CUST EXPERIENCE FINAL EXAM
QUESTIONS AND ANSWERS GRADED A+
2025/2026
CRM - ANS CRM is a core business strat that enables firms to gain a deep understanding of
your customers and potential customers. It helps to build intimate relationships to provide
targeted service. It's grounded in high quality customer related data and enabled by information
technology. Ultimately, CRM provides firms with insights to make data driven decisions.
Target customer segments with CRM - ANS Acquiring new customers
Managing current customer relationships
What are the two main target customer segments? - ANS 1) Acquiring new customers
2) Managing current customer relationships
Why is acquiring new customers important? - ANS It brings new people into the brand and
support growth
Why is managing current customer important? - ANS It focuses on keeping customers
satisfied, loyal, and likely to repurchase
How much more does it cost to acquire a new customer vs keep an existing one? - ANS About
5-10 times more
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,What percentage of customers do most companies lose within 5 years? - ANS Around 50%
Why is acquiring new customer more expensive? - ANS It requires spending on advertising,
promotions, onboarding, and awareness-building
Levels of Customer Relationships - ANS Customer as strangers (Acquire)
Customers as acquaintances (satisfy)
Customers as friends
Customers as partners
What is the goal with customers who are "strangers"? - ANS Acquire them
What characterizes customers as "strangers"? - ANS no prior relationship with the company
What is the goal with customers who are "acquaintances"? - ANS Satisfy them
What characterizes customers as "acquaintances"? - ANS They've made a first purchase; trust
begins forming
What characterizes customers as "friends"? - ANS They are more loyal, emotionally
connected, and likely to return
What is a company's goal with "friends"? - ANS Retain the "freind" by Strengthening loyalty
through personalization and consistent value
What characterizes customers as "partners"? - ANS Deep, long-term, mutually beneficial
relationships (ex. loyalty programs, subscriptions)
What is the goal with "partners"? - ANS Enhance the relationship - Maintain collaboration
and long-term commitment
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Goals of Relationship Management - ANS Acquire customers (Strangers)
Satisfy Customers (Acquaintances)
Retain Customers (Friends)
Enhance customers (Partners)
What defines customers as strangers and how should firms interact with them? -
ANS Competitive Advantage:
- Attractiveness — the firm must appear appealing enough to spark interest and trial.
Purchasing Behavior:
- Customers are in interest → exploration → trial mode.
- No loyalty or expectations yet.
Selling Focus:
- Create awareness of the firm and its offerings.
- Introduce the value proposition clearly.
Relationship Time Horizon:
- None — the buyer has no prior interactions with the firm.
Marketing Goal:
- Acquire the customer's business for the first time.
What defines customers as acquaintances and how should firms interact with them? -
ANS Competitive Advantage:
Satisfaction — meeting expectations encourages repeat purchasing.
Purchasing Behavior:
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Satisfaction reinforces future purchases.
Customers search less for alternatives because the firm feels familiar.
Selling Focus:
Build familiarity and strengthen basic knowledge about the firm.
Relationship Time Horizon:
Short — customers can switch firms easily with minimal cost.
Marketing Goal:
Satisfy the customer's needs and wants to encourage returning.
What characterizes customers at the friend stage and how do firms strengthen the relationship?
- ANS Competitive Advantage:
Satisfaction + trust — trust becomes essential to keep the customer engaged.
Purchasing Behavior:
Customers rely on trust to continue purchasing from the firm.
Selling Focus:
Use specific knowledge of the customer's needs and wants for more tailored interactions.
Relationship Time Horizon:
Medium — trust requires time and consistent performance to build.
Marketing Goal:
Retain the customer's business over time.
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS GRADED A+
2025/2026
CRM - ANS CRM is a core business strat that enables firms to gain a deep understanding of
your customers and potential customers. It helps to build intimate relationships to provide
targeted service. It's grounded in high quality customer related data and enabled by information
technology. Ultimately, CRM provides firms with insights to make data driven decisions.
Target customer segments with CRM - ANS Acquiring new customers
Managing current customer relationships
What are the two main target customer segments? - ANS 1) Acquiring new customers
2) Managing current customer relationships
Why is acquiring new customers important? - ANS It brings new people into the brand and
support growth
Why is managing current customer important? - ANS It focuses on keeping customers
satisfied, loyal, and likely to repurchase
How much more does it cost to acquire a new customer vs keep an existing one? - ANS About
5-10 times more
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,What percentage of customers do most companies lose within 5 years? - ANS Around 50%
Why is acquiring new customer more expensive? - ANS It requires spending on advertising,
promotions, onboarding, and awareness-building
Levels of Customer Relationships - ANS Customer as strangers (Acquire)
Customers as acquaintances (satisfy)
Customers as friends
Customers as partners
What is the goal with customers who are "strangers"? - ANS Acquire them
What characterizes customers as "strangers"? - ANS no prior relationship with the company
What is the goal with customers who are "acquaintances"? - ANS Satisfy them
What characterizes customers as "acquaintances"? - ANS They've made a first purchase; trust
begins forming
What characterizes customers as "friends"? - ANS They are more loyal, emotionally
connected, and likely to return
What is a company's goal with "friends"? - ANS Retain the "freind" by Strengthening loyalty
through personalization and consistent value
What characterizes customers as "partners"? - ANS Deep, long-term, mutually beneficial
relationships (ex. loyalty programs, subscriptions)
What is the goal with "partners"? - ANS Enhance the relationship - Maintain collaboration
and long-term commitment
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Goals of Relationship Management - ANS Acquire customers (Strangers)
Satisfy Customers (Acquaintances)
Retain Customers (Friends)
Enhance customers (Partners)
What defines customers as strangers and how should firms interact with them? -
ANS Competitive Advantage:
- Attractiveness — the firm must appear appealing enough to spark interest and trial.
Purchasing Behavior:
- Customers are in interest → exploration → trial mode.
- No loyalty or expectations yet.
Selling Focus:
- Create awareness of the firm and its offerings.
- Introduce the value proposition clearly.
Relationship Time Horizon:
- None — the buyer has no prior interactions with the firm.
Marketing Goal:
- Acquire the customer's business for the first time.
What defines customers as acquaintances and how should firms interact with them? -
ANS Competitive Advantage:
Satisfaction — meeting expectations encourages repeat purchasing.
Purchasing Behavior:
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Satisfaction reinforces future purchases.
Customers search less for alternatives because the firm feels familiar.
Selling Focus:
Build familiarity and strengthen basic knowledge about the firm.
Relationship Time Horizon:
Short — customers can switch firms easily with minimal cost.
Marketing Goal:
Satisfy the customer's needs and wants to encourage returning.
What characterizes customers at the friend stage and how do firms strengthen the relationship?
- ANS Competitive Advantage:
Satisfaction + trust — trust becomes essential to keep the customer engaged.
Purchasing Behavior:
Customers rely on trust to continue purchasing from the firm.
Selling Focus:
Use specific knowledge of the customer's needs and wants for more tailored interactions.
Relationship Time Horizon:
Medium — trust requires time and consistent performance to build.
Marketing Goal:
Retain the customer's business over time.
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
