C08 Customer Service MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on C08 Customer Service, a fundamental topic in the field of IC38 Life Insurance Agent Exam. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our C08 Customer Service MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of C08 Customer Service mcq questions that explore various aspects of C08 Customer Service problems. Each MCQ is crafted to challenge your understanding of C08 Customer Service principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC38 Life Insurance Agent Exam tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our C08 Customer Service MCQs are your pathway to success in mastering this essential IC38 Life Insurance Agent Exam topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of C08 Customer Service. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your C08 Customer Service knowledge to the test? Let's get started with our carefully curated MCQs!

C08 Customer Service MCQs | Page 2 of 8

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Q11.
What is meant by customer lifetime value?

a.

Sum of costs incurred while servicing the customer over his lifetime

b.

Rank given to customer based on business generated

c.

Sum of economic benefits that can be achieved by building a long term
relationship with the customer

d.

Maximum insurance that can be attributed to the customer

Discuss
Answer: (c).Sum of economic benefits that can be achieved by building a long term
relationship with the customer Explanation:Customer Lifetime Value (CLV) is the sum of economic benefits that can be achieved by building a long-term relationship with the customer. This value represents the total economic worth or benefits that a business can derive from a customer over the course of their relationship. It includes not just the immediate transactions but also the potential for repeat business, referrals, and other value generated through the customer's ongoing engagement with the company. CLV is a critical concept in customer relationship management and is used to assess the long-term profitability of maintaining a customer relationship.
Q12.
What is the key element that every relationship begins with?

a.

Communication

b.

Trust

c.

Attraction

d.

Presence

Discuss
Answer: (c).Attraction Explanation:Every relationship begins with attraction. Attraction means being liked and being able to build a rapport with the customer, starting with creating a great first impression. Without attraction, a relationship is hardly possible. A salesperson cannot make much headway if they are not liked by the customer.
Q13.
Which element of a relationship is about being liked and creating a great first impression?

a.

Presence

b.

Communication

c.

Attraction

d.

Trust

Discuss
Answer: (c).Attraction Explanation:The element of a relationship about being liked and creating a great first impression is attraction. Attraction is regarded as the key to unlocking every heart. Without it, a relationship is hardly possible.
Q14.
Why is customer relationship management important for companies?

a.

It's a cost-effective way to acquire new customers

b.

It helps in achieving the highest level of profitability

c.

The cost of retaining a customer is lower than acquiring a new one

d.

It streamlines internal processes

Discuss
Answer: (c).The cost of retaining a customer is lower than acquiring a new one Explanation:Customer relationship management is important for companies because the cost of retaining a customer is lower than acquiring a new one. It's a cost-effective way to maintain a customer base and achieve long-term profitability.
Q15.
What does the second element of a relationship entail?

a.

Effective communication

b.

Building trust

c.

Being there when needed

d.

Offering attractive discounts

Discuss
Answer: (c).Being there when needed Explanation:The second element of a relationship entails being there when needed. This means being available and responsive to the customer's needs and concerns, which is essential for building trust and maintaining a healthy relationship.
Q16.
What is the "Customer Journey"?

a.

The path customers take to the insurance office

b.

A process of searching for prospective customers

c.

The experiences customers go through from initial contact to claim settlement

d.

The stages involved in the insurance sales process

Discuss
Answer: (c).The experiences customers go through from initial contact to claim settlement Explanation:The "Customer Journey" refers to the experiences customers go through from initial contact to claim settlement.
Q17.
What is one of the challenges in the prospecting phase of the sales process?

a.

Setting up formal appointments

b.

Qualifying potential customers

c.

Building trust and confidence

d.

Selling insurance

Discuss
Answer: (b).Qualifying potential customers Explanation:In the prospecting phase, one of the challenges is to qualify potential customers, ensuring that you target those likely to buy insurance.
Q18.
Why is setting up a formal appointment important in the sales process?

a.

To establish personal relationships with customers

b.

To separate business from casual discussions

c.

To sell trust and build confidence

d.

To qualify potential customers

Discuss
Answer: (b).To separate business from casual discussions Explanation:Setting up a formal appointment is important in the sales process to separate business discussions from casual ones and establish professional credentials.
Q19.
What does the process of selling insurance involve?

a.

Following a fixed and unalterable process

b.

Combining science and art

c.

Targeting all known and approachable people

d.

Prospecting only within one's immediate circle

Discuss
Answer: (b).Combining science and art Explanation:Selling insurance involves combining science and art, as it follows a set process while also incorporating the salesperson's beliefs, style, and personality.
Q20.
What is the primary goal of the Sales Interview in insurance?

a.

Closing the sale as quickly as possible

b.

Making a great first impression

c.

Determining the customer's exact insurance needs

d.

Providing a comprehensive product catalog

Discuss
Answer: (c).Determining the customer's exact insurance needs Explanation:The primary goal of the Sales Interview is to determine the customer's exact needs for which insurance is a solution.
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