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Question 58 - CSCP discussion

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Compared to mass-media marketing, customer relationship management has the advantage of allowing the organization to:

A.
compete for customers based on service.
Answers
A.
compete for customers based on service.
B.
reach a larger number of potential customers.
Answers
B.
reach a larger number of potential customers.
C.
reduce inventory to improve cash flow.
Answers
C.
reduce inventory to improve cash flow.
D.
focus on attracting new customers.
Answers
D.
focus on attracting new customers.
Suggested answer: A

Explanation:

Customer relationship management (CRM) offers several advantages over traditional mass-media marketing, particularly in terms of customer service:

Personalized Service: CRM systems enable companies to collect and analyze customer data, allowing for personalized service that meets individual customer needs and preferences.

Customer Engagement: By engaging customers through personalized interactions and targeted communications, companies can build stronger relationships and loyalty.

Competitive Differentiation: Offering superior service based on deep customer insights gained from CRM can differentiate a company from competitors who may rely solely on mass marketing techniques.

Enhanced Customer Experience: CRM helps in delivering a consistent and high-quality customer experience across all touchpoints, which is essential for retaining customers and encouraging repeat business.

Feedback and Improvement: CRM systems facilitate the collection of customer feedback, enabling continuous improvement in service offerings and customer satisfaction.

Peppers, D., & Rogers, M. (2016). Managing Customer Experience and Relationships: A Strategic Framework. Wiley.

Payne, A., & Frow, P. (2013). Strategic Customer Management: Integrating Relationship Marketing and CRM. Cambridge University Press.

asked 16/09/2024
Christian Galea
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