Compared to mass-media marketing, customer relationship management has the advantage of allowing the organization to:

Compared to mass-media marketing, customer relationship management has the advantage of allowing the organization to:

A. compete for customers based on service.

B. reach a larger number of potential customers.

C. reduce inventory to improve cash flow.

D. focus on attracting new customers.

View Answer

Answer: A

Explanation:

Customer relationship management (CRM) offers several advantages over traditional mass-media marketing, particularly in terms of customer service:

Personalized Service: CRM systems enable companies to collect and analyze customer data, allowing for personalized service that meets individual customer needs and preferences.

Customer Engagement: By engaging customers through personalized interactions and targeted communications, companies can build stronger relationships and loyalty.

Competitive Differentiation: Offering superior service based on deep customer insights gained from CRM can differentiate a company from competitors who may rely solely on mass marketing techniques.

Enhanced Customer Experience: CRM helps in delivering a consistent and high-quality customer experience across all touchpoints, which is essential for retaining customers and encouraging repeat business.

Feedback and Improvement: CRM systems facilitate the collection of customer feedback, enabling continuous improvement in service offerings and customer satisfaction.

Reference: Peppers, D., & Rogers, M. (2016). Managing Customer Experience and Relationships: A Strategic Framework. Wiley.

Payne, A., & Frow, P. (2013). Strategic Customer Management: Integrating Relationship Marketing and CRM. Cambridge University Press.