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Question 73 - CSCP discussion

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Which of the following is the most important result when a company implements customer relationship management?

A.
Profits are maximized.
Answers
A.
Profits are maximized.
B.
Retention of key customers is increased.
Answers
B.
Retention of key customers is increased.
C.
Product options are increased.
Answers
C.
Product options are increased.
D.
Transaction costs are decreased.
Answers
D.
Transaction costs are decreased.
Suggested answer:

Explanation:

Context: Customer relationship management (CRM) systems aim to manage a company's interactions with current and potential customers.Options Breakdown:A . Profits are maximized: While a potential outcome, it is a broader financial goal rather than a direct result of CRM.B . Retention of key customers is increased: CRM focuses on building and maintaining relationships, leading to higher customer retention.C . Product options are increased: Not directly related to CRM implementation.D . Transaction costs are decreased: May be an indirect benefit but not the primary focus of CRM.Answer: Justification: The primary purpose of CRM is to enhance customer satisfaction and loyalty, thereby increasing the retention of key customers, which is crucial for long-term business success.CRM system benefits and implementation guidesIndustry reports on CRM effectiveness in improving customer retention

asked 16/09/2024
Ange YAO
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