Why Is CRM One of the Most Valuable Assets a Company

question 56

Multiple Choice

Why is CRM one of the most valuable assets a company can acquire?

• A)Because organizations have not been successful in implementing SCM systems, they have turned their resources toward CRM.
• B)CRM has proven to increase customer loyalty and retention and an organization's profitability.
• C)It is easy for a company to steal its competitors' loyal and devoted customers; therefore, companies need a viable process for targeting competitors' customers.
• D)Without CRM, it is impossible to effectively manage or cross-sell products to customers.

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Definitions:

Not Excludable

A characteristic of a good or service that does not allow producers to prevent its use by non-paying consumers, often leading to market failure.

Free Riders

Individuals who benefit from resources, goods, or services without paying for them, often leading to under-provision or depletion of those resources.

Club Goods

Items that are non-rivalrous but excludable, meaning that one person's use does not reduce availability to others but access can be restricted, typically through a membership fee.

Private Goods

Private goods are products that are excludable and rival in consumption, meaning their use is limited to paying customers and one person's consumption prevents another's.