compared results. d. Developed lifetime value tables and assigned a value to each customer and participant. e. Delivered personalized content and information to each responder, whether that responder was a previous customer or a prospect. f. Used variables to score prospects; these variables included purchase time frame, make of current vehicle, age, income-to-price ratio, year of current car, source of prospect lead, and debt-to-income ratio.