Which of the following is the most important result when a company implements customer relationship management?

Which of the following is the most important result when a company implements customer relationship management?

A. Profits are maximized.

B. Retention of key customers is increased.

C. Product options are increased.

D. Transaction costs are decreased.

View Answer

Answer: B

Explanation:

Context: Customer relationship management (CRM) systems aim to manage a company’s interactions with current and potential customers.

Options Breakdown:

A. Profits are maximized: While a potential outcome, it is a broader financial goal rather than a direct result of CRM.

B. Retention of key customers is increased: CRM focuses on building and maintaining relationships, leading to higher customer retention.

C. Product options are increased: Not directly related to CRM implementation.

D. Transaction costs are decreased: May be an indirect benefit but not the primary focus of CRM.

Correct Answer Justification: The primary purpose of CRM is to enhance customer satisfaction and loyalty, thereby increasing the retention of key customers, which is crucial for long-term business success.

Reference: CRM system benefits and implementation guides

Industry reports on CRM effectiveness in improving customer retention