Question

Which of the following is true of customer relationship management (CRM)?

Multiple Choice
a.A company initiates the CRM process by gathering data from various touch points.
b.CRM means giving employees permission to make decisions and take action on their own to help their customers.
c.CRM refers to the computerized search for meaningful trends in a large amount of data.
d.CRM is an iterative rather than a linear process and revolves around a cycle of activities.
e.Companies need not have a physical or Internet presence to capture CRM data

Answer 1

CRM is initiated by gathering data from various touchpoints and is an iterative process that revolves around a cycle of activities aimed at improving customer relationships. This includes collecting and analyzing customer information to better understand behaviors and preferences.

Step-by-step explanation:

Among the multiple-choice options provided regarding customer relationship management (CRM), the most accurate statement is that a company initiates the CRM process by gathering data from various touchpoints. This process involves collecting information across different stages of the customer journey, which allows businesses to better understand customer behaviors and preferences. Moreover, CRM is an iterative process that revolves around a continuous cycle of activities, including the acquisition, analysis, and use of customer data to enhance relationships and improve business outcomes. This data is used to tailor approaches and communications with customers, aiming at building loyalty and longevity in relationships.

Examples such as the marketing manager seeking customer age data, the librarian categorizing book checkouts by age group, and political polling are all instances of data collection that could be part of a sophisticated CRM system if used to improve customer or stakeholder relationships.