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.

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Definitions:

Decision Tree

A graphical representation of choices and their potential outcomes, including chance event outcomes, resource costs, and utility.

Expected Value Criterion

A decision-making approach based on the weighted average of all possible outcomes, with each outcome's weight being its probability of occurrence.

Variable Cost

Costs that change in proportion to the level of activity or volume of production, such as materials and labor costs.

Setup Cost

The cost to prepare a machine or process for production.