How can customer relationship management (CRM) be defined?

Customer relationship management (CRM) can be defined as a strategy aimed at managing a company's interactions with current and potential customers. This involves utilizing data analysis to improve business relationships, enhance customer satisfaction, and drive sales growth. By leveraging CRM systems, organizations can gather and analyze customer information, such as purchase history and communication preferences, which informs personalized marketing efforts and service enhancements.

This strategic approach is designed to foster loyalty, streamline processes, and create a better understanding of customer needs and behaviors, ultimately leading to more effective engagement and retention strategies. The focus is on building long-term relationships that benefit both the customer and the business.

In contrast, the other options do not encapsulate the concept of CRM. While increasing product prices effectively, managing financial accounting, or conducting market research can be part of broader marketing and business strategies, they do not specifically address the systematic management of customer relationships and data that defines CRM.