Which of the following statements is true of customer relationship management?
a. It involves targeting the average customer or everybody.
b. It involves establishing and tracking customer interactions with the company.
c. It considers all the customers of the firm as one large group that should be targeted with a single promotional strategy.
d. It is used by sales-oriented firms to convince customers to buy their products.
ANSWER: b
Customer relationship management is a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups. This is accomplished by organizing the company around customer segments, establishing and tracking customer interactions with the company, fostering customer-satisfying behaviors, and linking all processes of the company from its customers through its suppliers.
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