Final answer:
Customer relationship management (CRM) is a strategy that businesses use to manage and improve their interactions with customers, but it also involves managing relationships with potential customers, suppliers, and partners.
Step-by-step explanation:
Customer relationship management (CRM) is a strategy that businesses use to manage and improve their interactions with customers. It involves the use of technology and processes to gather and analyze customer data, and then use that information to enhance customer satisfaction and loyalty. However, CRM is not limited to just managing customer relationships. It also encompasses managing relationships with potential customers, suppliers, and partners.
For example, CRM systems can help businesses track customer interactions, such as phone calls, emails, and purchases, and use that information to provide personalized experiences and targeted marketing campaigns. Additionally, CRM can help businesses identify potential prospects by analyzing data on leads and prospects, and then nurturing those relationships to convert them into customers.
Therefore, it's important to understand that CRM is not solely focused on existing customers, but also encompasses various aspects of managing and enhancing relationships with different stakeholders.