Which of the following outcomes is a benefit typically expected of customer relationship management (CRM)?

Which of the following outcomes is a benefit typically expected of customer relationship management (CRM)?

A. Reducing the size of the sales force by automating activities

B. Gaining a better understanding of customer requirements

C. Implementing automated inter-organizational processes

D. Focusing sales efforts on the most profitable customers

View Answer

Answer: B

Explanation:

Context: Customer relationship management (CRM) systems are designed to enhance the interaction

between a company and its customers.

Options Breakdown:

A. Reducing the size of the sales force by automating activities: While CRM can automate some sales activities, the primary goal is not to reduce the sales force.

B. Gaining a better understanding of customer requirements: CRM systems gather and analyze customer data, helping companies understand customer needs and preferences better.

C. Implementing automated inter-organizational processes: This is more related to enterprise resource planning (ERP) systems rather than CRM.

D. Focusing sales efforts on the most profitable customers: This is an outcome of better customer understanding, but not the primary benefit.

Correct Answer Justification: The key benefit of CRM is its ability to provide detailed insights into customer requirements, which helps in tailoring products and services to meet those needs effectively.

Reference: CRM system benefits and implementation guides

Case studies on the impact of CRM on customer understanding