UNIVERSITY EXAMINATIONS: 2017/2018
EXAMINATION FOR CERTIFICATE IN BUSINESS INFORMATION
TECHNOLOGY
CBIT 0101: CUSTOMER RELATIONS
DATE: DECEMBER, 2017 TIME: 2 HOURS
INSTRUCTIONS: Answer Question One and Any Other Two Questions
QUESTION ONE (30 MARKS)
a) Describe two key elements of a Customer Centric organization (6 Marks)
b) Draw the customer lifecycle showing key stages (9 Marks)
c) Which stage of the customer lifecycle is the stage of highest risk and why? (3 Marks)
d) Identify and briefly describe the 4 types of Customer Relationship Management (12 Marks)
QUESTION TWO (20 MARKS)
Your friend hears you talking about Customer Relationship Management, he rents a stall in town where
he sells mobile phones and phone accessories. He tells you that his business does not need CRM since
his customers are walk- in customers.
a. Explain to your friend what CRM is (5 Marks)
b. Explain in detail, 2 practical ways he can apply CRM in his business? (9 Marks)
c. Discuss 2 ways that it will benefit his business? ( 6 Marks)
QUESTION THREE (20 MARKS)
a) Dwyer has identified five general phases of the customer–supplier relationship. Explain these
phases from a customer’s point of view. (15 Marks)
b) What is customer churn? How can a business manage customer churn to better business?
(5 Marks)
QUESTION FOUR (20 MARKS)
a) Explain with examples 2 attributes a good relationship should have (6 Marks)
b) To understand their customers’ tenures some businesses, use a model known as a “value ladder” or
“value staircase”. Discuss the steps of the value ladder. (10 Marks)
c) Explain why it is important for a business to improve customer retention as early as possible.
(4 Marks)
QUESTION FIVE (20 MARKS)
b) Briefly describe the five major phases in CRM project implementation (10 Marks)
c) Discuss the importance of change management in a CRM project implementation (5 Marks)
d) In CRM project implementation, development of the CRM strategy starts with a situation analysis.
Explain the activities that you would undertake during a situation analysis (5 Marks)
