Final answer:
CRM systems are intended to decrease the customer churn rate by enhancing customer satisfaction and retention through better understanding and service.
Step-by-step explanation:
The statement that CRM systems increase the customer churn rate is false. CRM, or Customer Relationship Management systems, are designed to cultivate strong relationships with customers, track interactions, and personalize the customer experience. The ultimate goal of a CRM is to enhance customer satisfaction and retention, which would decrease the churn rate, not increase it. Churn rate refers to the percentage of customers who stop using a company's products or services over a specific time period. A successful CRM implementation can help a business understand customer needs, provide better service, predict customer behavior, and ultimately keep customers loyal to the brand. Therefore, rather than increasing churn, effective use of a CRM system should lead to a lower churn rate.