Segmenting Customers on the Basis of Things Like Products Purchased,sales

question 24

True/False

Segmenting customers on the basis of things like products purchased,sales history,demographic information,and desired product features can dilute the results of a CRM program;segmenting customers should be avoided.

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Definitions:

Cash Collections

The process of gathering and managing the cash payments received from customers or clients.

Sales Forecast

An estimate of the future sales of a product or service over a specific period, based on historical data, market analysis, and other factors.

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Average Collection Period

The average number of days it takes for a company to collect payments from its credit sales, a measure of the effectiveness of its credit and collection policies.