Web 2.0 and CRM quiz answers

1) Answer: A -- True.
Web 2.0 is a buzzword for advanced Internet technology and applications including blogs, wikis, RSS and social bookmarking. The expression was coined by O'Reilly Media and MediaLive International in 2004, following a conference dealing with next-generation Web concepts and issues. The two major components of Web 2.0 are the technological advances enabled by Ajax and other new applications such as RSS and Eclipse and the user empowerment that they support.

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2) Answer: C.
One of the most significant differences between Web 2.0 and the traditional World Wide Web is greater collaboration among Internet users and other users, content providers and enterprises.

According to a definition on WhatIs.com, data was originally posted on Web sites, and users simply viewed or downloaded the content. Increasingly, users have more input into the nature and scope of Web content and in some cases exert real-time control over it.

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3) Answer: B -- False.
Web 2.0, and the power of unhappy customers who voice their complaints to the world via blogs, have changed the way companies need to manage the complete customer spectrum.

"You have to accommodate low-value customers because of what they can do to you if you don't," CRM expert Paul Greenberg told attendees at the 2007 Gartner CRM Summit. "Ten years ago, you could do what Sprint did and fire them, but now every one of them can bring you to your knees if they know how to or if they care to."

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4) Answer: A -- True.
Critics of Web 2.0 maintain that it makes it too easy for the average person to affect online content and that, as a result, the credibility, ethics and even legality of Web content could suffer. Defenders of Web 2.0 point out that these problems have existed ever since the infancy of the medium and that the alternative would be worse.

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5) Answer: A -- True .
Partsearch Technologies is a New York-based company that connects consumers and repair technicians with parts suppliers. Its 150-person call center in Kingston, N.Y. uses wiki technology to maintain its knowledge base, allowing agents to organize and comment on information on the different brands and parts that the company offers.

"We look at our expertise as in knowledge and customer service," Laumeister said. "We don't stock the parts." Read more about Partsearch's call center in this SearchCRM.com article: Call center relies on local talent, Web 2.0 technologies.

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6) Answer: B -- False.
In a keynote at the 2007 Gartner CRM Summit, Scott Nelson, Gartner's managing vice president, cited research which predicts that more than 80% of marketing professionals will fail to capitalize on Web-based consumer activity for people 25 or younger.

"This is going to be one of the biggest areas CRM has seen," Nelson said. "Investigate now."

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7) Answer: D.
Web 2.0 is demanding the attention of e-commerce businesses. A recent SearchCRM.com news article pointed out that customers who visit websites such as Amazon.com, which are full of recommendations and user reviews, demand similar features from other e-commerce businesses. And these sites often don't get a second chance to impress, according to Gene Alvarez, a Gartner analyst who led a session on "Selling in the Web 2.0 World."

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8) Answer: A -- True.
Rather than compete with Web sites like MySpace and Facebook, some marketers are embracing the technology to better connect with customers. Brand names as Nike, the Indianapolis Colts, USA Network and Coca-Cola are using community sites to create camaraderie and buzz about their brand. Other organizations are more focused on getting their customers together around other common interests.

"Depending on your brand and goals, owning a social network site can bring in an audience, contain them, and allow you to speak to them whenever you want," said Rachel Honig, chief operating officer of Digital Power & Light (DP&L), a digital marketing firm, in an article on how marketers are tapping into social networks.

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9) Answer: A.
An application from Austin, Texas-based BazaarVoice Inc. mimics the popular Yahoo! Answers and encourages online shoppers to ask and answer questions about products they're investigating at e-commerce sites.

BazaarVoice, as well as competitors Aggregate Knowledge and Loomia, provide services to ecommerce sites that they may not be able to build themselves. While Aggregate Knowledge and Loomia provide recommendations, BazaarVoice offers user-generated content features like comments, ratings and reviews.

The service offers analytics that drive insight into questions that the buying public has about products and offers the application as a widget that sits on a retailer's own Web site. Also, the questions and responses improve search engine results. BazaarVoice is offered via the SaaS model, where the application is housed and operated by the vendor.

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10) Answer: C.
As with Siebel 8.0, Oracle's new premise-based application, advances in Siebel CRM On Demand focus on usability. Adding Web 2.0 technology has made user tasks simpler and navigation, mouse clicks and page refreshes fewer, according to Oracle.

"The big thing that's going to disturb the enterprise is Web 2.0," said Anthony Lye, senior vice president of CRM On Demand at Oracle. "People will exploit those advances to drive knowledge workers." Return to the Web 2.0 and CRM quiz.