CII Institute of Logistics
Post Graduate Diploma in Supply
Semester III- Assignment -II
Customer Relationship Management
Answer all questions
1. The first two stages of customer loyalty are prospect and customer and the last is
advocate. What is the stage in between called?
2. What is the first stage of S-CRM?
3. On the road to S-CRM, what happens after customer acquisition?
4. In which stage is ‘share of wallet’ a measure of customer loyalty?
5. Vantire and Siebel are examples of (choose the right one) a) CRM packages b) data
warehousing systems c) data mining techniques?
6. When evaluating channels, who looks for factors such as coverage and conflict handling?
7. I used Denim shaving cream regularly before switching to Old Spice about a year back.
In terms of loyalty, how would you describe me?
8. Loyal customers of airlines are called
9. When a Maruti car dealer sells his customer a battery, is he cross selling or up selling?
10. When the same Maruti dealer convinces his customer who owns an Esteem to upgrade to
a Baleno, is he cross selling or up selling?
Answer any Two Questions
All answers should be backed by examples, ideally from your own experience.
1. Explain various data mining tools and techniques, emphasising their relevance to CRM.
2. Describe the process of New Product Development. How is it related to CRM?
3. What is an MIE – a Market Intelligent Enterprise?
4. How are CRM and SCM related? Your answer should clearly explain how each process
reinforces the other.
5. Explain the customer life cycle, bringing out clearly what organisations need to do at
each stage to acquire and retain customers.
Study the enclosed Case and answer all questions provided at the end of the Case Study. Your
answers may be supported with any diagrams, models or algorithms, as may be necessary.
Four customers in search of solutions
(Adapted from ‘Services Marketing’ by Lovelock & Wirtz)
(Four telephone subscribers from suburban Chennai call to complain about a variety of problems.
How should the telephone company respond to each?)
Among the many customers of Hindustan Telecom (name masked) in Chennai are four
individuals living in up market Adyar. Each of them has a telephone related problem and decides
to call the company about it.
Varadarajan grumbles continually about the amount of his telephone bill – which is in fact, in the
top 2% of all household phone bills in Chennai. Being an exporter who has his office at home,
this gentleman calls Malaysia and Singapore most mornings, Ranipet and Vellore almost daily and
Mumbai and Delhi almost all weekends. He also subscribes to almost all the value added services.
One day, on reviewing his latest telephone bill, he is convinced that he has been overcharged
and calls Hindustan’s customer service department to complain and request an adjustment.
Viswanathan has missed several important calls recently because the caller received a busy
signal. He phones the telephone company to determine possible solutions to this problem. His
telephone bill is at the median level for a household subscriber. Almost all calls made by this
Central Government pensioner are local, but there are occasional calls to Australia and the States
where his two sons work. He does not subscribe to any value added services.
During the past several weeks, Mrs. Parvathi has been distressed to receive a series of obscene
telephone calls. It sounds like the same person each time. She calls to see whether the phone
company can put a stop to this harassment. She is a 78 year old lady staying alone and her
phone bill is in the bottom 10% of all household subscriber bills with almost all calls being local.
For more than a week, the phone at Mr. Paul’s house has been making strange humming and
crackling noises, making it difficult to hear what the other person is saying. He calls Hindustan to
report the problem. He guesses that an old wiring connection is causing the problem and informs
the company of this. His phone bill is at the 75th percentile for a household subscriber. Most calls
are made to locations within Tamil Nadu, usually in the evenings and early mornings, though a
few business calls are made to other locations in India.
1. Based strictly on this information, how many possibilities do you see to segment the
telecommunications market? Using CRM concepts, how can the phone company
prioritise these segments?
2. Imagine you are a Customer service representative at Hindustan. How would you
address each of the problems and complaints reported?
3. Do you see any marketing opportunities for Bell in any of these complaints?