Question

Which of the following is not one of the advantages of CRM?

A. Increases advertising costs
B. Makes it easier to target specific customers
C. Allows greater competition based on service rather than price
D. Prevents overspending on low-value customers
E. Makes it easier to track effectiveness

Answer 1

The correct answer is A. Increases advertising costs. CRM offers advantages such as targeting specific customers, competition based on service, preventing overspending, and tracking effectiveness.

Step-by-step explanation:

The correct answer is A. Increases advertising costs.

CRM, or Customer Relationship Management, is a strategy that helps businesses build and maintain relationships with their customers. It offers several advantages, including:

1. Makes it easier to target specific customers: CRM systems allow businesses to segment their customer base and tailor marketing efforts to specific groups.
2. Allows greater competition based on service rather than price: By understanding customer preferences and needs, businesses can differentiate themselves based on excellent service.
3. Prevents overspending on low-value customers: CRM systems allow businesses to identify and prioritize high-value customers, ensuring resources are allocated efficiently.
4. Makes it easier to track effectiveness: CRM systems provide valuable insights into marketing campaigns and customer interactions, allowing businesses to measure their success and make data-driven decisions.

Of the options provided, A. Increases advertising costs, is not an advantage of CRM.