What is meant by 'customer relationship management' (CRM)?

Customer relationship management (CRM) refers specifically to strategies and practices aimed at managing a company’s interactions with current and potential customers. This encompasses a wide range of processes and technologies used to coordinate and analyze customer interactions throughout the customer lifecycle, with the goal of enhancing customer satisfaction, fostering loyalty, and driving sales growth.

By utilizing a CRM system, businesses can collect and interpret customer data, manage customer information effectively, and tailor their marketing and sales efforts to meet the unique needs of each customer. This ultimately allows for more personalized service, improved customer experiences, and stronger relationships that can lead to repeat business.

The other options do not align with the core concept of CRM. Managing financial accounts, overseeing employee relationships, or improving supply chain efficiency focuses on different aspects of business operations that do not inherently involve direct interaction or relationship-building with customers. These areas are important for overall business function but do not define what CRM is.