What is described by "customer relationship management" (CRM)?

Customer relationship management (CRM) is best described as strategies and technologies used to manage a company's relationships and interactions with customers. This definition encapsulates the core purpose of CRM systems, which is to improve business relationships with customers, streamline processes, and enhance profitability.

CRM involves a variety of practices and tools that help organizations understand their customer base, tailor their interactions, and ultimately foster customer loyalty. By leveraging customer data, businesses can analyze buying behaviors, preferences, and feedback, allowing them to offer personalized experiences. This not only improves customer satisfaction but also drives sales through more effective marketing and engagement strategies.

In contrast, other options do not accurately reflect the purpose and scope of CRM. Techniques for employee management pertains to human resources and workforce development, while methods for saving business costs focus on efficiency and budgeting rather than customer engagement. Finally, the analysis of competitor actions is part of market research and strategic planning, but it does not involve direct interaction with customer relationships as CRM does. Thus, the essence of CRM lies in building and managing customer connections effectively through strategic approaches and technological support.