Why Is CRM One of the Most Valuable Assets a Company

question 65

Multiple Choice

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

• A) Since organizations have not been successful in implementing SCM systems, they have turned their resources towards 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 their competitors' loyal and devoted customers, therefore companies need a viable process for targeting competitor's customers.
• D) Without CRM it is impossible to effectively manage or cross-sell products to customers.

---

Definitions:

Trade-off

A situation that involves losing one quality or aspect of something in return for gaining another quality or aspect.

Wage Rate

The standard amount of pay given to workers per unit of time, often expressed per hour or year.

Labor Supply Curve

Represents the relationship between the quantity of labor that workers are willing to offer and the wage rate, typically showing an upward slope indicating more labor supplied as wages increase.

Wage Rate

The fixed amount of compensation paid to an employee by an employer in exchange for work performed.