Business – 3.1 The nature of marketing – Customer relationship marketing (CRM) | e-Consult
3.1 The nature of marketing – Customer relationship marketing (CRM) (1 questions)
Login to see all questions.
Click on a question to view the answer
The main aims of CRM are:
- Increasing customer retention – By keeping existing customers, firms reduce acquisition costs and benefit from repeat purchases, which boosts profitability.
- Enhancing customer lifetime value (CLV) – Longer, more profitable relationships raise the average revenue per customer, improving cash flow and shareholder returns.
- Building brand loyalty and advocacy – Satisfied customers are more likely to recommend the brand, generating low‑cost word‑of‑mouth promotion and expanding market share.
Each aim supports business performance by lowering costs, increasing revenue streams, and strengthening the firm’s competitive position.