ITPEC FE Morning April 2022 Question 68

Source exam: ITPEC FE Morning April 2022Topic: Management Strategy

ITPEC FE Morning April 2022 — Question 68 of 80

CRM (Customer Relationship Management) focuses on building long-term customer relationships
to maximize customer loyalty and lifetime value (LTV) — the total revenue a customer

generates over their relationship with the company.

Why not others:
- (b) Describes a POS (Point of Sale) system — captures sales data per product at time of purchase.

- (c) Describes MRP (Material Requirements Planning) — calculates what materials to order and when.

- (d) Describes inventory/SCM optimization — preventing stockouts to avoid lost sales.

Key rule: CRM = customer loyalty + lifetime value. If it's about customers long-term → CRM.

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