Question

In todays environment, customer retention is more important than customer acquisition. The objective of collecting customer information is ________?

A. For Customer Relationship Management
B. to support direct sensory perception findings
C. to justify the purchase of a Point of Sale (POS) system
D. to create efficient consumer response (ECR)
E. to implement sales force automation

Answer 1

The objective of collecting customer information is for Customer Relationship Management (CRM). By gathering customer information, businesses can personalize their interactions, understand customer needs and preferences, and build long-term relationships with customers.

Step-by-step explanation:

The objective of collecting customer information is for Customer Relationship Management (CRM). CRM refers to the practices, strategies, and technologies used by businesses to manage and analyze customer interactions and data throughout the customer lifecycle with the goal of improving customer retention and satisfaction.

By gathering customer information, businesses can personalize their interactions, understand customer needs and preferences, and provide better customer service.

This helps in building long-term relationships with customers, increasing customer loyalty, and ultimately leading to higher customer retention rates.

Examples of collecting customer information for CRM include conducting surveys, analyzing customer behavior and purchase history, maintaining customer records, and implementing customer feedback mechanisms.