ITPEC FE Morning October 2020 Question 69

Which of the following is appropriate as a description of Customer Relationship Management (CRM) software?

a)It mainly provides online tools for sales, customer service, and marketing.b)It mainly provides partner relationship management.c)It only supports direct-marketing campaigns.d)It provides information and tools to make call center, help desk, and customer support staff more efficient mainly by phone.

Explanation

Online tools for sales, customer service and marketing — CRM software covers every point where the company deals with its customers.

CRM (Customer Relationship Management) software keeps one shared record of each customer, with contacts, purchases, inquiries and campaign responses, and gives the sales, customer-service and marketing staff the tools to use it. The aim is to strengthen long-term relationships and raise each customer's lifetime value.

Answer (a)

Why not others:

•(b) — managing relationships with partners such as distributors and resellers is PRM (Partner Relationship Management), a separate category
•(c) — "only" is wrong: direct-marketing campaigns are one function of CRM among sales and customer service
•(d) — tools that make call-centre and help-desk staff efficient by phone describe call-centre (CTI) software, which covers only the customer-support part of CRM

Key rule: CRM spans sales, marketing and service around one customer record; a description limited to one channel or one department describes a component, not CRM.

Business Strategy Management · AI-written, may contain errors

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